The delivery business created uncertainty for QD, but its winding down removes a weight that can send the stock higher. The stock has pulled back after hitting a 52-weeks high, but the charts suggest to be optimistic about higher stock prices in the future. The balance sheet suggests not only that QD deserves a higher valuation, but it is arguably even undervalued at current prices.
The stock has wavered in recent days after a big rally upwards and the charts suggest there is a reason for all of this. The stock can still go higher for a couple of reasons, which includes an uptrend and the strength of the balance sheet. QD is contemplating shutting down the last-mile delivery business, but this is a good and not a bad thing.
Qudian remains significantly undervalued, trading at over a 60% discount to its liquidation value, presenting a strong margin of safety for investors. The company is aggressively repurchasing shares, having bought back over $40 million worth since June 2024, enhancing shareholder value. Despite economic uncertainties and currency risks, Qudian's diversified currency holdings offer some hedge.
Qudian has been badly affected by global trade tensions, but the charts suggest the stock could be at a good entry point. The income statement is weighed down by the need to get a new growth driver off the ground, which is facing heavy competition. The balance sheet gives QD a lot of leeway, and an argument can be made that the stock ought to trade higher because of it.
Qudian's transition to last-mile delivery in New Zealand and Australia shows progress, boosting shareholder confidence amid past uncertainties. The latest quarterly report reveals a profit for the first time in over a year. Active share repurchase agreements have led to significant value creation, with $68 million spent on buybacks, enhancing shareholder value because the stock being undervalued.