FUTU HOLDINGS LTD-ADR (FUTU) Stock Fundamental Analysis
NASDAQ:FUTU - Nasdaq - US36118L1061 - ADR - Currency: USD
FUTU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 232 industry peers in the Capital Markets industry. While FUTU has a great profitability rating, there are some minor concerns on its financial health. FUTU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make FUTU a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year FUTU was profitable.
FUTU had a positive operating cash flow in the past year.
In the past 5 years FUTU has always been profitable.
FUTU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of FUTU (3.43%) is comparable to the rest of the industry.
The Return On Equity of FUTU (19.43%) is better than 86.64% of its industry peers.
The Return On Invested Capital of FUTU (15.44%) is better than 90.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FUTU is significantly above the industry average of 7.87%.
The 3 year average ROIC (14.12%) for FUTU is below the current ROIC(15.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 19.43% | ||
| ROIC | 15.44% |
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
FUTU has a Profit Margin of 40.05%. This is amongst the best in the industry. FUTU outperforms 82.76% of its industry peers.
In the last couple of years the Profit Margin of FUTU has grown nicely.
FUTU's Operating Margin of 48.72% is amongst the best of the industry. FUTU outperforms 83.19% of its industry peers.
In the last couple of years the Operating Margin of FUTU has grown nicely.
FUTU has a better Gross Margin (82.01%) than 84.91% of its industry peers.
FUTU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.72% | ||
| PM (TTM) | 40.05% | ||
| GM | 82.01% |
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
FUTU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FUTU has more shares outstanding
The debt/assets ratio for FUTU has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that FUTU is in the distress zone and has some risk of bankruptcy.
FUTU has a Altman-Z score of 1.16. This is comparable to the rest of the industry: FUTU outperforms 56.47% of its industry peers.
FUTU has a debt to FCF ratio of 0.27. This is a very positive value and a sign of high solvency as it would only need 0.27 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.27, FUTU belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that FUTU is not too dependend on debt financing.
The Debt to Equity ratio of FUTU (0.30) is better than 74.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 1.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.19 indicates that FUTU should not have too much problems paying its short term obligations.
FUTU has a Current ratio of 1.19. This is comparable to the rest of the industry: FUTU outperforms 52.16% of its industry peers.
FUTU has a Quick Ratio of 1.19. This is a normal value and indicates that FUTU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.19, FUTU is in line with its industry, outperforming 52.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.46% over the past year.
FUTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 90.12% yearly.
FUTU shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.79%.
The Revenue has been growing by 66.52% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)54.46%
EPS 3Y28.79%
EPS 5Y90.12%
EPS Q2Q%96.39%
Revenue 1Y (TTM)35.79%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%81.09%
3.2 Future
FUTU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.63% yearly.
FUTU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.67% yearly.
EPS Next Y30.9%
EPS Next 2Y23.08%
EPS Next 3Y18.63%
EPS Next 5YN/A
Revenue Next Year37.78%
Revenue Next 2Y23.51%
Revenue Next 3Y20.67%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.60, the valuation of FUTU can be described as rather expensive.
FUTU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FUTU to the average of the S&P500 Index (26.57), we can say FUTU is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.37, which indicates a correct valuation of FUTU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FUTU is on the same level as its industry peers.
FUTU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 15.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FUTU is valued a bit cheaper than 76.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FUTU is valued cheaply inside the industry as 85.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.34 | ||
| EV/EBITDA | 17.61 |
4.3 Compensation for Growth
FUTU'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 FUTU may justify a higher PE ratio.
FUTU's earnings are expected to grow with 18.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)0.22
EPS Next 2Y23.08%
EPS Next 3Y18.63%
5. Dividend
5.1 Amount
FUTU has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.91, FUTU is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.40, FUTU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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 2Y23.08%
EPS Next 3Y18.63%
NASDAQ:FUTU (6/17/2025, 10:13:49 AM)
122.3
-1.21 (-0.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners43.2%
Inst Owner Change11.43%
Ins Owners15.05%
Ins Owner Change0%
Market Cap17.03B
Analysts83.48
Price Target143.47 (17.31%)
Short Float %19.14%
Short Ratio0.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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)1
Avg EPS beat(2)6.37%
Min EPS beat(2)-0.47%
Max EPS beat(2)13.21%
EPS beat(4)3
Avg EPS beat(4)10.63%
Min EPS beat(4)-0.47%
Max EPS beat(4)16.43%
EPS beat(8)6
Avg EPS beat(8)11.88%
EPS beat(12)9
Avg EPS beat(12)11.89%
EPS beat(16)10
Avg EPS beat(16)6.7%
Revenue beat(2)2
Avg Revenue beat(2)9.33%
Min Revenue beat(2)4.98%
Max Revenue beat(2)13.68%
Revenue beat(4)4
Avg Revenue beat(4)6.84%
Min Revenue beat(4)0.56%
Max Revenue beat(4)13.68%
Revenue beat(8)7
Avg Revenue beat(8)7.32%
Revenue beat(12)10
Avg Revenue beat(12)6.04%
Revenue beat(16)13
Avg Revenue beat(16)7.77%
PT rev (1m)2.83%
PT rev (3m)15.06%
EPS NQ rev (1m)14.55%
EPS NQ rev (3m)13.48%
EPS NY rev (1m)0%
EPS NY rev (3m)4.15%
Revenue NQ rev (1m)6.94%
Revenue NQ rev (3m)19.79%
Revenue NY rev (1m)2.98%
Revenue NY rev (3m)16.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 15.37 | ||
| P/S | 9.84 | ||
| P/FCF | 4.34 | ||
| P/OCF | 4.31 | ||
| P/B | 4.77 | ||
| P/tB | 4.77 | ||
| EV/EBITDA | 17.61 |
EPS(TTM)6.24
EY5.1%
EPS(NY)7.96
Fwd EY6.51%
FCF(TTM)28.21
FCFY23.06%
OCF(TTM)28.36
OCFY23.19%
SpS12.43
BVpS25.63
TBVpS25.63
PEG (NY)0.63
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 19.43% | ||
| ROCE | 23.53% | ||
| ROIC | 15.44% | ||
| ROICexc | 25.56% | ||
| ROICexgc | 25.56% | ||
| OM | 48.72% | ||
| PM (TTM) | 40.05% | ||
| GM | 82.01% | ||
| FCFM | 226.85% |
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-Score4
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.27 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 239.6% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 4.21 | ||
| Cash Conversion | 463.21% | ||
| Profit Quality | 566.38% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.16 |
F-Score4
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 Y30.9%
EPS Next 2Y23.08%
EPS Next 3Y18.63%
EPS Next 5YN/A
Revenue 1Y (TTM)35.79%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%81.09%
Revenue Next Year37.78%
Revenue Next 2Y23.51%
Revenue Next 3Y20.67%
Revenue Next 5YN/A
EBIT growth 1Y32.24%
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%