QIFU TECHNOLOGY INC (QFIN) Stock Fundamental Analysis
NASDAQ:QFIN - Nasdaq - US88557W1018 - ADR - Currency: USD
QFIN gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 52 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 may be a bit undervalued, certainly considering the very reasonable score on growth This makes QFIN very considerable 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.
In the past 5 years QFIN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.40%, QFIN belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
QFIN has a better Return On Equity (29.92%) than 90.38% of its industry peers.
QFIN has a better Return On Invested Capital (16.09%) than 86.54% 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 10.31%.
| 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
The Profit Margin of QFIN (38.98%) is better than 96.15% 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 96.15% of its industry peers.
In the last couple of years the Operating Margin of QFIN has grown nicely.
QFIN's Gross Margin of 83.74% is fine compared to the rest of the industry. QFIN outperforms 78.85% of its industry peers.
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
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.
Compared to 5 years ago, QFIN has less shares outstanding
The debt/assets ratio for QFIN is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of QFIN is 0.60, which is an excellent value as it means it would take QFIN, only 0.60 years of fcf income to pay off all of its debts.
QFIN has a better Debt to FCF ratio (0.60) than 90.38% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that QFIN is not too dependend on debt financing.
QFIN's Debt to Equity ratio of 0.27 is amongst the best of the industry. QFIN outperforms 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC2.37
WACC6.8%
2.3 Liquidity
A Current Ratio of 3.08 indicates that QFIN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.08, QFIN belongs to the best of the industry, outperforming 82.69% 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.
The Quick ratio of QFIN (3.08) is better than 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.
Measured over the past years, QFIN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.96% on average per year.
QFIN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
The Revenue has been growing by 13.24% on average over the past years. This is quite good.
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
Based on estimates for the next years, QFIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.77% 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 Y27.61%
EPS Next 2Y21.34%
EPS Next 3Y18.77%
EPS Next 5YN/A
Revenue Next Year10.02%
Revenue Next 2Y8.26%
Revenue Next 3Y8.4%
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.
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 6.35 indicates a rather cheap valuation of QFIN.
Compared to the rest of the industry, the Price/Earnings ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 84.62% of the companies listed in the same industry.
QFIN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.91, the valuation of QFIN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 86.54% of the companies listed in the same industry.
QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 4.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaper than 86.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.26 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
QFIN's 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 18.77% in the coming years.
PEG (NY)0.23
PEG (5Y)0.32
EPS Next 2Y21.34%
EPS Next 3Y18.77%
5. Dividend
5.1 Amount
QFIN has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.55, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 2Y21.34%
EPS Next 3Y18.77%
43.09
+0.26 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.53%
Inst Owner Change0.37%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.05B
Analysts86.67
Price Target54.48 (26.43%)
Short Float %9.36%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend1.2
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)6.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)3.18%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)1.58%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 4.91 | ||
| P/S | 2.45 | ||
| P/FCF | 4.26 | ||
| P/OCF | 4.26 | ||
| P/B | 1.88 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)6.79
EY15.76%
EPS(NY)8.77
Fwd EY20.36%
FCF(TTM)10.12
FCFY23.49%
OCF(TTM)10.12
OCFY23.49%
SpS17.58
BVpS22.91
TBVpS22.86
PEG (NY)0.23
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
WACC6.8%
ROIC/WACC2.37
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 Y27.61%
EPS Next 2Y21.34%
EPS Next 3Y18.77%
EPS Next 5YN/A
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%12.28%
Revenue Next Year10.02%
Revenue Next 2Y8.26%
Revenue Next 3Y8.4%
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%