NASDAQ:QFIN is an undervalued gem with solid fundamentals.

Last update: Aug 23, 2024

Uncover the hidden value in QIFU TECHNOLOGY INC (NASDAQ:QFIN) as our stock screening tool recommends it as an undervalued choice. NASDAQ:QFIN maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

A Closer Look at Valuation for NASDAQ:QFIN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:QFIN boasts a 8 out of 10:

A Price/Earnings ratio of 5.78 indicates a rather cheap valuation of QFIN.
Compared to the rest of the industry, the Price/Earnings ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 82.69% 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 29.64.
A Price/Forward Earnings ratio of 4.48 indicates a rather cheap valuation of QFIN.
Based on the Price/Forward Earnings ratio, QFIN is valued cheaper than 86.54% of the companies in the same industry.
QFIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.00.
86.54% of the companies in the same industry are more expensive than QFIN, based on the Enterprise Value to EBITDA ratio.
The 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 19.12% in the coming years.

Evaluating Profitability: NASDAQ:QFIN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:QFIN has earned a 8 out of 10:

The Return On Assets of QFIN (10.21%) is better than 92.31% of its industry peers.
QFIN has a Return On Equity of 21.26%. This is amongst the best in the industry. QFIN outperforms 86.54% of its industry peers.
QFIN's Return On Invested Capital of 15.97% is amongst the best of the industry. QFIN outperforms 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 7.23%.
QFIN has a Profit Margin of 28.08%. This is amongst the best in the industry. QFIN outperforms 92.31% of its industry peers.
The Operating Margin of QFIN (35.21%) is better than 96.15% of its industry peers.
Looking at the Gross Margin, with a value of 83.44%, QFIN belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.

Deciphering NASDAQ:QFIN's Health Rating

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 0.14. This is a very positive value and a sign of high solvency as it would only need 0.14 years to pay back of 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's Debt to Equity ratio of 0.05 is amongst the best of 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.
Looking at the Current ratio, with a value of 2.45, QFIN is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
A Quick Ratio of 2.45 indicates that QFIN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.45, QFIN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.

Growth Analysis for NASDAQ:QFIN

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:QFIN has earned a 7 for growth:

QFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.11%, which is quite impressive.
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.

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

Check the latest full fundamental report of QFIN for a complete fundamental analysis.

Disclaimer

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.