X FINANCIAL-ADR (NYSE:XYF) – A CANSLIM Candidate with Strong Growth Metrics

X FINANCIAL-ADR (NYSE:XYF) emerged from our CANSLIM stock screen, displaying several characteristics that align with William O’Neil’s growth investing strategy. The company operates in China’s personal finance sector, offering technology-driven lending and wealth management solutions. Below, we examine why XYF fits the CANSLIM criteria.

Key CANSLIM Criteria Met by XYF

• Earnings Growth (C & A):

  • Quarterly EPS growth (Q2Q) of 44.26%, well above the 20% minimum threshold.
  • Revenue growth (Q2Q) of 60.43%, exceeding the 25% benchmark.
  • Three-year EPS CAGR of 28.92%, demonstrating consistent annual growth.

• Return on Equity (A):

  • ROE of 21.99%, indicating efficient use of shareholder capital.

• Debt Management (S):

  • Debt-to-equity ratio of 0.34, reflecting a conservative balance sheet.

• Relative Strength (L):

  • ChartMill Relative Strength of 98.76, placing it in the top 2% of performers.

• Institutional Sponsorship (I):

  • Institutional ownership is low at 3.95%, suggesting room for increased institutional interest.

Technical and Fundamental Highlights

• Technical Analysis: XYF scores a perfect 10/10 in our technical rating, with both short-term and long-term trends positive. The stock is trading near its 52-week high, supported by strong momentum. For a deeper look, review the full technical report.
• Fundamental Analysis: XYF holds a solid profitability score (8/10) with high margins and efficient capital use. Valuation appears attractive with a P/E of 3.54. See the detailed fundamental report for more insights.

Our CANSLIM High Growth screener lists more stocks matching this strategy and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.