I’ve been keeping an eye on Yirendai Ltd (NYSE:YRD) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe YRD has a lot to offer. Basically, it is a financially-healthy company with a strong history and a buoyant growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Yirendai here.
Very undervalued with exceptional growth potential
YRD’s proven ability to generate high returns in the past, both in terms of equity and assets offer investors comfort in its demonstrated capacity to grow its profitability.
YRD’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Looking at YRD’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Yirendai, there are three fundamental aspects you should further research:
- Valuation: What is YRD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether YRD is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does YRD return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from YRD as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of YRD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.