FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) - A Strong Growth Stock with Reasonable Valuation

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) was identified as an affordable growth stock by our screening process. The company combines strong growth metrics with solid profitability and a reasonable valuation, making it an interesting candidate for investors seeking growth at a sensible price.

Growth Prospects

FUTU has demonstrated impressive growth, with key highlights including:

• Revenue Growth: Revenue increased by 35.79% over the past year, with a 5-year average annual growth rate of 66.52%.
• Earnings Expansion: EPS grew by 26.28% in the last year, with a long-term annualized growth rate of 90.12%.
• Future Expectations: Analysts project continued EPS growth of 18.63% and revenue growth of 18.56% annually.

Valuation

Despite its strong growth, FUTU remains reasonably priced:

• P/E Ratio: At 21.24, it is slightly below the S&P 500 average of 24.95.
• Forward P/E: 15.93 suggests a more attractive valuation compared to industry peers.
• Price/FCF: The stock trades at a discount relative to 85% of its industry peers.

Profitability & Financial Health

FUTU excels in profitability but has some financial health considerations:

• Profit Margins: Operating margin of 48.72% and net margin of 40.05% rank in the top tier of its sector.
• ROE & ROIC: Return on Equity (19.43%) and Return on Invested Capital (15.44%) are well above industry averages.
• Debt Levels: A manageable Debt/Equity ratio of 0.30 indicates a balanced capital structure, though its Altman-Z score suggests some solvency risk.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper look, review the full fundamental analysis of FUTU.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.