QIFU TECHNOLOGY INC (QFIN) Stock Fundamental Analysis
NASDAQ:QFIN - Nasdaq - US88557W1018 - ADR - Currency: USD
We assign a fundamental rating of 8 out of 10 to QFIN. QFIN was compared to 53 industry peers in the Consumer Finance industry. QFIN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. QFIN is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make QFIN suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
QFIN had positive earnings in the past year.
QFIN had a positive operating cash flow in the past year.
Each year in the past 5 years QFIN has been profitable.
Each year in the past 5 years QFIN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.40%, QFIN belongs to the top of the industry, outperforming 92.45% of the companies in the same industry.
With an excellent Return On Equity value of 29.92%, QFIN belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.09%, QFIN belongs to the best of the industry, outperforming 86.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QFIN is significantly above the industry average of 10.37%.
| 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
QFIN has a Profit Margin of 38.98%. This is amongst the best in the industry. QFIN outperforms 96.23% of its industry peers.
QFIN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 45.98%, QFIN belongs to the best of the industry, outperforming 96.23% of the companies in the same industry.
QFIN's Operating Margin has improved in the last couple of years.
QFIN has a better Gross Margin (83.74%) than 79.25% 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.
QFIN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, QFIN has less shares outstanding
QFIN has a worse debt/assets ratio than last year.
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 92.45% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that QFIN is not too dependend on debt financing.
The Debt to Equity ratio of QFIN (0.27) is better than 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC2.52
WACC6.39%
2.3 Liquidity
A Current Ratio of 3.08 indicates that QFIN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.08, QFIN belongs to the top of the industry, outperforming 83.02% of the companies in the same industry.
QFIN has a Quick Ratio of 3.08. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN's Quick ratio of 3.08 is amongst the best of the industry. QFIN outperforms 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.63% 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 5.10%.
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)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
QFIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.29% 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 Y26.86%
EPS Next 2Y21.58%
EPS Next 3Y19.29%
EPS Next 5YN/A
Revenue Next Year10.08%
Revenue Next 2Y8.21%
Revenue Next 3Y8.2%
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
A Price/Earnings ratio of 4.97 indicates a rather cheap valuation of QFIN.
QFIN's Price/Earnings ratio is rather cheap when compared to the industry. QFIN is cheaper than 88.68% of the companies in the same industry.
QFIN is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 3.83, 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 88.68% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. QFIN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 3.83 |
4.2 Price Multiples
QFIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QFIN is cheaper than 86.79% of the companies in the same industry.
71.70% 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 | 3.33 | ||
| EV/EBITDA | 3.28 |
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 19.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)0.25
EPS Next 2Y21.58%
EPS Next 3Y19.29%
5. Dividend
5.1 Amount
QFIN has a Yearly Dividend Yield of 3.73%.
The stock price of QFIN dropped by -21.78% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
QFIN's Dividend Yield is a higher than the industry average which is at 4.08.
QFIN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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 2Y21.58%
EPS Next 3Y19.29%
33.65
-0.68 (-1.98%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.53%
Inst Owner Change-1.25%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.72B
Analysts86.67
Price Target54.48 (61.9%)
Short Float %8.84%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend1.19
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%
PT rev (3m)5.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 3.83 | ||
| P/S | 1.92 | ||
| P/FCF | 3.33 | ||
| P/OCF | 3.33 | ||
| P/B | 1.47 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 3.28 |
EPS(TTM)6.77
EY20.12%
EPS(NY)8.78
Fwd EY26.1%
FCF(TTM)10.09
FCFY30%
OCF(TTM)10.09
OCFY30%
SpS17.54
BVpS22.85
TBVpS22.79
PEG (NY)0.19
PEG (5Y)0.25
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
WACC6.39%
ROIC/WACC2.52
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 Y26.86%
EPS Next 2Y21.58%
EPS Next 3Y19.29%
EPS Next 5YN/A
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%12.28%
Revenue Next Year10.08%
Revenue Next 2Y8.21%
Revenue Next 3Y8.2%
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%