NASDAQ:QFIN is an undervalued gem with solid fundamentals.

Our stock screening tool has pinpointed QIFU TECHNOLOGY INC (NASDAQ:QFIN) as an undervalued stock option. NASDAQ:QFIN retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Evaluating Valuation: NASDAQ:QFIN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:QFIN has achieved a 9 out of 10:

• QFIN is valuated cheaply with a Price/Earnings ratio of 7.83.
• Based on the Price/Earnings ratio, QFIN is valued a bit cheaper than 78.85% of the companies in the same industry.
• QFIN is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 5.92, which indicates a rather cheap valuation of QFIN.
• Based on the Price/Forward Earnings ratio, QFIN is valued cheaply inside the industry as 86.54% of the companies are valued more expensively.
• QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
• 63.46% of the companies in the same industry are more expensive than QFIN, based on the Price/Free Cash Flow ratio.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of QFIN may justify a higher PE ratio.
• A more expensive valuation may be justified as QFIN's earnings are expected to grow with 27.08% in the coming years.

What does the Profitability looks like for NASDAQ:QFIN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:QFIN, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 11.62%, QFIN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• QFIN's Return On Equity of 23.90% is amongst the best of the industry. QFIN outperforms 86.54% of its industry peers.
• QFIN has a better Return On Invested Capital (18.00%) than 96.15% of its industry peers.
• QFIN had an Average Return On Invested Capital over the past 3 years of 19.66%. This is significantly above the industry average of 7.34%.
• QFIN has a Profit Margin of 31.78%. This is amongst the best in the industry. QFIN outperforms 92.31% of its industry peers.
• The Operating Margin of QFIN (40.27%) is better than 98.08% of its industry peers.
• The Gross Margin of QFIN (83.13%) is better than 80.77% of its industry peers.

How We Gauge Health for NASDAQ:QFIN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:QFIN has earned a 7 out of 10:

• QFIN has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
• The Debt to FCF ratio of QFIN (0.12) is better than 92.31% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
• With an excellent Debt to Equity ratio value of 0.05, QFIN belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
• A Current Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
• With a decent Current ratio value of 2.56, QFIN is doing good in the industry, outperforming 73.08% of the companies in the same industry.
• QFIN has a Quick Ratio of 2.56. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
• QFIN's Quick ratio of 2.56 is fine compared to the rest of the industry. QFIN outperforms 75.00% of its industry peers.

Evaluating Growth: NASDAQ:QFIN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:QFIN has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 40.63% over the past year.
• Looking at the last year, QFIN shows a quite strong growth in Revenue. The Revenue has grown by 9.41% in the last year.
• The Revenue has been growing by 29.65% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, QFIN will show a very strong growth in Earnings Per Share. The EPS will grow by 27.08% on average per year.
• The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of QFIN for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.