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QIFU TECHNOLOGY INC (NASDAQ:QFIN) – A Quality Stock Worth Considering

By Mill Chart

Last update: May 15, 2025

QIFU TECHNOLOGY INC (NASDAQ:QFIN) stands out as a strong candidate for quality investors, based on our Caviar Cruise screening methodology. The company demonstrates consistent growth, high profitability, and solid financial health, making it a noteworthy option for long-term investors. Below, we examine why QFIN meets the criteria for quality investing.

QIFU TECHNOLOGY stock chart

Key Strengths of QFIN

  • Strong Revenue and EBIT Growth: Over the past five years, QFIN has delivered an annual revenue growth of 8.48% and EBIT growth of 21.07%, indicating not only expansion but also improving operational efficiency.
  • High Return on Invested Capital (ROIC): With an ROIC of 26.0%, the company efficiently generates profits from its capital investments, placing it among the top performers in its industry.
  • Low Debt and Strong Cash Flow: QFIN’s debt-to-free cash flow ratio is an exceptionally low 0.15, meaning it could repay all its debt in less than two months using current cash flows. This reflects a highly sustainable financial structure.
  • Profit Quality: The company converts 141.6% of its net income into free cash flow, well above our 75% threshold, signaling strong earnings quality and efficient cash generation.

Valuation and Future Prospects

QFIN appears reasonably valued, with a P/E ratio of 7.6, below both industry and S&P 500 averages. Analysts expect continued earnings growth of 16.2% annually, reinforcing its appeal as a growth stock.

Fundamental Analysis Summary

Our full analysis rates QFIN 8 out of 10, highlighting its outstanding profitability, financial health, and growth potential. The company outperforms most peers in key metrics like operating margin (43.9%) and return on equity (25.9%).

For more quality stock ideas, explore our Caviar Cruise screener.

Disclaimer

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

QIFU TECHNOLOGY INC

NASDAQ:QFIN (6/2/2025, 8:00:01 PM)

After market: 40.85 -0.09 (-0.22%)

40.94

-0.16 (-0.39%)



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QFIN Latest News and Analysis

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QFIN stock offers growth at a reasonable price, with strong profitability, low debt, and a PEG of 0.28—making it a standout for GARP investors.

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QFIN Technology (NASDAQ:QFIN) shows strong earnings momentum, rising profit margins, and a bullish technical setup, making it a candidate for high-growth investors.

ChartMill News Image19 days ago - ChartmillQIFU TECHNOLOGY INC (NASDAQ:QFIN) – A Quality Stock Worth Considering

QIFU TECHNOLOGY INC (NASDAQ:QFIN) is a high-quality stock with strong growth, profitability, and financial health, making it a compelling pick for long-term investors.

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