NASDAQ:QFIN, an undervalued stock with good fundamentals.

Discover QIFU TECHNOLOGY INC (NASDAQ:QFIN)—an undervalued stock our stock screener has picked out. NASDAQ:QFIN demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

ChartMill's Evaluation of Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:QFIN was assigned a score of 8 for valuation:

• Based on the Price/Earnings ratio of 7.52, the valuation of QFIN can be described as very cheap.
• 78.43% of the companies in the same industry are more expensive than QFIN, based on the Price/Earnings ratio.
• QFIN is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
• A Price/Forward Earnings ratio of 5.65 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 82.35% of the companies in the same industry.
• QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.50, which is the current average of the S&P500 Index.
• QFIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QFIN is cheaper than 86.27% 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.
• 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 20.77% in the coming years.

Exploring NASDAQ:QFIN's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:QFIN was assigned a score of 8 for profitability:

• QFIN has a better Return On Assets (10.21%) than 92.16% of its industry peers.
• QFIN has a better Return On Equity (21.26%) than 84.31% of its industry peers.
• QFIN's Return On Invested Capital of 15.97% is amongst the best of the industry. QFIN outperforms 92.16% 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 7.49%.
• QFIN's Profit Margin of 28.08% is amongst the best of the industry. QFIN outperforms 92.16% of its industry peers.
• The Operating Margin of QFIN (35.21%) is better than 94.12% of its industry peers.
• QFIN's Gross Margin of 83.44% is amongst the best of the industry. QFIN outperforms 82.35% of its industry peers.

Health Examination for NASDAQ:QFIN

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:QFIN has received a 7 out of 10:

• 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.
• With an excellent Debt to FCF ratio value of 0.14, QFIN belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
• QFIN has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
• QFIN has a better Debt to Equity ratio (0.05) than 86.27% of its industry peers.
• A Current Ratio of 2.45 indicates that QFIN has no problem at all paying 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 Quick ratio of 2.45. This is in the better half of the industry: QFIN outperforms 78.43% of its industry peers.

Growth Assessment of NASDAQ:QFIN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:QFIN has achieved a 8 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.
• Based on estimates for the next years, QFIN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.77% on average per year.
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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.