QIFU TECHNOLOGY INC (QFIN) Stock Fundamental Analysis
NASDAQ:QFIN - Nasdaq - US88557W1018 - ADR - Currency: USD
Overall QFIN gets a fundamental rating of 8 out of 10. We evaluated QFIN against 52 industry peers in the Consumer Finance industry. QFIN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on QFIN. 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.
QFIN had a positive operating cash flow in the past year.
Each year in the past 5 years QFIN has been profitable.
QFIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.40%, QFIN belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
QFIN's Return On Equity of 29.92% is amongst the best of the industry. QFIN outperforms 90.38% of its industry peers.
QFIN's Return On Invested Capital of 16.09% is amongst the best of the industry. QFIN outperforms 86.54% of its industry peers.
QFIN had an Average Return On Invested Capital over the past 3 years of 16.14%. This is significantly above the industry average of 10.33%.
| 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 96.15% of its industry peers.
QFIN's Profit Margin has improved in the last couple of years.
QFIN has a Operating Margin of 45.98%. This is amongst the best in the industry. QFIN outperforms 96.15% of its industry peers.
QFIN's Operating Margin has improved in the last couple of years.
QFIN's Gross Margin of 83.74% is fine compared to the rest of the industry. QFIN outperforms 78.85% of its industry peers.
In the last couple of years the Gross Margin of QFIN has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so QFIN is creating value.
The number of shares outstanding for QFIN has been reduced compared to 1 year ago.
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.
With an excellent Debt to FCF ratio value of 0.60, QFIN belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that QFIN is not too dependend on debt financing.
QFIN has a better Debt to Equity ratio (0.27) than 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC2.44
WACC6.59%
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.
QFIN has a better Current ratio (3.08) than 82.69% of its industry peers.
QFIN has a Quick Ratio of 3.08. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN's Quick ratio of 3.08 is amongst the best of the industry. QFIN outperforms 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
QFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.63%, which is quite impressive.
QFIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
The Revenue has been growing slightly by 5.10% in the past year.
Measured over the past years, QFIN shows a quite strong growth in Revenue. The Revenue has been growing by 13.24% on average per year.
EPS 1Y (TTM)68.63%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%78.5%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%12.28%
3.2 Future
QFIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.23% yearly.
The Revenue is expected to grow by 8.48% on average over the next years. This is quite good.
EPS Next Y23.67%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
EPS Next 5YN/A
Revenue Next Year9.79%
Revenue Next 2Y7.99%
Revenue Next 3Y8.1%
Revenue Next 5Y8.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.30, the valuation of QFIN can be described as very cheap.
Based on the Price/Earnings ratio, QFIN is valued cheaper than 84.62% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. QFIN is valued rather cheaply when compared to this.
QFIN is valuated cheaply with a Price/Forward Earnings ratio of 5.07.
80.77% of the companies in the same industry are more expensive than QFIN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of QFIN to the average of the S&P500 Index (22.19), we can say QFIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.07 |
4.2 Price Multiples
QFIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QFIN is cheaper than 84.62% of the companies in the same industry.
67.31% of the companies in the same industry are more expensive than QFIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.22 | ||
| EV/EBITDA | 4.29 |
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.
QFIN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as QFIN's earnings are expected to grow with 16.23% in the coming years.
PEG (NY)0.27
PEG (5Y)0.32
EPS Next 2Y18.86%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
QFIN has a Yearly Dividend Yield of 3.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.88, QFIN pays a bit more dividend than its industry peers.
QFIN's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
QFIN has been paying a dividend for over 5 years, so it has already some track record.
The dividend of QFIN decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y18.86%
EPS Next 3Y16.24%
42.69
+0.03 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.53%
Inst Owner Change7.67%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.99B
Analysts86.67
Price Target54.48 (27.62%)
Short Float %8.88%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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)0.68%
PT rev (3m)27.21%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)27.91%
EPS NY rev (1m)0%
EPS NY rev (3m)10.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.1%
Revenue NY rev (3m)5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 5.07 | ||
| P/S | 2.43 | ||
| P/FCF | 4.22 | ||
| P/OCF | 4.22 | ||
| P/B | 1.86 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 4.29 |
EPS(TTM)6.78
EY15.88%
EPS(NY)8.41
Fwd EY19.7%
FCF(TTM)10.12
FCFY23.69%
OCF(TTM)10.12
OCFY23.69%
SpS17.57
BVpS22.89
TBVpS22.84
PEG (NY)0.27
PEG (5Y)0.32
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
WACC6.59%
ROIC/WACC2.44
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)68.63%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%78.5%
EPS Next Y23.67%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
EPS Next 5YN/A
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%12.28%
Revenue Next Year9.79%
Revenue Next 2Y7.99%
Revenue Next 3Y8.1%
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%