QIFU TECHNOLOGY INC (QFIN)
US88557W1018 - ADR
QFIN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. While QFIN has a great profitability rating, there are some minor concerns on its financial health. QFIN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make QFIN suitable for value 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.
In the past 5 years QFIN has always been profitable.
Of the past 5 years QFIN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QFIN (8.79%) is better than 94.12% of its industry peers.
QFIN has a better Return On Equity (19.22%) than 84.31% of its industry peers.
With an excellent Return On Invested Capital value of 13.45%, QFIN belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QFIN is significantly above the industry average of 6.52%.
The last Return On Invested Capital (13.45%) for QFIN is well below the 3 year average (19.66%), which needs to be investigated, but indicates that QFIN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 19.22% | ||
| ROIC | 13.45% |
ROA(3y)12.19%
ROA(5y)12.64%
ROE(3y)26.3%
ROE(5y)30.1%
ROIC(3y)19.66%
ROIC(5y)21.79%
1.3 Margins
QFIN has a Profit Margin of 25.77%. This is amongst the best in the industry. QFIN outperforms 90.20% of its industry peers.
QFIN's Profit Margin has been stable in the last couple of years.
The Operating Margin of QFIN (28.80%) is better than 88.24% of its industry peers.
QFIN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 83.99%, QFIN belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
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 | 28.8% | ||
| PM (TTM) | 25.77% | ||
| GM | 83.99% |
OM growth 3Y2.19%
OM growth 5Y-4.22%
PM growth 3Y0.67%
PM growth 5YN/A
GM growth 3Y-1.74%
GM growth 5Y0.02%
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.
QFIN has a worse debt/assets ratio than last year.
2.2 Solvency
QFIN has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
QFIN has a better Debt to FCF ratio (0.12) than 94.12% of its industry peers.
QFIN has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of QFIN (0.04) is better than 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.12 | ||
| Altman-Z | N/A |
ROIC/WACC1.8
WACC7.49%
2.3 Liquidity
A Current Ratio of 2.11 indicates that QFIN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.11, QFIN is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
QFIN has a Quick Ratio of 2.11. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN has a better Quick ratio (2.11) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The earnings per share for QFIN have decreased strongly by -11.63% in the last year.
The Earnings Per Share has been growing slightly by 3.42% on average over the past years.
QFIN shows a decrease in Revenue. In the last year, the revenue decreased by -8.02%.
QFIN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.65% yearly.
EPS 1Y (TTM)-11.63%
EPS 3Y3.42%
EPS 5YN/A
EPS growth Q2Q11.11%
Revenue 1Y (TTM)-8.02%
Revenue growth 3Y6.29%
Revenue growth 5Y29.65%
Revenue growth Q2Q3.3%
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 10.84% on average per year.
The Revenue is expected to grow by 5.31% on average over the next years.
EPS Next Y17.61%
EPS Next 2Y15.9%
EPS Next 3Y10.84%
EPS Next 5YN/A
Revenue Next Year4.03%
Revenue Next 2Y3.6%
Revenue Next 3Y5.31%
Revenue Next 5YN/A
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 accelerating.
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
A Price/Earnings ratio of 5.48 indicates a rather cheap valuation of QFIN.
Based on the Price/Earnings ratio, QFIN is valued a bit cheaper than 78.43% of the companies in the same industry.
QFIN is valuated cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.41, which indicates a rather cheap valuation of QFIN.
Based on the Price/Forward Earnings ratio, QFIN is valued cheaper than 96.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QFIN to the average of the S&P500 Index (20.88), we can say QFIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 4.41 |
4.2 Price Multiples
QFIN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. QFIN is cheaper than 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.48 | ||
| EV/EBITDA | N/A |
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.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y15.9%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.33%, QFIN is a good candidate for dividend investing.
QFIN's Dividend Yield is rather good when compared to the industry average which is at 4.26. QFIN pays more dividend than 88.24% of the companies in the same industry.
QFIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.33% |
5.2 History
QFIN has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y15.9%
EPS Next 3Y10.84%
QIFU TECHNOLOGY INC
NASDAQ:QFIN (5/3/2024, 7:14:28 PM)
After market: 19.5 0 (0%)19.5
-0.38 (-1.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.48 | ||
| Fwd PE | 4.41 | ||
| 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)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.79% | ||
| ROE | 19.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.8% | ||
| PM (TTM) | 25.77% | ||
| GM | 83.99% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| 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)-11.63%
EPS 3Y3.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.02%
Revenue growth 3Y6.29%
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