YB

Yuanbao

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

Nasdaq

County of HQ

China

Next Earnings Date

06/04/26

Business Summary

Yuanbao operates as an application software provider, monetizing its platform through scalable software solutions that generate high-margin recurring revenue. With 62.30% operating margins, the model is likely built on digital distribution and low marginal cost expansion, allowing incremental revenue to convert efficiently into profit. The 62.10% ROIC suggests the company requires limited incremental capital to grow, a hallmark of strong unit economics and disciplined capital allocation. Its moat likely stems from embedded workflows, customer switching costs, and data-layer integration that make its software sticky and defensible within client operations.

 


VALUATION

P/E

4.6

Market Cap ($M USD)

$857

Forward P/E

0.6

PEG

-

PRICE TO SALES

1.4

PRICE TO BOOK

1.8

EV / EBITDA

4.8

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$5.89

Next Year EPS Growth Estimate

$33.39

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

62.30%

FREE CASH FLOW

Operating Margin

30.10%

Debt-to-Equity

0

Piotroski F-Score

-

Altman Z-Score

5.4

Return on Invested Capital (ROIC)

62.10%

Current Ratio

3.4

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Gainseekers Quantitative Analysis

Summary

At 4.6x earnings and an almost absurd 0.6x forward P/E, the market is pricing YB Yuanbao as if its earnings are about to collapse, yet EPS is $4.8 with next year estimated at $5.89, implying growth rather than contraction. A 5.4 Altman Z-Score signals extremely low bankruptcy risk, reinforced by a 3.4 current ratio and manageable 30.10% debt-to-equity. With a 62.30% operating margin and 62.10% ROIC, this is not a distressed asset—it is a highly profitable one trading at deep value multiples. The spread between current and forward earnings multiples suggests either severe skepticism about durability or a textbook mispricing opportunity in a cash-generative software name.

AI Exposure / Tech Reliance

As a Software - Application company in the Technology sector, Yuanbao sits directly in the layer where AI integration can enhance automation, analytics, and customer workflow efficiency. High operating margins of 62.30% indicate scalable infrastructure that can absorb AI enhancements without margin destruction. In application software, the winners are those that embed intelligence into recurring platforms, and the financial profile here suggests capacity to invest without stressing the balance sheet.

The Bull Case

A GARP or deep value investor would be drawn immediately to the 0.6 forward P/E paired with ROIC of 62.10%, an elite combination of growth and capital efficiency. Operating margins at 62.30% indicate pricing power and a structurally asset-light model, while the 3.4 current ratio and 5.4 Altman Z-Score provide balance sheet comfort rarely seen at 4.6x earnings. EPS expansion from $4.8 to an estimated $5.89 alongside reported Sales Growth Next Year of $33.39 supports the forward multiple compression narrative. At a $857M market cap, the company appears small enough to be inefficiently priced yet profitable enough to avoid speculative classification. This is the type of asymmetry where downside is cushioned by profitability and upside is driven by multiple normalization.

The Bear Case

The market may be signaling distrust: PEG Forward is not provided, Return on Equity is not provided, and several ownership and sentiment indicators are absent, creating an information vacuum. A 30.10% debt-to-equity ratio is not alarming, but in a downturn even moderate leverage can pressure small-cap technology names, especially with no dividend support and a TTM yield of 0. The lack of forward visibility metrics and missing quality scores may justify the compressed multiple if earnings durability is cyclical or customer concentration is high. If growth disappoints even modestly, a stock priced for perfection on forward earnings could re-rate sharply despite today’s low trailing multiple.

Market Sentiment & Smart Money

Short Interest %

0.20%

Analyst Consensus

-

Average Analyst Price Target

-

Institutional Ownership %

10.50%

1-Year Beta

1.13

Insider Buying % (6 Mo)

3.00%%

Distance to 52-Week High

60.00%

Distance to 52-Week Low

132.50%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.