Stock fact sheet · data as of
Yiren Digital Ltd. (YRD): fair value, margin of safety and Wheel Score
Ticker symbol YRD · Financial Services · Financial - Credit Services · China · ADR · Speculative Income
YRD is an American depositary share (ADR): the US listing of Yiren Digital Ltd., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is YRD undervalued?
Yiren Digital Ltd. (YRD) closed at 0.3942 on 5 Nov 2026. The GLS average fair value - the simple average of the 2 valuation models that produced a positive number - is 22.11, which puts the price 98% below it. 2 of the 2 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The average is built from just 2 models (DCF, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files YRD under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for YRD
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 37.29 | +9360% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 6.93 | +1659% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | 13.72 | +3380% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Yiren Digital Ltd. scores only 1 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability YRD scores 6.7/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.
Returns on capital are thin or negative - ROIC 0.4%, ROE 0.4%, ROA 0.3% - with debt at 0.01 times equity and negative free cash flow.
The dividend yield is high at 119.51% (payout ratio -18%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Technology Service 100% (fiscal year FY2025).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 1 / 9 | ROIC | 0.4% |
|---|---|---|---|
| GLS Moat | 6.7 / 10 | ROE | 0.4% |
| Debt / equity | 0.01 | ROA | 0.3% |
| Free-cash-flow yield | -830.0% | Payout ratio | -18% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 26: Weak
With a Wheel Score of 26 Yiren Digital Ltd. sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (0 open interest, 0 a day); and filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 1/9 (under 6); and filter 6, no serious red flags - Red Flags score 55 (under 60); and filter 7, a premium worth selling - implied volatility 257% (over 80%); and filter 8, big enough - market cap $34M (under $1.0B); and filter 9, not a penny stock - price 0.39 (under $5); Premium (weak) is its weakest part.
Implied volatility is 257%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 0 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 93k shares a day on a market cap of $34M, with a beta of 1.23 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (0 open interest, 0 a day) |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 1/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Fails | Red Flags score 55 (under 60) |
| 7 | A premium worth selling | Fails | implied volatility 257% (over 80%) |
| 8 | Big enough | Fails | market cap $34M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 0.39 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 98% below fair value | |
| Premium | Weak | implied volatility 257% | |
| Moat | Good | moat 6.7/10 | |
| Health | Weak | Piotroski 1/9 | |
| Red Flags | Weak | Red Flags score 55/100 | |
| Option trading | Weak | 0 contracts a day, 0 open interest | |
| Stability | Fair | beta 1.23, $34M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 25 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
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Start free See the Sunday ScanQuestions about YRD
Is YRD undervalued right now?
By the GLS models, yes: at 0.3942 the stock is 98% below the average fair value of 22.11 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of YRD and what does it mean?
YRD scores 26 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 4, 6, 7, 8, 9. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for YRD?
22.11 per share as of 5 Nov 2026 - the simple average of the 2 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Yiren Digital Ltd. report earnings next?
The next earnings report is due on 25 Nov 2026 (before the open), 20 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does YRD have listed options, and how liquid are they?
Yes. The nightly snapshot found 4 listed contracts with 0 open interest across all expiries and implied volatility of 257% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is YRD an ADR?
Yes. YRD is an American depositary share (ADR): the US listing of Yiren Digital Ltd., whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.