FUTU HOLDINGS LTD-ADR (FUTU)
US36118L1061 - ADR
We assign a fundamental rating of 5 out of 10 to FUTU. FUTU was compared to 212 industry peers in the Capital Markets industry. FUTU has an excellent profitability rating, but there are concerns on its financial health. FUTU shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year FUTU was profitable.
In the past year FUTU has reported a negative cash flow from operations.
Each year in the past 5 years FUTU has been profitable.
FUTU had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
FUTU's Return On Assets of 4.41% is in line compared to the rest of the industry. FUTU outperforms 55.98% of its industry peers.
Looking at the Return On Equity, with a value of 17.43%, FUTU is in the better half of the industry, outperforming 79.90% of the companies in the same industry.
The Return On Invested Capital of FUTU (14.25%) is better than 88.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FUTU is in line with the industry average of 10.87%.
The 3 year average ROIC (12.00%) for FUTU is below the current ROIC(14.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 17.43% | ||
| ROIC | 14.25% |
ROA(3y)3.42%
ROA(5y)2.56%
ROE(3y)14.95%
ROE(5y)13.28%
ROIC(3y)12%
ROIC(5y)9.28%
1.3 Margins
FUTU has a better Profit Margin (42.78%) than 79.43% of its industry peers.
In the last couple of years the Profit Margin of FUTU has grown nicely.
With an excellent Operating Margin value of 50.03%, FUTU belongs to the best of the industry, outperforming 85.17% of the companies in the same industry.
In the last couple of years the Operating Margin of FUTU has grown nicely.
Looking at the Gross Margin, with a value of 84.65%, FUTU belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
FUTU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.03% | ||
| PM (TTM) | 42.78% | ||
| GM | 84.65% |
OM growth 3Y4.11%
OM growth 5Y14.23%
PM growth 3Y2.23%
PM growth 5Y56.53%
GM growth 3Y2.34%
GM growth 5Y4.1%
2. Health
2.1 Basic Checks
Compared to 1 year ago, FUTU has less shares outstanding
FUTU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FUTU has a worse debt to assets ratio.
2.2 Solvency
FUTU has an Altman-Z score of 1.36. This is a bad value and indicates that FUTU is not financially healthy and even has some risk of bankruptcy.
FUTU's Altman-Z score of 1.36 is in line compared to the rest of the industry. FUTU outperforms 57.89% of its industry peers.
FUTU has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
FUTU has a better Debt to Equity ratio (0.23) than 77.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.32 indicates that FUTU should not have too much problems paying its short term obligations.
With a Current ratio value of 1.32, FUTU perfoms like the industry average, outperforming 55.50% of the companies in the same industry.
FUTU has a Quick Ratio of 1.32. 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 1.32, FUTU is in line with its industry, outperforming 55.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
FUTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.23%, which is quite impressive.
The Earnings Per Share has been growing by 148.89% 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 31.45%.
FUTU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 65.28% yearly.
EPS 1Y (TTM)48.23%
EPS 3Y69.04%
EPS 5Y148.89%
EPS growth Q2Q-7.58%
Revenue 1Y (TTM)31.45%
Revenue growth 3Y44.59%
Revenue growth 5Y65.28%
Revenue growth Q2Q4.06%
3.2 Future
Based on estimates for the next years, FUTU will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
FUTU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y4.57%
EPS Next 2Y8.36%
EPS Next 3Y7.53%
EPS Next 5YN/A
Revenue Next Year9.41%
Revenue Next 2Y11%
Revenue Next 3Y10.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
FUTU is valuated rather expensively with a Price/Earnings ratio of 17.58.
Compared to the rest of the industry, the Price/Earnings ratio of FUTU is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.02. FUTU is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.82, the valuation of FUTU can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FUTU is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.58. FUTU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FUTU is valued cheaply inside the industry as 93.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FUTU may justify a higher PE ratio.
PEG (NY)3.85
PEG (5Y)0.12
EPS Next 2Y8.36%
EPS Next 3Y7.53%
5. Dividend
5.1 Amount
No dividends for FUTU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FUTU HOLDINGS LTD-ADR
NASDAQ:FUTU (5/6/2024, 4:51:40 PM)
After market: 73.56 +0.07 (+0.1%)73.49
+1.71 (+2.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 16.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.85
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.41% | ||
| ROE | 17.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 50.03% | ||
| PM (TTM) | 42.78% | ||
| GM | 84.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)48.23%
EPS 3Y69.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.45%
Revenue growth 3Y44.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y