In the world of growth stocks, NASDAQ:QFIN shines as a value proposition.

Last update: Dec 27, 2024

QIFU TECHNOLOGY INC (NASDAQ:QFIN) was identified as an affordable growth stock by our stock screener. NASDAQ:QFIN is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Looking at the Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:QFIN has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 40.63% over the past year.
QFIN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.41%.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.08% 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.

A Closer Look at Valuation for NASDAQ:QFIN

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:QFIN has received a 9 out of 10:

The Price/Earnings ratio is 7.69, which indicates a rather cheap valuation of QFIN.
Based on the Price/Earnings ratio, QFIN is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
QFIN is valuated cheaply when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
QFIN is valuated cheaply with a Price/Forward Earnings ratio of 5.82.
Based on the Price/Forward Earnings ratio, QFIN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, QFIN is valued rather cheaply.
84.62% of the companies in the same industry are more expensive than QFIN, based on the Enterprise Value to EBITDA ratio.
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.
A more expensive valuation may be justified as QFIN's earnings are expected to grow with 27.08% in the coming years.

Unpacking NASDAQ:QFIN's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:QFIN has earned 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.
A Current Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.56, QFIN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
QFIN has a Quick Ratio of 2.56. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN has a Quick ratio of 2.56. This is in the better half of the industry: QFIN outperforms 76.92% of its industry peers.

Profitability Examination for 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:

QFIN has a Return On Assets of 11.62%. This is amongst the best in the industry. QFIN outperforms 92.31% of its industry peers.
The Return On Equity of QFIN (23.90%) is better than 86.54% of its industry peers.
With an excellent Return On Invested Capital value of 18.00%, QFIN belongs to the best of the industry, outperforming 96.15% 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 7.32%.
With an excellent Profit Margin value of 31.78%, QFIN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
With an excellent Operating Margin value of 40.27%, QFIN belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
Looking at the Gross Margin, with a value of 83.13%, QFIN belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.