Despite its impressive fundamentals, NASDAQ:QFIN remains undervalued.

Last update: Jul 4, 2024

Discover QIFU TECHNOLOGY INC (NASDAQ:QFIN), an undervalued stock highlighted by our stock screener. NASDAQ:QFIN showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Understanding NASDAQ:QFIN's Valuation Score

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 9 reflects its valuation:

Based on the Price/Earnings ratio of 5.13, the valuation of QFIN can be described as very cheap.
Based on the Price/Earnings ratio, QFIN is valued cheaper than 90.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, QFIN is valued rather cheaply.
QFIN is valuated cheaply with a Price/Forward Earnings ratio of 4.18.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 90.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, QFIN is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than 63.46% of the companies in the same industry.
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.
A more expensive valuation may be justified as QFIN's earnings are expected to grow with 13.58% in the coming years.

How do we evaluate the Profitability for NASDAQ:QFIN?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:QFIN, the assigned 9 is a significant indicator of profitability:

With an excellent Return On Assets value of 9.52%, QFIN belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
With an excellent Return On Equity value of 20.46%, QFIN belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
The Return On Invested Capital of QFIN (15.21%) is better than 94.23% 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 7.15%.
The last Return On Invested Capital (15.21%) 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.
Looking at the Profit Margin, with a value of 26.81%, QFIN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Operating Margin of QFIN (30.95%) is better than 92.31% of its industry peers.
Looking at the Gross Margin, with a value of 83.64%, QFIN belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.

Health Analysis for NASDAQ:QFIN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:QFIN was assigned a score of 7 for health:

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 92.31% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that QFIN is not too dependend on debt financing.
QFIN's Debt to Equity ratio of 0.03 is amongst the best of the industry. QFIN outperforms 84.62% of its industry peers.
QFIN has a Current Ratio of 2.12. 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 2.12, QFIN is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
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.
QFIN has a Quick ratio of 2.12. This is in the better half of the industry: QFIN outperforms 63.46% of its industry peers.

Growth Examination for NASDAQ:QFIN

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:QFIN was assigned a score of 6 for growth:

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.
The Earnings Per Share is expected to grow by 13.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
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.

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

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.