FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) - A Strong Growth Stock With Attractive Valuation

FUTU HOLDINGS LTD-ADR (NASDAQ:FUTU) stands out as an affordable growth stock, according to our screening criteria. The company combines strong growth metrics with reasonable valuation, solid profitability, and acceptable financial health. Here’s why FUTU could be worth a closer look.

Growth Prospects

FUTU has demonstrated impressive growth, with key highlights including:

• Earnings Per Share (EPS) growth of 54.46% over the past year and an average annual growth of 90.12% in recent years.
• Revenue growth of 35.79% in the last year and a 66.52% average annual increase over the past several years.
• Analysts expect future EPS growth of 18.63% and Revenue growth of 20.67%, indicating sustained momentum.

Valuation

Despite its strong growth, FUTU remains reasonably priced:

• P/E ratio of 16.81, below the S&P 500 average of 26.46.
• Forward P/E of 13.17, also lower than the broader market.
• The stock trades at a discount compared to industry peers on metrics like Enterprise Value to EBITDA and Price/Free Cash Flow.

Profitability & Financial Health

FUTU scores well in profitability, with:

• A Profit Margin of 40.05%, outperforming 82.76% of its industry peers.
• Return on Equity (ROE) of 19.43%, ranking in the top tier of its sector.
• Operating Margin of 48.72%, another standout figure.

Financial health is mixed but manageable:

• A Debt-to-Equity ratio of 0.30 suggests a balanced capital structure.
• Liquidity metrics like the Current Ratio (1.19) are in line with industry norms.
• The Altman-Z score (1.07) raises some concerns but is typical for the sector.

For a deeper dive into FUTU’s fundamentals, review the full analysis report.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated regularly.

Disclaimer

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