Exploring the Growth Potential of NASDAQ:QFIN as It Nears a Breakout.

In this article we will dive into QIFU TECHNOLOGY INC (NASDAQ:QFIN) as a possible candidate for growth investing. Investors should always do their own research, but we noticed QIFU TECHNOLOGY INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Looking at the Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:QFIN was assigned a score of 8 for growth:

• 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.
• QFIN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.08% yearly.
• 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.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Assessment of NASDAQ:QFIN

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:QFIN scores 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's Debt to FCF ratio of 0.12 is amongst the best of the industry. QFIN outperforms 92.31% 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.
• The Debt to Equity ratio of QFIN (0.05) is better than 86.54% 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 73.08% 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 75.00% of its industry peers.

Evaluating Profitability: 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:

• The Return On Assets of QFIN (11.62%) is better than 92.31% of its industry peers.
• With an excellent Return On Equity value of 23.90%, QFIN belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
• 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.
• QFIN had an Average Return On Invested Capital over the past 3 years of 19.66%. This is significantly above the industry average of 7.34%.
• 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 has a Operating Margin of 40.27%. This is amongst the best in the industry. QFIN outperforms 98.08% of its industry peers.
• With an excellent Gross Margin value of 83.13%, QFIN belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.

Looking at the Setup

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:QFIN exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Although QFIN has an excellent technical rating, the quality of the presented setup is not ideal 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.

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

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

Disclaimer

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.