Investors should take notice of NASDAQ:QFIN—it offers a great deal for the fundamentals it presents.

Our stock screening tool has pinpointed QIFU TECHNOLOGY INC (NASDAQ:QFIN) as an undervalued stock. NASDAQ:QFIN maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Assessing Valuation Metrics for NASDAQ:QFIN

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 9 for valuation:

• Based on the Price/Earnings ratio of 7.61, the valuation of QFIN can be described as very cheap.
• Based on the Price/Earnings ratio, QFIN is valued cheaper than 80.77% of the companies in the same industry.
• QFIN is valuated cheaply when we compare the Price/Earnings ratio to 29.16, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 5.76, which 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 84.62% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 23.72. QFIN is valued rather cheaply when compared to this.
• Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaper than 84.62% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
• QFIN's 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 27.08% in the coming years. This may justify a more expensive valuation.

Understanding NASDAQ:QFIN's Profitability

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:

• 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's Return On Equity of 23.90% is amongst the best of the industry. QFIN outperforms 86.54% of its industry peers.
• QFIN has a better Return On Invested Capital (18.00%) than 96.15% 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 7.32%.
• Looking at the Profit Margin, with a value of 31.78%, QFIN belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
• QFIN's Operating Margin of 40.27% is amongst the best of the industry. QFIN outperforms 98.08% of its industry peers.
• QFIN has a better Gross Margin (83.13%) than 80.77% of its industry peers.

Understanding NASDAQ:QFIN's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:QFIN has achieved a 7 out of 10:

• QFIN has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.12, QFIN belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
• A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
• QFIN has a Debt to Equity ratio of 0.05. This is amongst the best in the industry. QFIN outperforms 88.46% of its industry peers.
• 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.
• With a decent Current ratio value of 2.56, QFIN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
• A Quick Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
• With a decent Quick ratio value of 2.56, QFIN is doing good in the industry, outperforming 76.92% of the companies in the same industry.

How We Gauge 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:

• The Earnings Per Share has grown by an impressive 40.63% over the past year.
• The Revenue has grown by 9.41% in the past year. This is quite good.
• 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 27.08% 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.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.