QFIN HOLDINGS INC-ADR (QFIN) Stock Fundamental Analysis
USA - NASDAQ:QFIN - US88557W1018 - ADR
29.75 USD
0 (0%)
30.07 USD
+0.32 (+1.08%)
Taking everything into account, QFIN scores 8 out of 10 in our fundamental rating. 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. 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.
In the past 5 years QFIN has always 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 12.14%, QFIN belongs to the top 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.
QFIN's Return On Invested Capital of 14.53% is amongst the best of the industry. QFIN outperforms 87.27% 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 11.02%.
| 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 has a better Profit Margin (38.67%) than 94.55% of its industry peers.
QFIN's Profit Margin has improved in the last couple of years.
The Operating Margin of QFIN (44.19%) is better than 94.55% of its industry peers.
In the last couple of years the Operating Margin of QFIN has grown nicely.
QFIN's Gross Margin of 84.34% is fine compared to the rest of the industry. QFIN outperforms 78.18% of its industry peers.
QFIN's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QFIN is still creating some value.
The number of shares outstanding for QFIN has been reduced compared to 1 year ago.
QFIN has less shares outstanding than it did 5 years ago.
QFIN has a worse debt/assets ratio than last year.
2.2 Solvency
QFIN has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
QFIN has a Debt to FCF ratio of 0.58. This is amongst the best in the industry. QFIN outperforms 92.73% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that QFIN is not too dependend on debt financing.
QFIN has a better Debt to Equity ratio (0.26) than 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | N/A |
ROIC/WACC1.59
WACC9.15%
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.
QFIN has a Quick Ratio of 3.48. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of QFIN (3.48) is better than 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.
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.
Looking at the last year, QFIN shows a quite strong growth in Revenue. The Revenue has grown by 9.77% in the last year.
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)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.
QFIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.48% yearly.
EPS Next Y24.23%
EPS Next 2Y18.68%
EPS Next 3Y16.8%
EPS Next 5YN/A
Revenue Next Year16.69%
Revenue Next 2Y11.35%
Revenue Next 3Y10.2%
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
The Price/Earnings ratio is 3.98, which indicates a rather cheap valuation of QFIN.
94.55% of the companies in the same industry are more expensive than QFIN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of QFIN to the average of the S&P500 Index (27.67), we can say QFIN is valued rather cheaply.
The Price/Forward Earnings ratio is 3.52, which indicates a rather cheap valuation of QFIN.
90.91% 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 (23.13), we can say QFIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.98 | ||
| Fwd PE | 3.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaper than 87.27% of the companies in the same industry.
81.82% 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 | 2.74 | ||
| EV/EBITDA | 2.33 |
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.
QFIN's earnings are expected to grow with 16.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)0.2
EPS Next 2Y18.68%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
QFIN has a Yearly Dividend Yield of 4.72%, which is a nice return.
In the last 3 months the price of QFIN has falen by -30.99%. 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 a higher than the industry average which is at 4.31.
Compared to an average S&P500 Dividend Yield of 2.41, QFIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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%
29.75
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners81.29%
Inst Owner Change-5.43%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.17B
Analysts86.32
Price Target52.45 (76.3%)
Short Float %7.37%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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)-0.31%
PT rev (3m)-3.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.9%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.93%
Revenue NY rev (3m)6.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.98 | ||
| Fwd PE | 3.52 | ||
| P/S | 1.58 | ||
| P/FCF | 2.74 | ||
| P/OCF | 2.74 | ||
| P/B | 1.24 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 2.33 |
EPS(TTM)7.47
EY25.11%
EPS(NY)8.46
Fwd EY28.42%
FCF(TTM)10.86
FCFY36.5%
OCF(TTM)10.86
OCFY36.5%
SpS18.77
BVpS24.08
TBVpS23.08
PEG (NY)0.16
PEG (5Y)0.2
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
WACC9.15%
ROIC/WACC1.59
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 Year16.69%
Revenue Next 2Y11.35%
Revenue Next 3Y10.2%
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%