X Financial (NYSE:XYF) Appears on CANSLIM Screen with Strong Growth Metrics

X Financial (NYSE:XYF) has appeared on a CANSLIM-based stock screen, an investing method popularized by William O’Neil that joins fundamental and technical analysis to find high-growth market leaders. The system focuses on strong earnings momentum, institutional sponsorship, and favorable market conditions, seeking stocks with both good financial health and positive price action.

Earnings and Sales Momentum

A core idea of the CANSLIM approach is finding companies with accelerating quarterly earnings and sales growth. X Financial shows clear strength in this area, with recent fundamentals indicating:

• Quarterly EPS growth of 44.26% year-over-year
• Quarterly revenue growth of 60.43% year-over-year
• Three-year EPS compound annual growth rate of 28.92%

These numbers easily meet the CANSLIM thresholds, which usually look for at least 20–25% growth in recent quarters. This acceleration indicates the company is not only growing but doing so at a faster pace, a key trait of emerging market leaders.

Annual Growth and Profitability

The "A" in CANSLIM stands for annual earnings increases, and here too X Financial is notable. The company’s three-year EPS growth of almost 29% exceeds the strategy’s typical 25% minimum requirement. Also, the firm’s return on equity (ROE) of 21.99% points to efficient use of shareholder capital, well above the 10% minimum often used in CANSLIM screens. High ROE is often linked to well-managed companies able to maintain growth without heavy reinvestment.

Supply, Debt, and Ownership

The system also focuses on sound balance sheets and reasonable debt levels. X Financial reports a debt-to-equity ratio of 0.34, much lower than the maximum threshold of 2 often used in CANSLIM filters. This shows a careful approach to leverage and lowers financial risk.

Institutional sponsorship—another key part of the strategy—is present but limited, with institutional ownership at 3.89%. While low compared to larger caps, this can be viewed as a possible positive: there is significant room for more institutional buying, which might offer future price support as the company becomes better known.

Relative Strength and Market Position

X Financial’s relative strength rating of 95.77 means it has done better than almost 96% of all stocks in the market over the past year. This is a very bullish signal within the CANSLIM framework, as it implies the stock is already being noticed by the market, a needed condition before taking a position.

Technical and Fundamental Context

From a technical view, the stock is currently rated neutral over the long term with a negative short-term trend. It is trading in the middle of its 52-week range, which could mean consolidation before a possible breakout. The fundamental analysis report points to a mixed but generally sound profile, with high scores for profitability and growth but some questions around financial health and valuation clarity.

For a closer view of the technical setup, see the full technical analysis report, and for more fundamental details, look at the detailed fundamental report.

Conclusion

X Financial displays several features that match the CANSLIM investment philosophy—strong quarterly and annual growth, high profitability, low debt, and outstanding relative strength. While the stock’s recent technical performance indicates some near-term weakness, its core fundamentals suggest it may deserve attention from growth-focused investors.

For those wanting to see other stocks that fit similar CANSLIM criteria, you can view the full screen results here.

,

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.