Investors seeking growth at a reasonable cost should explore NASDAQ:QFIN.

Last update: Nov 14, 2024

Uncover the potential of QIFU TECHNOLOGY INC (NASDAQ:QFIN), a growth stock that our stock screener found to be reasonably priced. NASDAQ:QFIN is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Assessing 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 8 out of 10:

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.
The Revenue has grown by 9.80% in the past year. This is quite good.
The Revenue has been growing by 29.65% on average over the past years. This is a very strong growth!
QFIN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.77% yearly.
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.

Assessing Valuation for NASDAQ:QFIN

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:

QFIN is valuated cheaply with a Price/Earnings ratio of 7.04.
Based on the Price/Earnings ratio, QFIN is valued a bit cheaper than the industry average as 76.47% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.10, QFIN is valued rather cheaply.
A Price/Forward Earnings ratio of 5.29 indicates a rather cheap valuation of QFIN.
86.27% of the companies in the same industry are more expensive than QFIN, based on the Price/Forward Earnings ratio.
QFIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 86.27% of the companies listed in the same industry.
62.75% of the companies in the same industry are more expensive than QFIN, based on the Price/Free Cash Flow 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.
QFIN's earnings are expected to grow with 20.77% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NASDAQ:QFIN

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:QFIN, the assigned 7 reflects its health status:

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.
Looking at the Debt to FCF ratio, with a value of 0.14, QFIN belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
The Debt to Equity ratio of QFIN (0.05) is better than 86.27% 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.
With a decent Current ratio value of 2.45, QFIN is doing good in the industry, outperforming 76.47% of the companies in the same industry.
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 has a better Quick ratio (2.45) than 78.43% of its industry peers.

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 8 out of 10:

Looking at the Return On Assets, with a value of 10.21%, QFIN belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
With an excellent Return On Equity value of 21.26%, QFIN belongs to the best of the industry, outperforming 84.31% 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 92.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QFIN is significantly above the industry average of 7.45%.
The Profit Margin of QFIN (28.08%) is better than 92.16% of its industry peers.
With an excellent Operating Margin value of 35.21%, QFIN belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
QFIN's Gross Margin of 83.44% is amongst the best of the industry. QFIN outperforms 82.35% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.