Investors should take note of NASDAQ:QFIN, a growth stock that remains attractively priced.

Our stock screener has spotted QIFU TECHNOLOGY INC (NASDAQ:QFIN) as a growth stock which is not overvalued. NASDAQ:QFIN is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Growth Analysis 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 7 out of 10:

• The Earnings Per Share has grown by an impressive 24.11% over the past year.
• Looking at the last year, QFIN shows a quite strong growth in Revenue. The Revenue has grown by 9.80% in the last 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 19.12% yearly.
• QFIN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.18% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NASDAQ:QFIN's Valuation Score

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:QFIN scores a 8 out of 10:

• Based on the Price/Earnings ratio of 5.70, the valuation of QFIN can be described as very cheap.
• QFIN's Price/Earnings ratio is rather cheap when compared to the industry. QFIN is cheaper than 82.69% of the companies in the same industry.
• When comparing the Price/Earnings ratio of QFIN to the average of the S&P500 Index (29.81), we can say QFIN is valued rather cheaply.
• QFIN is valuated cheaply with a Price/Forward Earnings ratio of 4.42.
• QFIN's Price/Forward Earnings ratio is rather cheap when compared to the industry. QFIN is cheaper than 90.38% of the companies in the same industry.
• QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.06, which is the current average of the S&P500 Index.
• 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.
• 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.
• A more expensive valuation may be justified as QFIN's earnings are expected to grow with 19.12% in the coming years.

How We Gauge Health 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:

• The Debt to FCF ratio of QFIN is 0.14, which is an excellent value as it means it would take QFIN, only 0.14 years of fcf income to pay off all of its debts.
• QFIN has a better Debt to FCF ratio (0.14) than 92.31% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
• QFIN has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. QFIN outperforms 84.62% of its industry peers.
• 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.
• The Current ratio of QFIN (2.45) is better than 73.08% of its industry peers.
• A Quick Ratio of 2.45 indicates that QFIN has no problem at all paying its short term obligations.
• The Quick ratio of QFIN (2.45) is better than 75.00% of its industry peers.

Profitability Analysis for NASDAQ:QFIN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:QFIN, the assigned 8 is noteworthy for profitability:

• QFIN's Return On Assets of 10.21% is amongst the best of the industry. QFIN outperforms 92.31% of its industry peers.
• QFIN's Return On Equity of 21.26% is amongst the best of the industry. QFIN outperforms 86.54% of its industry peers.
• QFIN has a better Return On Invested Capital (15.97%) 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 7.20%.
• Looking at the Profit Margin, with a value of 28.08%, QFIN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• The Operating Margin of QFIN (35.21%) is better than 96.15% of its industry peers.
• The Gross Margin of QFIN (83.44%) is better than 82.69% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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.