Yirendai Stock Price and Research (NYSE: YRD)
Yirendai (NYSE: YRD) is a $3 billion company today. Investors that bought shares one year ago are sitting on a 34.57% total return. That's above the S&P 500's return of 18.21%.
Yirendai stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: Yirendai reported a recent EPS growth rate of -13.31%. That's below the consumer finance industry average of 4.56%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the consumer finance industry is 61.65. And Yirendai's ratio comes in at 11.68. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Yirendai stock is 0%. That's below the consumer finance industry average of 472.90%. The company is less leveraged.
✓ Free Cash Flow per Share Growth : Yirendai has increased its FCF per share over the last year relative to its competitors. That's good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✗ Profit Margins : The profit margin of Yirendai comes in at 20.01% today. And generally, the higher, the better. We also like to see this ratio above competitors. Yirendai's profit margin is below the consumer finance average of 20.09%. So that's a negative indicator for investors.
✓ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Yirendai is 61.5% and that's above its industry average ROE of 17.53%.
Yirendai stock passes four of our six key metrics today. That's why our Investment U Stock Grader gives it a Buy with Caution.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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