NASDAQ:QFIN stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Sep 16, 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.

Unpacking NASDAQ:QFIN's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:QFIN has earned a 8 for valuation:

With a Price/Earnings ratio of 5.73, the valuation of QFIN can be described as very cheap.
Based on the Price/Earnings ratio, QFIN is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
QFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.52.
A Price/Forward Earnings ratio of 4.43 indicates a rather cheap valuation of QFIN.
QFIN's Price/Forward Earnings ratio is rather cheap when compared to the industry. QFIN is cheaper than 86.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QFIN to the average of the S&P500 Index (21.99), we can say QFIN is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaper than 84.62% 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.
QFIN's earnings are expected to grow with 19.12% in the coming years. This may justify a more expensive valuation.

Profitability Assessment of 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 10.21%, QFIN belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.26%, QFIN belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.97%, QFIN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QFIN is significantly above the industry average of 7.17%.
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.
QFIN has a Operating Margin of 35.21%. This is amongst the best in the industry. QFIN outperforms 96.15% of its industry peers.
QFIN's Gross Margin of 83.44% is amongst the best of the industry. QFIN outperforms 82.69% of its industry peers.

Health Examination 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 7 for health provides valuable insights:

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 Debt to FCF ratio of 0.14. This is amongst the best in the industry. QFIN outperforms 94.23% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, QFIN belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
A Current Ratio of 2.45 indicates that QFIN has no problem at all paying its short term obligations.
The Current ratio of QFIN (2.45) is better than 75.00% of its industry peers.
QFIN has a Quick Ratio of 2.45. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN's Quick ratio of 2.45 is fine compared to the rest of the industry. QFIN outperforms 76.92% of its industry peers.

How We Gauge Growth for NASDAQ:QFIN

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:QFIN, the assigned 7 reflects its growth potential:

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.
QFIN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.65% yearly.
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.
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.

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

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.