In a market where value is scarce, NASDAQ:QFIN offers a refreshing opportunity with its solid fundamentals.

Last update: May 10, 2024

Consider QIFU TECHNOLOGY INC (NASDAQ:QFIN) as a top value stock, identified by our stock screening tool. NASDAQ:QFIN shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

A Closer Look at Valuation for NASDAQ:QFIN

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:QFIN, the assigned 8 reflects its valuation:

The Price/Earnings ratio is 5.85, which indicates a rather cheap valuation of QFIN.
QFIN's Price/Earnings ratio is rather cheap when compared to the industry. QFIN is cheaper than 80.39% 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 28.31.
With a Price/Forward Earnings ratio of 4.72, the valuation of QFIN can be described as very cheap.
Based on the Price/Forward Earnings ratio, QFIN is valued cheaply inside the industry as 96.08% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of QFIN to the average of the S&P500 Index (20.48), we can say QFIN is valued rather cheaply.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than 62.75% of the companies in the same industry.
The 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.

How do we evaluate the Profitability for NASDAQ:QFIN?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:QFIN has achieved a 8:

With an excellent Return On Assets value of 8.79%, QFIN belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
QFIN has a Return On Equity of 19.22%. This is amongst the best in the industry. QFIN outperforms 86.27% of its industry peers.
QFIN's Return On Invested Capital of 13.45% is amongst the best of the industry. QFIN outperforms 96.08% of its industry peers.
QFIN had an Average Return On Invested Capital over the past 3 years of 19.66%. This is significantly above the industry average of 6.57%.
The last Return On Invested Capital (13.45%) for QFIN is well below the 3 year average (19.66%), which needs to be investigated, but indicates that QFIN had better years and this may not be a problem.
With an excellent Profit Margin value of 25.77%, QFIN belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
The Operating Margin of QFIN (28.80%) is better than 88.24% of its industry peers.
With an excellent Gross Margin value of 83.99%, QFIN belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.

Assessing Health for NASDAQ:QFIN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:QFIN, the assigned 6 for health provides valuable insights:

The Debt to FCF ratio of QFIN is 0.12, which is an excellent value as it means it would take QFIN, only 0.12 years of fcf income to pay off all of its debts.
QFIN has a better Debt to FCF ratio (0.12) than 94.12% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that QFIN is not too dependend on debt financing.
QFIN has a better Debt to Equity ratio (0.04) than 86.27% of its industry peers.
QFIN has a Current Ratio of 2.11. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN's Current ratio of 2.11 is fine compared to the rest of the industry. QFIN outperforms 64.71% of its industry peers.
A Quick Ratio of 2.11 indicates that QFIN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.11, QFIN is in the better half of the industry, outperforming 64.71% of the companies in the same industry.

How We Gauge Growth for NASDAQ:QFIN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:QFIN has achieved a 5 out of 10:

Measured over the past years, QFIN shows a very strong growth in Revenue. The Revenue has been growing by 29.65% on average per year.
Based on estimates for the next years, QFIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.84% on average per year.
Based on estimates for the next years, QFIN will show a quite strong growth in Revenue. The Revenue will grow by 8.18% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of QFIN contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.