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. A decent growth rate in combination with a cheap valuation! Better keep an eye on QFIN. These ratings would make QFIN suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year QFIN was profitable.
QFIN had a positive operating cash flow in the past year.
QFIN had positive earnings in each of the past 5 years.
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 13.01%, QFIN belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
QFIN has a Return On Equity of 25.90%. This is amongst the best in the industry. QFIN outperforms 86.54% of its industry peers.
The Return On Invested Capital of QFIN (18.81%) is better than 90.38% 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 9.28%.
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
Looking at the Profit Margin, with a value of 36.49%, QFIN belongs to the top of the industry, outperforming 98.08% of the companies in the same industry.
In the last couple of years the Profit Margin of QFIN has grown nicely.
The Operating Margin of QFIN (43.86%) is better than 96.15% of its industry peers.
In the last couple of years the Operating Margin of QFIN has grown nicely.
QFIN has a better Gross Margin (83.10%) than 78.85% of its industry peers.
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
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.
The number of shares outstanding for QFIN has been reduced compared to 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 3.21. This indicates that QFIN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of QFIN (3.21) is better than 84.62% of its industry peers.
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 94.23% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that QFIN is not too dependend on debt financing.
QFIN's Debt to Equity ratio of 0.06 is amongst the best of the industry. QFIN outperforms 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 3.21 |
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.
Looking at the Current ratio, with a value of 2.45, QFIN is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
QFIN has a Quick Ratio of 2.45. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of QFIN (2.45) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
QFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.05%, which is quite impressive.
QFIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
QFIN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.38%.
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)57.05%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%91.05%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%-0.29%
3.2 Future
The Earnings Per Share is expected to grow by 16.23% 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 Y23.67%
EPS Next 2Y18.86%
EPS Next 3Y16.24%
EPS Next 5YN/A
Revenue Next Year7.3%
Revenue Next 2Y7.43%
Revenue Next 3Y7.5%
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
QFIN is valuated cheaply with a Price/Earnings ratio of 7.20.
76.92% of the companies in the same industry are more expensive than QFIN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.21, QFIN is valued rather cheaply.
QFIN is valuated cheaply with a Price/Forward Earnings ratio of 5.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QFIN indicates a somewhat cheap valuation: QFIN is cheaper than 78.85% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.44. QFIN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 5.83 |
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.
65.38% 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 | 4.71 | ||
| EV/EBITDA | 4.26 |
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 16.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)0.36
EPS Next 2Y18.86%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
QFIN has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.50, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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%
42.56
-0.44 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners70.1%
Inst Owner Change4.63%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.97B
Analysts86.67
Price Target51.54 (21.1%)
Short Float %8.92%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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)12.14%
PT rev (3m)21.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.59%
EPS NY rev (1m)1.5%
EPS NY rev (3m)10.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 5.83 | ||
| P/S | 2.52 | ||
| P/FCF | 4.71 | ||
| P/OCF | 4.63 | ||
| P/B | 1.79 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 4.26 |
EPS(TTM)5.91
EY13.89%
EPS(NY)7.3
Fwd EY17.16%
FCF(TTM)9.03
FCFY21.22%
OCF(TTM)9.2
OCFY21.62%
SpS16.9
BVpS23.82
TBVpS22.82
PEG (NY)0.3
PEG (5Y)0.36
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 | 3.21 |
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)57.05%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%91.05%
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%-0.29%
Revenue Next Year7.3%
Revenue Next 2Y7.43%
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%