FINVOLUTION GROUP-ADR (FINV) Stock Fundamental Analysis
NYSE:FINV - New York Stock Exchange, Inc. - US31810T1016 - ADR - Currency: USD
FINV gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 52 industry peers in the Consumer Finance industry. FINV scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on FINV. This makes FINV very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
FINV had positive earnings in the past year.
In the past year FINV had a positive cash flow from operations.
In the past 5 years FINV has always been profitable.
FINV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.10%, FINV belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
FINV has a better Return On Equity (15.67%) than 61.54% of its industry peers.
FINV has a Return On Invested Capital of 28.32%. This is amongst the best in the industry. FINV outperforms 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FINV is significantly above the industry average of 10.59%.
The 3 year average ROIC (27.17%) for FINV is below the current ROIC(28.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 15.67% | ||
| ROIC | 28.32% |
ROA(3y)10.56%
ROA(5y)11.75%
ROE(3y)17.01%
ROE(5y)19.63%
ROIC(3y)27.17%
ROIC(5y)26.14%
1.3 Margins
FINV's Profit Margin of 18.24% is amongst the best of the industry. FINV outperforms 84.62% of its industry peers.
FINV's Profit Margin has declined in the last couple of years.
FINV has a better Operating Margin (54.51%) than 98.08% of its industry peers.
FINV's Operating Margin has improved in the last couple of years.
FINV's Gross Margin of 81.77% is fine compared to the rest of the industry. FINV outperforms 76.92% of its industry peers.
FINV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.51% | ||
| PM (TTM) | 18.24% | ||
| GM | 81.77% |
OM growth 3Y4.09%
OM growth 5Y4.2%
PM growth 3Y-11.7%
PM growth 5Y-14.45%
GM growth 3Y0.5%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FINV is creating value.
Compared to 1 year ago, FINV has less shares outstanding
Compared to 5 years ago, FINV has less shares outstanding
The debt/assets ratio for FINV has been reduced compared to a year ago.
2.2 Solvency
FINV has an Altman-Z score of 3.69. This indicates that FINV is financially healthy and has little risk of bankruptcy at the moment.
FINV has a Altman-Z score of 3.69. This is amongst the best in the industry. FINV outperforms 90.38% of its industry peers.
FINV has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.00, FINV belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
FINV has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.00, FINV belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.69 |
ROIC/WACC3.65
WACC7.75%
2.3 Liquidity
A Current Ratio of 4.40 indicates that FINV has no problem at all paying its short term obligations.
FINV has a better Current ratio (4.40) than 88.46% of its industry peers.
FINV has a Quick Ratio of 4.40. This indicates that FINV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.40, FINV belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 4.4 |
3. Growth
3.1 Past
FINV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.94%, which is quite impressive.
FINV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.42% yearly.
FINV shows a small growth in Revenue. In the last year, the Revenue has grown by 5.69%.
FINV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.99% yearly.
EPS 1Y (TTM)25.94%
EPS 3Y2.31%
EPS 5Y3.42%
EPS Q2Q%45.44%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y11.33%
Revenue growth 5Y16.99%
Sales Q2Q%10%
3.2 Future
Based on estimates for the next years, FINV will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.46% on average per year.
The Revenue is expected to grow by 9.70% on average over the next years. This is quite good.
EPS Next Y19.5%
EPS Next 2Y17.16%
EPS Next 3Y15.46%
EPS Next 5YN/A
Revenue Next Year11.81%
Revenue Next 2Y11.29%
Revenue Next 3Y9.7%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FINV is valuated cheaply with a Price/Earnings ratio of 5.85.
Based on the Price/Earnings ratio, FINV is valued cheaply inside the industry as 86.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.25, FINV is valued rather cheaply.
A Price/Forward Earnings ratio of 4.48 indicates a rather cheap valuation of FINV.
Based on the Price/Forward Earnings ratio, FINV is valued cheaper than 86.54% of the companies in the same industry.
FINV is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.85 | ||
| Fwd PE | 4.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FINV is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
FINV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FINV is cheaper than 63.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.32 | ||
| EV/EBITDA | 1.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FINV may justify a higher PE ratio.
