X FINANCIAL-ADR (NYSE:XYF): A CAN SLIM Analysis of High Growth and Market Leadership

The CAN SLIM investment method, created by William O'Neil, joins fundamental and technical study to find high-growth market leaders. This ordered process assesses stocks using seven main factors represented by the letters CAN SLIM, concentrating on firms with solid earnings increases, new products or services, and notable institutional backing while looking at the general market trend. The method has stayed well-liked since its start in the 1988 book "How to Make Money in Stocks" because it methodically finds stocks possessing both fundamental soundness and market speed.

X Financial-ADR (NYSE:XYF) functions as an online personal finance company located in Shenzhen, China, supplying technology platforms for personal finance services using products that contain Xiaoying Card Loan and Xiaoying Preferred Loan. The company's WinSAFE risk control system creates full risk profiles of possible borrowers applying data from credit information suppliers, placing it in the increasing fintech field.

Earnings and Sales Growth

X Financial shows notable quarterly growth numbers that fit exactly with the CAN SLIM "C" factor, which highlights current quarterly earnings and sales speed. The company's latest quarterly results display:

• Quarterly EPS growth of 44.93% measured against the same quarter last year
• Quarterly revenue growth of 65.60% year-over-year

These numbers greatly pass O'Neil's suggested lowest limit of 18-20% growth, pointing to solid operational speed. The quickening in both earnings and sales implies the company is taking market share and performing well in the competitive fintech area.

Annual Earnings Soundness

The "A" in CAN SLIM looks at yearly earnings gains, and X Financial performs here too. With a three-year EPS compound annual growth rate of 28.92%, the company easily passes the 25% lowest growth rate suggested by O'Neil. This steady history of earnings growth shows lasting business speed instead of short-term quarterly gains. Also, the company's return on equity of 22.63% greatly passes the 10% limit noted by the method, showing good use of shareholder money.

Market Leadership and Relative Performance

X Financial displays solid market leadership traits, a main part of the "L" factor in CAN SLIM. The stock's relative strength number of 89.93 shows it has done better than almost 90% of all stocks in the market during the last year. This outstanding performance compared to the wider market suggests institutional notice of the company's growth story and fundamental soundness. Stocks with high relative strength often represent market leaders that keep drawing investor attention.

Financial Condition and Institutional Backing

The company keeps a sound balance sheet with a debt-to-equity number of 0.41, much under the highest limit of 2.0 suggested by the CAN SLIM method's "S" factor looking at supply and demand factors. This careful financial setup allows room for future growth projects while lowering financial risk.

While institutional ownership is at only 4.35%, much under the 85% highest limit, this might offer a chance for more institutional finding and later buying interest as the company's growth story becomes better known in investment groups.

Technical and Fundamental Review

According to ChartMill's technical analysis, X Financial gets a 4 out of 10, with both short-term and long-term trends now negative. However, the stock has shown solid performance over the past year, rising about 89%. The technical report notes important support near $12.31 and resistance between $13.59-$13.70 and $14.09-$14.30.

The fundamental analysis gives a rating of 5 out of 10, pointing out very good profit numbers but some questions about financial condition. The valuation seems fair with a P/E number of 2.26, much under both industry and S&P 500 averages.

Points for CAN SLIM Investors

While X Financial fits several main CAN SLIM factors through its solid earnings growth, market leadership, and sound financial numbers, investors should note the present negative technical trends in both short and long-term periods. The CAN SLIM method stresses investing in stocks with positive market speed, making timing important for possible entry points.

The company's low institutional ownership, while inside CAN SLIM limits, might show limited Wall Street coverage or notice, which could influence liquidity and price finding. However, this might also present a chance if institutional attention grows in the future.

Finding Like Opportunities

For investors wanting to find other stocks that fit CAN SLIM factors, this pre-configured screener offers a beginning point for locating high-growth companies with solid fundamental and technical traits.

Disclaimer: This study is for information only and does not make up investment guidance, suggestion, or backing of any security. Investors should do their own study and talk with a qualified financial advisor before making investment choices. Past results do not ensure future outcomes.