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 gets an excellent profitability rating and is at the same time showing great financial health properties. FINV scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make FINV a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
FINV had positive earnings in the past year.
FINV had a positive operating cash flow in the past year.
In the past 5 years FINV has always been profitable.
In the past 5 years FINV always reported a positive cash flow from operatings.
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 has a Return On Equity of 15.67%. This is in the better half of the industry: FINV outperforms 68.63% of its industry peers.
FINV has a better Return On Invested Capital (28.32%) than 94.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FINV is significantly above the industry average of 10.59%.
The last Return On Invested Capital (28.32%) for FINV is above the 3 year average (27.17%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 18.24%, FINV belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
FINV's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 54.51%, FINV belongs to the best 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.
The Gross Margin of FINV (81.77%) is better than 76.47% 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.
The number of shares outstanding for FINV has been reduced compared to 1 year ago.
Compared to 5 years ago, FINV has less shares outstanding
FINV has a better debt/assets ratio than last year.
2.2 Solvency
FINV has an Altman-Z score of 3.73. This indicates that FINV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.73, FINV belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
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.
The Debt to FCF ratio of FINV (0.00) is better than 94.12% of its industry peers.
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 90.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.73 |
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.
The Current ratio of FINV (4.40) is better than 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.
Looking at the Quick ratio, with a value of 4.40, FINV belongs to the top of the industry, outperforming 86.27% 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.
Looking at the last year, FINV shows a small growth in Revenue. The Revenue has grown by 5.69% in the last year.
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.
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
FINV is valuated cheaply with a Price/Earnings ratio of 5.85.
Compared to the rest of the industry, the Price/Earnings ratio of FINV indicates a rather cheap valuation: FINV is cheaper than 86.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, FINV is valued rather cheaply.
A Price/Forward Earnings ratio of 4.47 indicates a rather cheap valuation of FINV.
Based on the Price/Forward Earnings ratio, FINV is valued cheaper than 84.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, FINV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.85 | ||
| Fwd PE | 4.47 |
4.2 Price Multiples
FINV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FINV is cheaper than 94.12% of the companies in the same industry.
FINV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.31 | ||
| EV/EBITDA | 1.56 |
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)0.3
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.
Compared to an average S&P500 Dividend Yield of 2.38, FINV pays a bit more dividend than the S&P500 average.
| 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.
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
FINV pays out 18.52% of its income as dividend. This is a 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%
8.36
-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 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 | 5.85 | ||
| Fwd PE | 4.47 | ||
| P/S | 1.17 | ||
| P/FCF | 5.31 | ||
| P/OCF | 5.26 | ||
| P/B | 1 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 1.56 |
EPS(TTM)1.43
EY17.11%
EPS(NY)1.87
Fwd EY22.36%
FCF(TTM)1.57
FCFY18.82%
OCF(TTM)1.59
OCFY19%
SpS7.17
BVpS8.35
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 | 3.73 |
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