For those who appreciate value investing, NASDAQ:QFIN is a compelling option with its solid fundamentals.

Last update: Jun 7, 2024

Our stock screening tool has pinpointed QIFU TECHNOLOGY INC (NASDAQ:QFIN) as an undervalued stock option. NASDAQ:QFIN retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Examination for NASDAQ:QFIN

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:QFIN was assigned a score of 9 for valuation:

Based on the Price/Earnings ratio of 5.05, the valuation of QFIN can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 88.24% of the companies listed in the same industry.
QFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.21.
A Price/Forward Earnings ratio of 3.96 indicates a rather cheap valuation of QFIN.
94.12% of the companies in the same industry are more expensive than QFIN, based on the Price/Forward Earnings ratio.
QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaper than 86.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
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.

Profitability Insights: NASDAQ:QFIN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:QFIN scores a 9 out of 10:

The Return On Assets of QFIN (9.52%) is better than 94.12% of its industry peers.
QFIN has a Return On Equity of 20.46%. This is amongst the best in the industry. QFIN outperforms 90.20% of its industry peers.
With an excellent Return On Invested Capital value of 15.21%, QFIN belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
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 3 year average ROIC (19.66%) for QFIN is well above the current ROIC(15.21%). The reason for the recent decline needs to be investigated.
The Profit Margin of QFIN (26.81%) is better than 92.16% of its industry peers.
With an excellent Operating Margin value of 30.95%, QFIN belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
QFIN's Gross Margin of 83.64% is amongst the best of the industry. QFIN outperforms 82.35% of its industry peers.

Health Analysis for NASDAQ:QFIN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:QFIN has earned a 7 out of 10:

QFIN has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of all of its debts.
The Debt to FCF ratio of QFIN (0.09) is better than 94.12% of its industry peers.
QFIN has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
QFIN's Debt to Equity ratio of 0.03 is amongst the best of the industry. QFIN outperforms 86.27% of its industry peers.
A Current Ratio of 2.12 indicates that QFIN has no problem at all paying its short term obligations.
QFIN's Current ratio of 2.12 is fine compared to the rest of the industry. QFIN outperforms 64.71% of its industry peers.
QFIN has a Quick Ratio of 2.12. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.12, QFIN is in the better half of the industry, outperforming 64.71% of the companies in the same industry.

How do we evaluate the Growth for NASDAQ:QFIN?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:QFIN scores a 6 out of 10:

The Earnings Per Share has grown by an nice 17.78% over the past year.
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.
QFIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.02% yearly.
QFIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.18% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of QFIN

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.