FINV's earnings are expected to grow with 15.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)1.71
EPS Next 2Y17.16%
EPS Next 3Y15.46%
5. Dividend
5.1 Amount
FINV has a Yearly Dividend Yield of 2.95%.
FINV's Dividend Yield is a higher than the industry average which is at 4.36.
FINV's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of FINV has a limited annual growth rate of 5.61%.
FINV has been paying a dividend for over 5 years, so it has already some track record.
As FINV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)5.61%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
FINV pays out 18.52% of its income as dividend. This is a sustainable payout ratio.
FINV's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.52%
EPS Next 2Y17.16%
EPS Next 3Y15.46%
8.36
-0.36 (-4.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners51.99%
Inst Owner Change6.24%
Ins Owners8.39%
Ins Owner ChangeN/A
Market Cap2.12B
Analysts86.15
Price Target12.17 (45.57%)
Short Float %19.48%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend0.25
Dividend Growth(5Y)5.61%
DP18.52%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)60.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)6.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.85 | ||
| Fwd PE | 4.48 | ||
| P/S | 1.17 | ||
| P/FCF | 5.32 | ||
| P/OCF | 5.27 | ||
| P/B | 1 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 1.47 |
EPS(TTM)1.43
EY17.11%
EPS(NY)1.87
Fwd EY22.34%
FCF(TTM)1.57
FCFY18.8%
OCF(TTM)1.59
OCFY18.98%
SpS7.17
BVpS8.34
TBVpS8.24
PEG (NY)0.3
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 15.67% | ||
| ROCE | 33.39% | ||
| ROIC | 28.32% | ||
| ROICexc | 36.27% | ||
| ROICexgc | 36.68% | ||
| OM | 54.51% | ||
| PM (TTM) | 18.24% | ||
| GM | 81.77% | ||
| FCFM | 21.93% |
ROA(3y)10.56%
ROA(5y)11.75%
ROE(3y)17.01%
ROE(5y)19.63%
ROIC(3y)27.17%
ROIC(5y)26.14%
ROICexc(3y)34.82%
ROICexc(5y)33.56%
ROICexgc(3y)35.17%
ROICexgc(5y)33.94%
ROCE(3y)32.03%
ROCE(5y)30.81%
ROICexcg growth 3Y5.31%
ROICexcg growth 5Y9.71%
ROICexc growth 3Y5.34%
ROICexc growth 5Y9.72%
OM growth 3Y4.09%
OM growth 5Y4.2%
PM growth 3Y-11.7%
PM growth 5Y-14.45%
GM growth 3Y0.5%
GM growth 5Y0.5%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.94% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 185.91 | ||
| Cash Conversion | 40.23% | ||
| Profit Quality | 120.24% | ||
| Current Ratio | 4.4 | ||
| Quick Ratio | 4.4 | ||
| Altman-Z | 3.69 |
F-Score5
WACC7.75%
ROIC/WACC3.65
Cap/Depr(3y)883.8%
Cap/Depr(5y)572.3%
Cap/Sales(3y)1.66%
Cap/Sales(5y)1.2%
Profit Quality(3y)55.72%
Profit Quality(5y)60.07%
High Growth Momentum
Growth
EPS 1Y (TTM)25.94%
EPS 3Y2.31%
EPS 5Y3.42%
EPS Q2Q%45.44%
EPS Next Y19.5%
EPS Next 2Y17.16%
EPS Next 3Y15.46%
EPS Next 5YN/A
Revenue 1Y (TTM)5.69%
Revenue growth 3Y11.33%
Revenue growth 5Y16.99%
Sales Q2Q%10%
Revenue Next Year11.81%
Revenue Next 2Y11.29%
Revenue Next 3Y9.7%
Revenue Next 5YN/A
EBIT growth 1Y4.64%
EBIT growth 3Y15.88%
EBIT growth 5Y21.9%
EBIT Next Year40.81%
EBIT Next 3Y20.08%
EBIT Next 5YN/A
FCF growth 1Y227.35%
FCF growth 3Y70.81%
FCF growth 5YN/A
OCF growth 1Y104.69%
OCF growth 3Y66.2%
OCF growth 5YN/A