NASDAQ:QFIN stands out as a growth opportunity that won't break the bank.

Our stock screener has spotted QIFU TECHNOLOGY INC (NASDAQ:QFIN) as a growth stock which is not overvalued. NASDAQ:QFIN is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Growth Metrics 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 7 out of 10:

• 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.
• 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.
• The Earnings Per Share is expected to grow by 27.08% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:QFIN scores a 8 out of 10:

• QFIN is valuated reasonably with a Price/Earnings ratio of 8.65.
• Based on the Price/Earnings ratio, QFIN is valued a bit cheaper than 73.08% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.09, QFIN is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 6.53, the valuation of QFIN can be described as very cheap.
• 84.62% of the companies in the same industry are more expensive than QFIN, based on the Price/Forward Earnings ratio.
• QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.77, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 82.69% of the companies listed 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 27.08% in the coming years.

Exploring NASDAQ:QFIN's Health

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:

• 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.
• QFIN has a better Debt to FCF ratio (0.12) than 92.31% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
• QFIN's Debt to Equity ratio of 0.05 is amongst the best of the industry. QFIN outperforms 86.54% of its industry peers.
• A Current Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
• QFIN's Current ratio of 2.56 is fine compared to the rest 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.
• 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.

Evaluating Profitability: 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:

• 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.
• QFIN has a Return On Equity of 23.90%. This is amongst the best in the industry. QFIN outperforms 84.62% of its industry peers.
• The Return On Invested Capital of QFIN (18.00%) is better 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%.
• QFIN has a better Profit Margin (31.78%) than 92.31% of its industry peers.
• The Operating Margin of QFIN (40.27%) is better than 98.08% of its industry peers.
• The Gross Margin of QFIN (83.13%) is better than 80.77% of its industry peers.

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

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

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.