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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1991
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$0
Ning Tang
Yiren Digital Ltd. is an advanced, AI-powered platform providing a comprehensive suite of financial and lifestyle services in China. Its mission is to elevate customers' financial well-being and enhance their quality of life by delivering digital financial services, tailor-made insurance solutions, and premium lifestyle services. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, while aiming to augment the overall well-being and security of individuals, families, and businesses.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = YRD ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$YRD Yiren Digital Ltd. | 50 | 85 | 93 | 7 | 3.0x | 0.4x | 66.3% | 48.8% | 84.8% | 28.4% | 27.3% | - | - | 0.0x | $0 | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Yiren Digital Ltd. (YRD) receives a "Hold" rating with a composite score of 50.1/100. It ranks #1991 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Headcount
3.8K
HQ Base
BEIJING,
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for YRD.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 85 | 99 | -14DRAG |
| MOMENTUM | 7 | 3 | +4NEUTRAL |
| VALUATION | 93 | 99 | -6DRAG |
| INVESTMENT | 34 | 53 | -19DRAG |
| STABILITY | 23 | 14 | +9ALPHA |
| SHORT INT | 50 | 57 | -7DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 66.3% (sector 9.0%)
GM 85% vs sector 78%, OM 28% vs sector 18%
Capital turnover N/A, R&D intensity 7.1%
Rev growth N/A, 9yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Yiren Digital Ltd. (YRD) as a Hold with a composite score of 50.1/100 at a current price of $3.74. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Yiren Digital Ltd. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 50.1/100 places it at rank #1991 in our full universe.
Narrow
Medium
Exemplary
Undervalued
Gross margins of 85% signal strong pricing power.
Returns on equity of 66.3% exceed cost of capital.
Value factor score of 93 suggests attractive pricing.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Yiren Digital Ltd. represents a hold based on multi-factor quantitative performance.
Our model assigns Yiren Digital Ltd. a Hold rating, with a composite score of 50.1/100 and 3 out of 5 stars. Ranked #1991 of 7,333 stocks, YRD presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
Yiren Digital Ltd. scores an outstanding 85/100 on our quality factor, placing it among the highest-quality companies in our coverage universe. The company reports a return on equity of 66.3% (sector avg: 9.0%), gross margins of 84.8% (sector avg: 77.7%), net margins of 27.3% (sector avg: 21.9%). This level of profitability and capital efficiency typically reflects a durable competitive advantage and disciplined management.
From a valuation perspective, YRD scores an exceptional 93/100, indicating the stock trades at a deep discount relative to its fundamentals. Key valuation metrics include a P/E ratio of 2.98x, an EV/EBITDA of 0.36x, a P/B ratio of 0.25x. A value score this high suggests the market may be significantly underpricing the company's earnings power, assets, or cash flow generation.
Yiren Digital Ltd.'s investment score of 34/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of 48.8% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Yiren Digital Ltd. is experiencing notably weak momentum with a score of just 7/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth data is not currently available, while a beta of 0.94 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
Yiren Digital Ltd. registers a low stability score of 23/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 0.94 and a debt-to-equity ratio of 0.00x (sector avg: 0.5x). Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
The short interest score of 50/100 for YRD suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include micro-cap liquidity risk. With a $0 market cap (micro-cap), Yiren Digital Ltd. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Yiren Digital Ltd. is a micro-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #1991 of 7,333 overall (73rd percentile). Key comparisons include ROE of 66.3% exceeding the 9.0% sector median and operating margins of 28.4% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While YRD currently exhibits a HOLD profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
Key factor gap
Value (93) vs Momentum (7) — closing this gap could shift the rating.
EV/EBITDA 95% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 637% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 9% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081

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