QFIN HOLDINGS INC-ADR (QFIN) Stock Fundamental Analysis
USA - NASDAQ:QFIN - US88557W1018 - ADR
25.5 USD
-0.06 (-0.23%)
25.7152 USD
+0.22 (+0.84%)
We assign a fundamental rating of 8 out of 10 to QFIN. QFIN was compared to 55 industry peers in the Consumer Finance industry. QFIN gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on QFIN. These ratings could make QFIN a good candidate 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
With an excellent Return On Assets value of 12.14%, QFIN belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
QFIN has a better Return On Equity (30.15%) than 90.91% of its industry peers.
With an excellent Return On Invested Capital value of 14.53%, QFIN belongs to the best of the industry, outperforming 87.27% 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 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 30.15% | ||
| ROIC | 14.53% |
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 38.67% is amongst the best of the industry. QFIN outperforms 94.55% of its industry peers.
QFIN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 44.19%, QFIN belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
In the last couple of years the Operating Margin of QFIN has grown nicely.
QFIN has a better Gross Margin (84.34%) than 78.18% 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 | 44.19% | ||
| PM (TTM) | 38.67% | ||
| GM | 84.34% |
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.
The debt/assets ratio for QFIN is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of QFIN is 0.58, which is an excellent value as it means it would take QFIN, only 0.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of QFIN (0.58) is better than 94.55% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that QFIN is not too dependend on debt financing.
QFIN has a Debt to Equity ratio of 0.26. This is amongst the best in the industry. QFIN outperforms 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.67
WACC8.72%
2.3 Liquidity
A Current Ratio of 3.48 indicates that QFIN has no problem at all paying its short term obligations.
QFIN's Current ratio of 3.48 is amongst the best of the industry. QFIN outperforms 81.82% of its industry peers.
A Quick Ratio of 3.48 indicates that QFIN has no problem at all paying its short term obligations.
QFIN has a Quick ratio of 3.48. This is amongst the best in the industry. QFIN outperforms 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.02% over the past year.
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 grown by 9.77% in the past year. This is quite good.
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)71.02%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%48.8%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%25.38%
3.2 Future
The Earnings Per Share is expected to grow by 16.80% on average over the next years. This is quite good.
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 Y24.23%
EPS Next 2Y18.68%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue Next Year16.47%
Revenue Next 2Y11.15%
Revenue Next 3Y10.32%
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.
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
A Price/Earnings ratio of 3.42 indicates a rather cheap valuation of QFIN.
Based on the Price/Earnings ratio, QFIN is valued cheaply inside the industry as 94.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of QFIN to the average of the S&P500 Index (27.77), we can say QFIN is valued rather cheaply.
QFIN is valuated cheaply with a Price/Forward Earnings ratio of 3.02.
Based on the Price/Forward Earnings ratio, QFIN is valued cheaper than 94.55% of the companies in the same industry.
QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.42 | ||
| Fwd PE | 3.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.35 | ||
| EV/EBITDA | 1.83 |
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.
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 16.80% in the coming years.
PEG (NY)0.14
PEG (5Y)0.17
EPS Next 2Y18.68%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.69%, QFIN is a good candidate for dividend investing.
In the last 3 months the price of QFIN has falen by -27.50%. 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 rather good when compared to the industry average which is at 4.81. QFIN pays more dividend than 81.82% of the companies in the same industry.
QFIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
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 2Y18.68%
EPS Next 3Y16.8%
25.5
-0.06 (-0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners81.29%
Inst Owner Change0.36%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.58B
Analysts86.32
Price Target51.77 (103.02%)
Short Float %7.37%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
Yearly Dividend1.12
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)3.59%
Min EPS beat(2)1.23%
Max EPS beat(2)5.95%
EPS beat(4)4
Avg EPS beat(4)9.4%
Min EPS beat(4)1.23%
Max EPS beat(4)20.96%
EPS beat(8)7
Avg EPS beat(8)9.43%
EPS beat(12)7
Avg EPS beat(12)4.39%
EPS beat(16)10
Avg EPS beat(16)5.49%
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)-1.3%
PT rev (3m)-4.98%
EPS NQ rev (1m)-9.3%
EPS NQ rev (3m)-9.3%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)5.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.42 | ||
| Fwd PE | 3.02 | ||
| P/S | 1.36 | ||
| P/FCF | 2.35 | ||
| P/OCF | 2.35 | ||
| P/B | 1.06 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 1.83 |
EPS(TTM)7.46
EY29.25%
EPS(NY)8.45
Fwd EY33.15%
FCF(TTM)10.86
FCFY42.57%
OCF(TTM)10.86
OCFY42.57%
SpS18.77
BVpS24.07
TBVpS23.07
PEG (NY)0.14
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 30.15% | ||
| ROCE | 18.76% | ||
| ROIC | 14.53% | ||
| ROICexc | 18.71% | ||
| ROICexgc | 19.25% | ||
| OM | 44.19% | ||
| PM (TTM) | 38.67% | ||
| GM | 84.34% | ||
| FCFM | 57.84% |
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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 129.72% | ||
| Profit Quality | 149.6% | ||
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 | ||
| Altman-Z | N/A |
F-Score6
WACC8.72%
ROIC/WACC1.67
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 Y24.23%
EPS Next 2Y18.68%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue 1Y (TTM)9.77%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%25.38%
Revenue Next Year16.47%
Revenue Next 2Y11.15%
Revenue Next 3Y10.32%
Revenue Next 5Y8.48%
EBIT growth 1Y37.77%
EBIT growth 3Y3.52%
EBIT growth 5Y21.07%
EBIT Next Year8.28%
EBIT Next 3Y8.21%
EBIT Next 5Y8.32%
FCF growth 1Y57.1%
FCF growth 3Y16.75%
FCF growth 5Y25.49%
OCF growth 1Y57.1%
OCF growth 3Y17.3%
OCF growth 5Y25.74%