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. QFIN gets an excellent profitability rating and is at the same time showing great financial health properties. QFIN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, QFIN could be worth investigating further 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.
QFIN had positive earnings in each of the past 5 years.
In the past 5 years QFIN always reported a positive cash flow from operatings.
1.2 Ratios
QFIN's Return On Assets of 13.01% is amongst the best of the industry. QFIN outperforms 90.38% of its industry peers.
Looking at the Return On Equity, with a value of 25.90%, QFIN belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.81%, QFIN belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QFIN is significantly above the industry average of 9.60%.
The last Return On Invested Capital (18.81%) for QFIN is above the 3 year average (16.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.01% | ||
| ROE | 25.9% | ||
| ROIC | 18.81% |
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's Profit Margin of 36.49% is amongst the best of the industry. QFIN outperforms 98.08% of its industry peers.
In the last couple of years the Profit Margin of QFIN has grown nicely.
Looking at the Operating Margin, with a value of 43.86%, QFIN belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Operating Margin of QFIN has grown nicely.
Looking at the Gross Margin, with a value of 83.10%, QFIN is in the better half of the industry, outperforming 78.85% 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 | 43.86% | ||
| PM (TTM) | 36.49% | ||
| GM | 83.1% |
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
QFIN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, QFIN has a worse debt to assets ratio.
2.2 Solvency
QFIN has an Altman-Z score of 3.22. This indicates that QFIN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.22, QFIN belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
QFIN has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
QFIN has a better Debt to FCF ratio (0.15) than 92.31% of its industry peers.
QFIN has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of QFIN (0.06) is better than 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 3.22 |
ROIC/WACC2.55
WACC7.39%
2.3 Liquidity
QFIN has a Current Ratio of 2.45. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.45, QFIN is doing good in the industry, outperforming 73.08% of the companies in the same industry.
A Quick Ratio of 2.45 indicates that QFIN has no problem at all paying its short term obligations.
QFIN has a Quick ratio of 2.45. This is in the better half of the industry: QFIN outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.24% over the past year.
The Earnings Per Share has been growing by 19.96% on average over the past years. This is quite good.
QFIN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.38%.
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)65.24%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%65.59%
Revenue 1Y (TTM)5.38%
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.
Based on estimates for the next years, QFIN will show a quite strong growth in Revenue. The Revenue will grow by 8.48% on average per year.
EPS Next Y23.67%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
EPS Next 5YN/A
Revenue Next Year7.53%
Revenue Next 2Y7.44%
Revenue Next 3Y7.5%
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 6.43 indicates a rather cheap valuation of QFIN.
Based on the Price/Earnings ratio, QFIN is valued cheaper than 84.62% of the companies in the same industry.
QFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 5.08, which indicates a rather cheap valuation of QFIN.
86.54% of the companies in the same industry are more expensive than QFIN, based on the Price/Forward Earnings ratio.
QFIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 5.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.69 | ||
| EV/EBITDA | 4.32 |
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 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 2.91%.
Compared to an average industry Dividend Yield of 4.26, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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
20.16% of the earnings are spent on dividend by QFIN. This is a low number and sustainable payout ratio.
DP20.16%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
42.51
-0.98 (-2.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners70.1%
Inst Owner Change7.29%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.96B
Analysts86.67
Price Target54.11 (27.29%)
Short Float %8.41%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend1.2
Dividend Growth(5Y)N/A
DP20.16%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.21%
Min EPS beat(2)9.46%
Max EPS beat(2)20.96%
EPS beat(4)4
Avg EPS beat(4)14.86%
Min EPS beat(4)3.79%
Max EPS beat(4)25.25%
EPS beat(8)5
Avg EPS beat(8)8.02%
EPS beat(12)6
Avg EPS beat(12)3.64%
EPS beat(16)10
Avg EPS beat(16)11.3%
Revenue beat(2)2
Avg Revenue beat(2)3.24%
Min Revenue beat(2)3.02%
Max Revenue beat(2)3.47%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-3.35%
Max Revenue beat(4)3.47%
Revenue beat(8)5
Avg Revenue beat(8)1.83%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.81%
PT rev (3m)27.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.59%
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)0.22%
Revenue NY rev (3m)3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.43 | ||
| Fwd PE | 5.08 | ||
| P/S | 2.51 | ||
| P/FCF | 4.69 | ||
| P/OCF | 4.61 | ||
| P/B | 1.78 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)6.61
EY15.55%
EPS(NY)8.37
Fwd EY19.68%
FCF(TTM)9.05
FCFY21.3%
OCF(TTM)9.22
OCFY21.7%
SpS16.95
BVpS23.88
TBVpS22.88
PEG (NY)0.27
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.01% | ||
| ROE | 25.9% | ||
| ROCE | 24.55% | ||
| ROIC | 18.81% | ||
| ROICexc | 24.91% | ||
| ROICexgc | 26% | ||
| OM | 43.86% | ||
| PM (TTM) | 36.49% | ||
| GM | 83.1% | ||
| FCFM | 53.43% |
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-Score8
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.18 | ||
| Cap/Depr | 228.22% | ||
| Cap/Sales | 1% | ||
| Interest Coverage | 405.09 | ||
| Cash Conversion | 122.88% | ||
| Profit Quality | 146.42% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z | 3.22 |
F-Score8
WACC7.39%
ROIC/WACC2.55
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)65.24%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%65.59%
EPS Next Y23.67%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
EPS Next 5YN/A
Revenue 1Y (TTM)5.38%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%12.28%
Revenue Next Year7.53%
Revenue Next 2Y7.44%
Revenue Next 3Y7.5%
Revenue Next 5Y8.48%
EBIT growth 1Y55.01%
EBIT growth 3Y3.52%
EBIT growth 5Y21.07%
EBIT Next Year2.37%
EBIT Next 3Y8.21%
EBIT Next 5Y8.32%
FCF growth 1Y30.79%
FCF growth 3Y16.75%
FCF growth 5Y25.49%
OCF growth 1Y31.26%
OCF growth 3Y17.3%
OCF growth 5Y25.74%