FINVOLUTION GROUP-ADR (FINV) Stock Fundamental Analysis
NYSE:FINV - New York Stock Exchange, Inc. - US31810T1016 - ADR - Currency: USD
We assign a fundamental rating of 8 out of 10 to FINV. FINV was compared to 51 industry peers in the Consumer Finance industry. FINV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on FINV. With these ratings, FINV could be worth investigating further 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.
Each year in the past 5 years FINV had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.10%, FINV belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
FINV's Return On Equity of 15.67% is fine compared to the rest of the industry. FINV outperforms 68.63% of its industry peers.
With an excellent Return On Invested Capital value of 28.32%, FINV belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
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 86.27% of its industry peers.
In the last couple of years the Profit Margin of FINV has declined.
Looking at the Operating Margin, with a value of 54.51%, FINV belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
FINV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.77%, FINV is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Gross Margin of FINV has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FINV is creating value.
FINV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FINV has been reduced compared to 5 years ago.
The debt/assets ratio for FINV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.72 indicates that FINV is not in any danger for bankruptcy at the moment.
The Altman-Z score of FINV (3.72) is better than 90.20% of its industry peers.
The Debt to FCF ratio of FINV is 0.00, which is an excellent value as it means it would take FINV, only 0.00 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.00, FINV belongs to the best of the industry, outperforming 94.12% 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.
Looking at the Debt to Equity ratio, with a value of 0.00, FINV belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.72 |
ROIC/WACC3.66
WACC7.74%
2.3 Liquidity
FINV has a Current Ratio of 4.40. This indicates that FINV is financially healthy and has no problem in meeting its short term obligations.
FINV has a Current ratio of 4.40. This is amongst the best in the industry. FINV outperforms 86.27% 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.
FINV has a Quick ratio of 4.40. This is amongst the best in the industry. FINV outperforms 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 4.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.94% over the past year.
The Earnings Per Share has been growing slightly by 3.42% on average over the past years.
The Revenue has been growing slightly by 5.69% in the past year.
Measured over the past years, FINV shows a quite strong growth in Revenue. The Revenue has been growing by 16.99% on average per year.
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
FINV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.46% yearly.
FINV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.70% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.01, which indicates a rather cheap valuation of FINV.
Based on the Price/Earnings ratio, FINV is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
FINV is valuated cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.60, which indicates a rather cheap valuation of FINV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FINV indicates a rather cheap valuation: FINV is cheaper than 84.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FINV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 4.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FINV is valued cheaper than 94.12% of the companies in the same industry.
FINV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.47 | ||
| EV/EBITDA | 1.53 |
4.3 Compensation for Growth
FINV's 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.
A more expensive valuation may be justified as FINV's earnings are expected to grow with 15.46% in the coming years.
PEG (NY)0.31
PEG (5Y)1.76
EPS Next 2Y17.16%
EPS Next 3Y15.46%
5. Dividend
5.1 Amount
FINV has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
FINV's Dividend Yield is a higher than the industry average which is at 4.38.
FINV's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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.
FINV has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.61%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
18.52% of the earnings are spent on dividend by FINV. This is a low number and sustainable payout ratio.
The dividend of FINV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.52%
EPS Next 2Y17.16%
EPS Next 3Y15.46%
8.6
-0.07 (-0.81%)
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 Cap2.18B
Analysts86.15
Price Target12.17 (41.51%)
Short Float %19.48%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend0.25
Dividend Growth(5Y)5.61%
DP18.52%
Div Incr Years4
Div Non Decr Years4
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 | 6.01 | ||
| Fwd PE | 4.6 | ||
| P/S | 1.2 | ||
| P/FCF | 5.47 | ||
| P/OCF | 5.42 | ||
| P/B | 1.03 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 1.53 |
EPS(TTM)1.43
EY16.63%
EPS(NY)1.87
Fwd EY21.72%
FCF(TTM)1.57
FCFY18.28%
OCF(TTM)1.59
OCFY18.46%
SpS7.17
BVpS8.34
TBVpS8.24
PEG (NY)0.31
PEG (5Y)1.76
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 | 3.72 |
F-Score5
WACC7.74%
ROIC/WACC3.66
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