X Financial American Depositary Shares each representing six Class A Ordinary Shares (XYF)

FairStock Score: 92/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-style investor, I start with price and balance sheet. On 2026-10-13, XYF closed at $5.03. FairStock's calculations show a P/E of 2.29, a P/B of 0.17, a Graham Number of $41.62, and an 87.91% margin of safety - numbers that scream statistical cheapness. The dividend yield is 11.43%, debt/equity is only 0.05, and return on capital employed is 14.16%, so leverage is not the obvious problem. But this is not a wonderful business at a fair price; it is a complicated Chinese online lender. The supplied growth figures show revenue growth of 101.54% and profit growth of -85.18%, a combination that tells me credit costs, provisioning, or margins can gut earnings quickly. In the latest quarter, fiscal Q2 2026, revenue was $993.6M but net income was only $47.0M, a 4.73% margin. ROE is 7.28%, the Piotroski F-Score is 4/9, and the Altman Z-Score of 1.24 points to financial fragility. The negative EV/EBITDA of -0.76 is unusual. A moat? I see none; lending is commoditized, and no Lynch category is assigned because there are 0 years of filed results versus the 3 needed. The 92/100 FairStock score and huge margin of safety are enticing, but cheapness without durable earning power can be a value trap. I would need stable credit performance and repeatable profits before trusting the quoted numbers.

In plain English: X Financial makes online personal loans in China, including unsecured credit loans and home-equity loans. The business looks mixed: revenue grew very fast, but profit fell sharply in the supplied figures. The stock price looks very cheap compared with the company's reported profits and net assets, though that cheapness may reflect real risks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer