Does QIFU TECHNOLOGY INC (NASDAQ:QFIN) match Peter Lynch’s “Invest in What You Know” philosophy?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if QIFU TECHNOLOGY INC (NASDAQ:QFIN) fits his winning formula.

Does QIFU TECHNOLOGY INC (NASDAQ:QFIN) match Peter Lynch’s “Invest in What You Know” philosophy?

• QFIN has achieved an impressive Return on Equity (ROE) of 25.9%, showcasing its ability to generate favorable returns for shareholders.
• Maintaining a Debt-to-Equity ratio of 0.06, QFIN demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• QFIN has experienced 19.96 growth in EPS over a 5-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• A PEG ratio of 0.35 suggests that QFIN offers an attractive balance between growth and valuation.
• QFIN maintains a healthy liquidity position with a Current Ratio of 2.45.

A complete fundamental analysis of QFIN

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall QFIN gets a fundamental rating of 8 out of 10. We evaluated QFIN against 52 industry peers in the Consumer Finance industry. Both the health and profitability get an excellent rating, making QFIN a very profitable company, without any liquidiy or solvency issues. QFIN is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make QFIN suitable for value and quality investing!

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

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.