Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


FUTU HOLDINGS LTD-ADR

Nasdaq / Financials / Capital Markets

Fundamental Rating

7

FUTU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 229 industry peers in the Capital Markets industry. FUTU has an excellent profitability rating, but there are some minor concerns on its financial health. FUTU is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make FUTU suitable for growth investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

FUTU had positive earnings in the past year.
In the past year FUTU had a positive cash flow from operations.
Each year in the past 5 years FUTU has been profitable.
Of the past 5 years FUTU 4 years had a positive operating cash flow.
FUTU Yearly Net Income VS EBIT VS OCF VS FCFFUTU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

1.2 Ratios

The Return On Assets of FUTU (3.43%) is comparable to the rest of the industry.
FUTU has a Return On Equity of 19.43%. This is amongst the best in the industry. FUTU outperforms 86.46% of its industry peers.
FUTU has a Return On Invested Capital of 15.44%. This is amongst the best in the industry. FUTU outperforms 92.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FUTU is significantly above the industry average of 7.23%.
The last Return On Invested Capital (15.44%) for FUTU is above the 3 year average (14.12%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.43%
ROE 19.43%
ROIC 15.44%
ROA(3y)3.64%
ROA(5y)3.11%
ROE(3y)16.96%
ROE(5y)16.05%
ROIC(3y)14.12%
ROIC(5y)11.45%
FUTU Yearly ROA, ROE, ROICFUTU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

FUTU's Profit Margin of 40.05% is amongst the best of the industry. FUTU outperforms 80.79% of its industry peers.
FUTU's Profit Margin has improved in the last couple of years.
The Operating Margin of FUTU (48.72%) is better than 86.46% of its industry peers.
In the last couple of years the Operating Margin of FUTU has grown nicely.
The Gross Margin of FUTU (82.01%) is better than 85.59% of its industry peers.
In the last couple of years the Gross Margin of FUTU has grown nicely.
Industry RankSector Rank
OM 48.72%
PM (TTM) 40.05%
GM 82.01%
OM growth 3Y2.89%
OM growth 5Y22.44%
PM growth 3Y0.47%
PM growth 5Y24.32%
GM growth 3Y-0.42%
GM growth 5Y2.22%
FUTU Yearly Profit, Operating, Gross MarginsFUTU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

More info and screens

5

2. Health

2.1 Basic Checks

Compared to 1 year ago, FUTU has less shares outstanding
Compared to 5 years ago, FUTU has more shares outstanding
The debt/assets ratio for FUTU has been reduced compared to a year ago.
FUTU Yearly Shares OutstandingFUTU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
FUTU Yearly Total Debt VS Total AssetsFUTU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

FUTU has an Altman-Z score of 1.10. This is a bad value and indicates that FUTU is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.10, FUTU is in line with its industry, outperforming 56.33% of the companies in the same industry.
The Debt to FCF ratio of FUTU is 0.27, which is an excellent value as it means it would take FUTU, only 0.27 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.27, FUTU belongs to the best of the industry, outperforming 89.96% of the companies in the same industry.
FUTU has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FUTU (0.30) is better than 75.98% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 0.27
Altman-Z 1.1
ROIC/WACCN/A
WACCN/A
FUTU Yearly LT Debt VS Equity VS FCFFUTU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

FUTU has a Current Ratio of 1.19. This is a normal value and indicates that FUTU is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FUTU (1.19) is comparable to the rest of the industry.
FUTU has a Quick Ratio of 1.19. This is a normal value and indicates that FUTU is financially healthy and should not expect problems in meeting its short term obligations.
FUTU has a Quick ratio of 1.19. This is comparable to the rest of the industry: FUTU outperforms 55.02% of its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 1.19
FUTU Yearly Current Assets VS Current LiabilitesFUTU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

More info and screens

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 26.28% over the past year.
The Earnings Per Share has been growing by 90.12% on average over the past years. This is a very strong growth
FUTU shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.79%.
Measured over the past years, FUTU shows a very strong growth in Revenue. The Revenue has been growing by 66.52% on average per year.
EPS 1Y (TTM)26.28%
EPS 3Y28.79%
EPS 5Y90.12%
EPS Q2Q%103.95%
Revenue 1Y (TTM)35.79%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%86.77%

3.2 Future

Based on estimates for the next years, FUTU will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.63% on average per year.
Based on estimates for the next years, FUTU will show a quite strong growth in Revenue. The Revenue will grow by 18.56% on average per year.
EPS Next Y33.26%
EPS Next 2Y24.09%
EPS Next 3Y18.63%
EPS Next 5YN/A
Revenue Next Year33.72%
Revenue Next 2Y22.21%
Revenue Next 3Y18.56%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
FUTU Yearly Revenue VS EstimatesFUTU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B
FUTU Yearly EPS VS EstimatesFUTU Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 20 40 60

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

FUTU is valuated rather expensively with a Price/Earnings ratio of 21.12.
FUTU's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.85, FUTU is valued at the same level.
FUTU is valuated correctly with a Price/Forward Earnings ratio of 15.85.
FUTU's Price/Forward Earnings ratio is in line with the industry average.
FUTU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.89, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.12
Fwd PE 15.85
FUTU Price Earnings VS Forward Price EarningsFUTU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FUTU is valued a bit cheaper than the industry average as 79.48% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FUTU is valued cheaply inside the industry as 85.15% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.93
EV/EBITDA 15.66
FUTU Per share dataFUTU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

FUTU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FUTU has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FUTU's earnings are expected to grow with 18.63% in the coming years.
PEG (NY)0.63
PEG (5Y)0.23
EPS Next 2Y24.09%
EPS Next 3Y18.63%

More info and screens

1

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.03%, FUTU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.38, FUTU is paying slightly less dividend.
FUTU's Dividend Yield is comparable with the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 2.03%

5.2 History

FUTU does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
FUTU Yearly Dividends per shareFUTU Yearly Dividends per shareYearly Dividends per share 2024 0.5 1 1.5

5.3 Sustainability

DPN/A
EPS Next 2Y24.09%
EPS Next 3Y18.63%
FUTU Yearly Income VS Free CF VS DividendFUTU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

More info and screens