Yirendai Stock Story


USD 1.12  0.09  7.44%   

Today we may see the proof that Stifel Financial would recover slower from the latest dip as its shares fell 5.4% to Yirendai's 4.55%. As many rational traders are trying to avoid financial services space, it makes sense to digest Yirendai Ltd ADR a little further and understand how it stands against Stifel Financial and other similar entities. We are going to discuss some of the competitive aspects of both Yirendai and Stifel.
Published over a month ago
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Our viewpoint on Yirendai (NYSE:YRD) and Stifel Financial (NYSE:SF)?

By analyzing existing basic indicators between Yirendai and Stifel, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Stifel with a short position in Yirendai. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Yirendai has an asset utilization ratio of 1366.31 percent. This indicates that the company is making $13.66 for each dollar of assets. An increasing asset utilization means that Yirendai Ltd ADR is more efficient with each dollar of assets it utilizes for everyday operations.

Watch out for price decline

Please consider monitoring Yirendai on a daily basis if you are holding a position in it. Yirendai is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Yirendai stock to be traded above the $1 level to remain listed. If Yirendai stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Yirendai's Liquidity

Yirendai financial leverage refers to using borrowed capital as a funding source to finance Yirendai Ltd ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Yirendai financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Yirendai's total debt and its cash.

How does Yirendai utilize its cash?

To perform a cash flow analysis of Yirendai, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Yirendai is receiving and how much cash it distributes out in a given period. The Yirendai cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Yirendai revenue. Based on the latest financial disclosure, Yirendai Ltd ADR reported 4.62 B of revenue. This is 58.79% lower than that of the Financial Services sector and 18.28% lower than that of the Credit Services industry. The revenue for all United States stocks is 51.03% higher than that of the company. As for Stifel Financial we see revenue of 4.71 B, which is 16.69% lower than that of the Credit Services

Yirendai4.62 Billion
Sector5.65 Billion
Stifel4.71 Billion
4.6 B
5.7 B
4.7 B

Will Yirendai recoup in July?

Latest Risk Adjusted Performance is up to -0.08. Price may dip again. Yirendai Ltd ADR exhibits very low volatility with skewness of 1.23 and kurtosis of 3.41. However, we advise investors to further study Yirendai Ltd ADR technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Yirendai's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Yirendai's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Yirendai Implied Volatility

Yirendai's implied volatility exposes the market's sentiment of Yirendai Ltd ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Yirendai's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Yirendai stock will not fluctuate a lot when Yirendai's options are near their expiration.

Our Final Take On Yirendai

Although other entities in the credit services industry are either recovering or due for a correction, Yirendai may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 13th of June 2022, our present 90 days 'Buy-vs-Sell' recommendation on the firm is Strong Sell. However, we believe Yirendai is undervalued with very low probability of distress for the next two years.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Yirendai Ltd ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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