QFIN HOLDINGS INC-ADR (QFIN) Stock Fundamental Analysis
NASDAQ:QFIN - US88557W1018 - ADR
30.67 USD
+0.99 (+3.34%)
30.94 USD
+0.27 (+0.88%)
QFIN gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 53 industry peers in the Consumer Finance industry. Both the health and profitability get an excellent rating, making QFIN a very profitable company, without any liquidiy or solvency issues. QFIN is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make QFIN suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
QFIN had positive earnings in the past year.
In the past year QFIN had a positive cash flow from operations.
In the past 5 years QFIN has always been profitable.
QFIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.40%, QFIN belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 29.92%, QFIN belongs to the top of the industry, outperforming 90.57% of the companies in the same industry.
QFIN has a Return On Invested Capital of 16.09%. This is amongst the best in the industry. QFIN outperforms 86.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QFIN is significantly above the industry average of 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.4% | ||
| ROE | 29.92% | ||
| ROIC | 16.09% |
ROA(3y)10.78%
ROA(5y)12.79%
ROE(3y)22.26%
ROE(5y)28.34%
ROIC(3y)16.14%
ROIC(5y)20.6%
1.3 Margins
QFIN has a better Profit Margin (38.98%) than 96.23% of its industry peers.
In the last couple of years the Profit Margin of QFIN has grown nicely.
The Operating Margin of QFIN (45.98%) is better than 96.23% of its industry peers.
QFIN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 83.74%, QFIN is doing good in the industry, outperforming 77.36% of the companies in the same industry.
QFIN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.98% | ||
| PM (TTM) | 38.98% | ||
| GM | 83.74% |
OM growth 3Y2.45%
OM growth 5Y6.92%
PM growth 3Y1.64%
PM growth 5Y6.1%
GM growth 3Y-1.31%
GM growth 5Y-1.19%
2. Health
2.1 Basic Checks
QFIN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, QFIN has less shares outstanding
The number of shares outstanding for QFIN has been reduced compared to 5 years ago.
Compared to 1 year ago, QFIN has a worse debt to assets ratio.
2.2 Solvency
QFIN has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
QFIN's Debt to FCF ratio of 0.60 is amongst the best of the industry. QFIN outperforms 92.45% of its industry peers.
QFIN has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, QFIN belongs to the top of the industry, outperforming 83.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC2.36
WACC6.83%
2.3 Liquidity
QFIN has a Current Ratio of 3.08. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.08, QFIN belongs to the best of the industry, outperforming 83.02% of the companies in the same industry.
A Quick Ratio of 3.08 indicates that QFIN has no problem at all paying its short term obligations.
QFIN's Quick ratio of 3.08 is amongst the best of the industry. QFIN outperforms 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.02% over the past year.
The Earnings Per Share has been growing by 19.96% on average over the past years. This is quite good.
Looking at the last year, QFIN shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
QFIN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.24% yearly.
EPS 1Y (TTM)71.02%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%48.8%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%25.38%
3.2 Future
Based on estimates for the next years, QFIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.81% on average per year.
The Revenue is expected to grow by 8.48% on average over the next years. This is quite good.
EPS Next Y25.36%
EPS Next 2Y19.41%
EPS Next 3Y17.81%
EPS Next 5YN/A
Revenue Next Year14.48%
Revenue Next 2Y10.39%
Revenue Next 3Y9.92%
Revenue Next 5Y8.48%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 4.14, which indicates a rather cheap valuation of QFIN.
Based on the Price/Earnings ratio, QFIN is valued cheaply inside the industry as 92.45% of the companies are valued more expensively.
QFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.76.
Based on the Price/Forward Earnings ratio of 3.61, the valuation of QFIN can be described as very cheap.
88.68% of the companies in the same industry are more expensive than QFIN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.91. QFIN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.14 | ||
| Fwd PE | 3.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 84.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than the industry average as 71.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.03 | ||
| EV/EBITDA | 2.82 |
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 QFIN may justify a higher PE ratio.
A more expensive valuation may be justified as QFIN's earnings are expected to grow with 17.81% in the coming years.
