Yiren Digital Ltd. American Depositary Shares each representing two ordinary shares (YRD)

FairStock Score: 42/100 — MIXED

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Attractive 27.2% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Yiren Digital Ltd. American Depositary Shares each representing two ordinary shares is a micro-cap financial services company valued at $179 million. The business generates $5.7 billion in annual revenue with a 1.0% net margin. From a quality standpoint, Yiren shows distressed Altman Z-Score of 1.2 warrants caution and modest 0% ROE. On valuation, the stock is trading at a premium 29.7x earnings, with offers a 58% margin of safety vs Graham Number of $5. Growth dynamics show revenue growing at 5.0% and profit growth of -10.6%. The 27.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer