NASDAQ:QFIN: a strong growth stock preparing for the next leg up?.

Exploring Growth Potential: QIFU TECHNOLOGY INC (NASDAQ:QFIN) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and QIFU TECHNOLOGY INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected QIFU TECHNOLOGY INC on our screen for growth with base formation, suggesting it merits a closer look.

Understanding NASDAQ:QFIN's Growth

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 8 reflects its growth potential:

• QFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.63%, which is quite impressive.
• Looking at the last year, QFIN shows a quite strong growth in Revenue. The Revenue has grown by 9.41% 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.
• The Earnings Per Share is expected to grow by 27.08% on average over the next years. This is a very strong growth
• Based on estimates for the next years, QFIN will show a quite strong growth in Revenue. The Revenue will grow by 8.18% on average per year.
• 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.

A Closer Look at 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 0.12, which is an excellent value as it means it would take QFIN, only 0.12 years of fcf income to pay off all of its debts.
• QFIN has a better Debt to FCF ratio (0.12) than 94.23% of its industry peers.
• QFIN has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
• With an excellent Debt to Equity ratio value of 0.05, QFIN belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
• QFIN has a Current Ratio of 2.56. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
• QFIN has a Current ratio of 2.56. This is in the better half of the industry: QFIN outperforms 75.00% of its industry peers.
• A Quick Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.56, QFIN is in the better half of the industry, outperforming 76.92% of the companies in the same industry.

How do we evaluate the Profitability for NASDAQ:QFIN?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:QFIN, the assigned 8 is a significant indicator of profitability:

• With an excellent Return On Assets value of 11.62%, QFIN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
• QFIN has a Return On Equity of 23.90%. This is amongst the best in the industry. QFIN outperforms 86.54% of its industry peers.
• QFIN's Return On Invested Capital of 18.00% is amongst the best of the industry. QFIN outperforms 94.23% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for QFIN is significantly above the industry average of 7.43%.
• QFIN's Profit Margin of 31.78% is amongst the best of the industry. QFIN outperforms 92.31% of its industry peers.
• QFIN has a Operating Margin of 40.27%. This is amongst the best in the industry. QFIN outperforms 96.15% of its industry peers.
• QFIN has a Gross Margin of 83.13%. This is amongst the best in the industry. QFIN outperforms 80.77% of its industry peers.

How does the Setup look for NASDAQ:QFIN

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:QFIN scores a 7 out of 10:

QFIN has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

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

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

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.