PEG (NY)0.16
PEG (5Y)0.21
EPS Next 2Y19.41%
EPS Next 3Y17.81%
5. Dividend
5.1 Amount
QFIN has a Yearly Dividend Yield of 4.85%, which is a nice return.
In the last 3 months the price of QFIN has falen by -27.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
QFIN's Dividend Yield is a higher than the industry average which is at 4.20.
Compared to an average S&P500 Dividend Yield of 2.36, QFIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
5.2 History
QFIN has been paying a dividend for over 5 years, so it has already some track record.
QFIN has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y19.41%
EPS Next 3Y17.81%
30.67
+0.99 (+3.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.49%
Inst Owner Change-4.39%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.30B
Analysts86.32
Price Target52.61 (71.54%)
Short Float %7.94%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.85% |
Yearly Dividend1.19
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.7%
Min EPS beat(2)5.95%
Max EPS beat(2)9.46%
EPS beat(4)4
Avg EPS beat(4)15.4%
Min EPS beat(4)5.95%
Max EPS beat(4)25.25%
EPS beat(8)6
Avg EPS beat(8)9.11%
EPS beat(12)6
Avg EPS beat(12)3.86%
EPS beat(16)10
Avg EPS beat(16)7.34%
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)0.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)0%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.14 | ||
| Fwd PE | 3.61 | ||
| P/S | 1.74 | ||
| P/FCF | 3.03 | ||
| P/OCF | 3.03 | ||
| P/B | 1.34 | ||
| P/tB | 1.34 | ||
| EV/EBITDA | 2.82 |
EPS(TTM)7.41
EY24.16%
EPS(NY)8.49
Fwd EY27.69%
FCF(TTM)10.12
FCFY32.99%
OCF(TTM)10.12
OCFY32.99%
SpS17.58
BVpS22.9
TBVpS22.84
PEG (NY)0.16
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.4% | ||
| ROE | 29.92% | ||
| ROCE | 20.74% | ||
| ROIC | 16.09% | ||
| ROICexc | 21.82% | ||
| ROICexgc | 21.86% | ||
| OM | 45.98% | ||
| PM (TTM) | 38.98% | ||
| GM | 83.74% | ||
| FCFM | 57.56% |
ROA(3y)10.78%
ROA(5y)12.79%
ROE(3y)22.26%
ROE(5y)28.34%
ROIC(3y)16.14%
ROIC(5y)20.6%
ROICexc(3y)21.28%
ROICexc(5y)29.69%
ROICexgc(3y)21.66%
ROICexgc(5y)30.56%
ROCE(3y)20.75%
ROCE(5y)26.35%
ROICexcg growth 3Y-15.46%
ROICexcg growth 5Y-0.3%
ROICexc growth 3Y-14.46%
ROICexc growth 5Y-1.13%
OM growth 3Y2.45%
OM growth 5Y6.92%
PM growth 3Y1.64%
PM growth 5Y6.1%
GM growth 3Y-1.31%
GM growth 5Y-1.19%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.06% | ||
| Profit Quality | 147.69% | ||
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 | ||
| Altman-Z | N/A |
F-Score6
WACC6.83%
ROIC/WACC2.36
Cap/Depr(3y)135.39%
Cap/Depr(5y)97.38%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.41%
Profit Quality(3y)152.19%
Profit Quality(5y)141.63%
High Growth Momentum
Growth
EPS 1Y (TTM)71.02%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%48.8%
EPS Next Y25.36%
EPS Next 2Y19.41%
EPS Next 3Y17.81%
EPS Next 5YN/A
Revenue 1Y (TTM)5.38%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%25.38%
Revenue Next Year14.48%
Revenue Next 2Y10.39%
Revenue Next 3Y9.92%
Revenue Next 5Y8.48%
EBIT growth 1Y56.1%
EBIT growth 3Y3.52%
EBIT growth 5Y21.07%
EBIT Next Year8.28%
EBIT Next 3Y8.21%
EBIT Next 5Y8.32%
FCF growth 1Y62.69%
FCF growth 3Y16.75%
FCF growth 5Y25.49%
OCF growth 1Y62.69%
OCF growth 3Y17.3%
OCF growth 5Y25.74%