Yuanbao Inc. American Depositary Shares (YB)

FairStock Score: 95/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I look for a margin of safety, but I also want a business whose numbers I can trust. Yuanbao is a Chinese insurance brokerage with a licensed niche and only 613 employees, incorporated in 2019. In fiscal Q2 2026, the latest quarter shown, revenue was $1.4B and net income was $413.2M, a 29.68% net margin. The supplied growth figures are positive, though the latest quarter is the main data point. The returns look exceptional: ROE 47.21%, ROCE 20.70%, and D/E 0.00. At the 2026-10-13 close of $11.41, FairStock's calculations show P/E 3.03, P/B 0.93, PEG 0.20, dividend yield 10.16%, Graham Number $32.28, and a 64.65% margin of safety. That is the sort of discount Mr. Market occasionally offers. However, I would not confuse a low price with a durable franchise. The company has almost no public filing history—Lynch category none because it has 0 years of filed results and needs 3—and the quality scores are mixed: Piotroski F-Score 3/9 and Altman Z-Score 1.54. The 52-week range of $11.31 to $24.40 shows the stock near its low, and EV/EBITDA of -0.21 is unusual. A license-based insurance broker can earn high returns, but without a long record, a moat is unproven. This may be statistically cheap, yet it demands deep verification of earnings and dividend sustainability before I would call it a Graham-style bargain.

In plain English: Yuanbao is a Chinese company that sells insurance through brokerage and agency licenses, including medical, critical illness, accident, property and pet insurance. In the latest quarter shown, fiscal Q2 2026, it earned $413.2 million on $1.4 billion of revenue, so it is profitable. At $11.41 on 2026-10-13, the stock looks cheap compared with those profits, but the company has a short public history and mixed safety signals, so the cheapness comes with real uncertainty.

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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