Yirendai Ltd.: Leads amongst peers with strong fundamentals

Yirendai Ltd. relative valuation is UNDERVALUED and it has a fundamental analysis score of 86.

Our analysis is based on comparing Yirendai Ltd. with the following peers – Real Matters, Inc., Rediff.com India Ltd. Sponsored ADR, Reis, Inc. and Stingray Digital Group, Inc. (REAL-CA, REDFY-US, REIS-US and RAY.B-CA).

Yirendai Ltd. has shown good performance overall, both over the last one year (at 53.37%) as well as over the last month (at 42.91%). Share price performance over the last month, though has been lower than that over the last year. But Yirendai Ltd.’s stock has done better than its overall peer group whose performance was -8.70% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • It currently trades at a Price/Book ratio of (6.04).
  • YRD-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • YRD-US has a successful operating model with relatively high net profit margins and asset turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • Over the last five years, YRD-US‘s return on assets has improved from below median to better than the median among its peers, suggesting that the company has improved its relative operations markedly.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • While YRD-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • Our analysis rates Yirendai Ltd. as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

YRD-US‘s share price performance of 53.37% over the last 12 months is above peer median of 3.13%. The 30-day trend in its share price performance of 42.91% is also above the peer median of -8.70% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

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Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Yirendai Ltd.’s price of USD 37.27 is lower than CapitalCube’s implied price of USD 43.94. CapitalCube believes that at these levels, Yirendai Ltd. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 18.80 and USD 42.34.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Yirendai Ltd. is engaged in the easy access to affordable credit and investors with attractive investment opportunities through its online marketplace. It operates through the following segments: Grade A, Grade B, Grade C, and Grade D. It offers online consumer finance marketplace and execute loan transactions. The company was founded by Ning Tang in September 2014 and is headquartered in Beijing, China.


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