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. 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.
In the past year FINV had a positive cash flow from operations.
Each year in the past 5 years FINV has been profitable.
In the past 5 years FINV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FINV (10.10%) is better than 88.24% of its industry peers.
The Return On Equity of FINV (15.67%) is better than 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 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
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.
The Operating Margin of FINV (54.51%) is better than 98.04% of its industry peers.
In the last couple of years the Operating Margin of FINV has grown nicely.
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.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FINV is creating value.
Compared to 1 year ago, FINV has less shares outstanding
Compared to 5 years ago, FINV has less shares outstanding
Compared to 1 year ago, FINV has an improved debt to assets ratio.
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.
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.
FINV's Debt to Equity ratio of 0.00 is amongst the best of the industry. FINV outperforms 90.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.73 |
ROIC/WACC3.66
WACC7.74%
2.3 Liquidity
A Current Ratio of 4.40 indicates that FINV has no problem at all paying its short term obligations.
Looking at the Current 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.
A Quick Ratio of 4.40 indicates that FINV has no problem at all paying its short term obligations.
The Quick ratio of FINV (4.40) is better than 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.
Measured over the past 5 years, FINV shows a small growth in Earnings Per Share. The EPS has been growing by 3.42% on average per year.
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.
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
The Price/Earnings ratio is 6.01, which indicates a rather cheap valuation of FINV.
Based on the Price/Earnings ratio, FINV is valued cheaper than 86.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of FINV to the average of the S&P500 Index (26.17), we can say FINV is valued rather cheaply.
FINV is valuated cheaply with a Price/Forward Earnings ratio of 4.60.
86.27% of the companies in the same industry are more expensive than FINV, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, FINV is valued rather cheaply.
| 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 | 1.55 |
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.
FINV has an outstanding profitability rating, which 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)0.31
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.
Compared to an average industry Dividend Yield of 4.38, FINV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, FINV pays a bit more dividend than the S&P500 average.
| 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
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%
8.6
-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 | 1.55 |
EPS(TTM)1.43
EY16.63%
EPS(NY)1.87
Fwd EY21.72%
FCF(TTM)1.57
FCFY18.27%
OCF(TTM)1.59
OCFY18.45%
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 | 3.73 |
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