FUTU HOLDINGS LTD-ADR (FUTU) Stock Fundamental Analysis
NASDAQ:FUTU - Nasdaq - US36118L1061 - ADR - Currency: USD
Overall FUTU gets a fundamental rating of 7 out of 10. We evaluated FUTU against 232 industry peers in the Capital Markets industry. FUTU scores excellent on profitability, but there are some minor concerns on its financial health. FUTU is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
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
FUTU's Return On Assets of 3.43% is in line compared to the rest of the industry. FUTU outperforms 57.33% of its industry peers.
FUTU has a better Return On Equity (19.43%) 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 last Return On Invested Capital (15.44%) for FUTU is above the 3 year average (14.12%), which is a sign of increasing profitability.
| 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's Profit Margin of 40.05% is amongst the best of the industry. FUTU outperforms 82.76% of its industry peers.
In the last couple of years the Profit Margin of FUTU has grown nicely.
Looking at the Operating Margin, with a value of 48.72%, FUTU belongs to the top of the industry, outperforming 83.19% of the companies in the same industry.
FUTU's Operating Margin has improved in the last couple of years.
The Gross Margin of FUTU (82.01%) is better than 84.91% of its industry peers.
In the last couple of years the Gross Margin of FUTU has grown nicely.
| 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
The number of shares outstanding for FUTU has been reduced compared to 1 year ago.
The number of shares outstanding for FUTU has been increased compared to 5 years ago.
FUTU has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.16, FUTU is in line with its industry, outperforming 56.47% of the companies in the same industry.
The Debt to FCF ratio of FUTU is 0.27, which is an excellent value as it means it would take FUTU, only 0.27 years of fcf income to pay off all of its debts.
FUTU has a Debt to FCF ratio of 0.27. This is amongst the best in the industry. FUTU outperforms 91.38% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that FUTU is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, FUTU is in the better half of the industry, outperforming 74.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 0.27 | ||
| Altman-Z | 1.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FUTU has a Current 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.
FUTU has a Current ratio (1.19) which is comparable to the rest of the industry.
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.
FUTU has a Quick ratio (1.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
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.
The Earnings Per Share has been growing by 90.12% on average over the past years. This is a very strong growth
Looking at the last year, FUTU shows a very strong growth in Revenue. The Revenue has grown by 35.79%.
FUTU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 66.52% yearly.
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
The Earnings Per Share is expected to grow by 18.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 20.67% on average over the next years. This is a very strong growth
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 19.58 indicates a rather expensive valuation of FUTU.
The rest of the industry has a similar Price/Earnings ratio as FUTU.
FUTU is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.35, FUTU is valued correctly.
FUTU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FUTU to the average of the S&P500 Index (22.19), we can say FUTU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FUTU is valued a bit cheaper than the industry average as 76.29% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FUTU is valued cheaper than 85.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.33 | ||
| EV/EBITDA | 17.39 |
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.
FUTU has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FUTU's earnings are expected to grow with 18.63% in the coming years.
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%.
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%
122.16
+0.47 (+0.39%)
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 Cap17.01B
Analysts83.48
Price Target143.47 (17.44%)
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 | 19.58 | ||
| Fwd PE | 15.35 | ||
| P/S | 9.82 | ||
| P/FCF | 4.33 | ||
| P/OCF | 4.31 | ||
| P/B | 4.77 | ||
| P/tB | 4.77 | ||
| EV/EBITDA | 17.39 |
EPS(TTM)6.24
EY5.11%
EPS(NY)7.96
Fwd EY6.51%
FCF(TTM)28.21
FCFY23.09%
OCF(TTM)28.36
OCFY23.22%
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%