FUTU HOLDINGS LTD-ADR (FUTU) Stock Fundamental Analysis
NASDAQ:FUTU - Nasdaq - US36118L1061 - ADR - Currency: USD
FUTU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 235 industry peers in the Capital Markets industry. FUTU scores excellent on profitability, but there are concerns on its financial health. FUTU is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
FUTU had positive earnings in the past year.
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.
1.2 Ratios
The Return On Assets of FUTU (3.63%) is better than 61.28% of its industry peers.
With an excellent Return On Equity value of 21.62%, FUTU belongs to the best of the industry, outperforming 90.21% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.65%, FUTU belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FUTU is significantly above the industry average of 7.84%.
The last Return On Invested Capital (16.65%) for FUTU is above the 3 year average (14.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 21.62% | ||
| ROIC | 16.65% |
ROA(3y)3.64%
ROA(5y)3.11%
ROE(3y)16.96%
ROE(5y)16.05%
ROIC(3y)14.12%
ROIC(5y)11.45%
1.3 Margins
With an excellent Profit Margin value of 41.74%, FUTU belongs to the best of the industry, outperforming 86.38% of the companies in the same industry.
In the last couple of years the Profit Margin of FUTU has grown nicely.
FUTU's Operating Margin of 51.71% is amongst the best of the industry. FUTU outperforms 88.09% of its industry peers.
FUTU's Operating Margin has improved in the last couple of years.
FUTU has a Gross Margin of 82.64%. This is amongst the best in the industry. FUTU outperforms 87.66% of its industry peers.
In the last couple of years the Gross Margin of FUTU has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.71% | ||
| PM (TTM) | 41.74% | ||
| GM | 82.64% |
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%
2. Health
2.1 Basic Checks
The number of shares outstanding for FUTU has been reduced compared to 1 year ago.
Compared to 5 years ago, FUTU has more shares outstanding
FUTU has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that FUTU is in the distress zone and has some risk of bankruptcy.
FUTU has a Altman-Z score of 1.24. This is comparable to the rest of the industry: FUTU outperforms 56.60% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that FUTU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.36, FUTU is in the better half of the industry, outperforming 71.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FUTU has a Current Ratio of 1.18. 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 Current ratio of 1.18. This is comparable to the rest of the industry: FUTU outperforms 52.77% of its industry peers.
A Quick Ratio of 1.18 indicates that FUTU should not have too much problems paying its short term obligations.
FUTU has a Quick ratio of 1.18. This is comparable to the rest of the industry: FUTU outperforms 53.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
FUTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.46%, which is quite impressive.
Measured over the past years, FUTU shows a very strong growth in Earnings Per Share. The EPS has been growing by 90.12% on average per year.
The Revenue has grown by 55.36% in the past year. This is a very strong growth!
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)54.46%
EPS 3Y28.79%
EPS 5Y90.12%
EPS Q2Q%96.39%
Revenue 1Y (TTM)55.36%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%81.09%
3.2 Future
Based on estimates for the next years, FUTU will show a very strong growth in Earnings Per Share. The EPS will grow by 22.92% on average per year.
FUTU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.30% yearly.
EPS Next Y42.18%
EPS Next 2Y26.54%
EPS Next 3Y22.92%
EPS Next 5YN/A
Revenue Next Year40.58%
Revenue Next 2Y24.49%
Revenue Next 3Y21.3%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
FUTU is valuated quite expensively with a Price/Earnings ratio of 25.68.
Based on the Price/Earnings ratio, FUTU is valued a bit more expensive than the industry average as 62.98% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.46. FUTU is around the same levels.
FUTU is valuated rather expensively with a Price/Forward Earnings ratio of 19.06.
FUTU's Price/Forward Earnings ratio is in line with the industry average.
FUTU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | 19.06 |
4.2 Price Multiples
FUTU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FUTU is cheaper than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.44 |
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 FUTU may justify a higher PE ratio.
A more expensive valuation may be justified as FUTU's earnings are expected to grow with 22.92% in the coming years.
PEG (NY)0.61
PEG (5Y)0.29
EPS Next 2Y26.54%
EPS Next 3Y22.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, FUTU has a reasonable but not impressive dividend return.
FUTU's Dividend Yield is slightly below the industry average, which is at 8.00.
With a Dividend Yield of 1.28, FUTU pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y26.54%
EPS Next 3Y22.92%
160.27
-0.3 (-0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners43.2%
Inst Owner Change-1.31%
Ins Owners15.05%
Ins Owner Change0%
Market Cap22.31B
Analysts83.48
Price Target148.21 (-7.52%)
Short Float %23.5%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.88%
Min EPS beat(2)10.55%
Max EPS beat(2)13.21%
EPS beat(4)3
Avg EPS beat(4)9.16%
Min EPS beat(4)-0.47%
Max EPS beat(4)13.34%
EPS beat(8)6
Avg EPS beat(8)8.51%
EPS beat(12)9
Avg EPS beat(12)12.28%
EPS beat(16)10
Avg EPS beat(16)3.11%
Revenue beat(2)2
Avg Revenue beat(2)8.48%
Min Revenue beat(2)3.27%
Max Revenue beat(2)13.68%
Revenue beat(4)4
Avg Revenue beat(4)7.51%
Min Revenue beat(4)3.27%
Max Revenue beat(4)13.68%
Revenue beat(8)7
Avg Revenue beat(8)5%
Revenue beat(12)10
Avg Revenue beat(12)6.18%
Revenue beat(16)13
Avg Revenue beat(16)5.17%
PT rev (1m)3.31%
PT rev (3m)4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)1.58%
EPS NY rev (3m)6.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.73%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)5.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | 19.06 | ||
| P/S | 11.16 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.78 | ||
| P/tB | 5.78 | ||
| EV/EBITDA | 21.44 |
EPS(TTM)6.24
EY3.89%
EPS(NY)8.41
Fwd EY5.25%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS14.36
BVpS27.73
TBVpS27.73
PEG (NY)0.61
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.63% | ||
| ROE | 21.62% | ||
| ROCE | 26.54% | ||
| ROIC | 16.65% | ||
| ROICexc | 16.65% | ||
| ROICexgc | 16.65% | ||
| OM | 51.71% | ||
| PM (TTM) | 41.74% | ||
| GM | 82.64% | ||
| FCFM | N/A |
ROA(3y)3.64%
ROA(5y)3.11%
ROE(3y)16.96%
ROE(5y)16.05%
ROIC(3y)14.12%
ROIC(5y)11.45%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.27%
ROCE(5y)18.61%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-ScoreN/A
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.24 |
F-ScoreN/A
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)177.61%
Cap/Depr(5y)178.03%
Cap/Sales(3y)1.07%
Cap/Sales(5y)1.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.46%
EPS 3Y28.79%
EPS 5Y90.12%
EPS Q2Q%96.39%
EPS Next Y42.18%
EPS Next 2Y26.54%
EPS Next 3Y22.92%
EPS Next 5YN/A
Revenue 1Y (TTM)55.36%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%81.09%
Revenue Next Year40.58%
Revenue Next 2Y24.49%
Revenue Next 3Y21.3%
Revenue Next 5YN/A
EBIT growth 1Y69.21%
EBIT growth 3Y27.66%
EBIT growth 5Y103.88%
EBIT Next Year44.08%
EBIT Next 3Y24.88%
EBIT Next 5YN/A
FCF growth 1Y580.56%
FCF growth 3Y73.12%
FCF growth 5Y75.51%
OCF growth 1Y589.1%
OCF growth 3Y72.76%
OCF growth 5Y73.54%