NASDAQ:QFIN is probably undervalued for the fundamentals it is displaying.

Uncover the potential of QIFU TECHNOLOGY INC (NASDAQ:QFIN) as our stock screener's choice for an undervalued stock. NASDAQ:QFIN maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Deciphering NASDAQ:QFIN's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:QFIN boasts a 8 out of 10:

• A Price/Earnings ratio of 8.67 indicates a reasonable valuation of QFIN.
• Compared to the rest of the industry, the Price/Earnings ratio of QFIN indicates a somewhat cheap valuation: QFIN is cheaper than 73.08% of the companies listed in the same industry.
• QFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.99.
• The Price/Forward Earnings ratio is 6.56, which indicates a rather cheap valuation of QFIN.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 84.62% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 96.58, QFIN is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
• 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.

A Closer Look at 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:

• QFIN has a better Return On Assets (11.62%) than 92.31% of its industry peers.
• The Return On Equity of QFIN (23.90%) is better than 84.62% 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.
• QFIN had an Average Return On Invested Capital over the past 3 years of 19.66%. This is significantly above the industry average of 7.32%.
• The Profit Margin of QFIN (31.78%) is better than 92.31% of its industry peers.
• The Operating Margin of QFIN (40.27%) is better than 98.08% of its industry peers.
• 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.

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.
• QFIN has a better Debt to FCF ratio (0.12) than 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.
• QFIN has a better Debt to Equity ratio (0.05) than 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.
• The Current ratio of QFIN (2.56) is better than 75.00% of its industry peers.
• 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.
• The Quick ratio of QFIN (2.56) is better than 76.92% of its industry peers.

Evaluating Growth: NASDAQ:QFIN

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 7 out of 10:

• The Earnings Per Share has grown by an impressive 40.63% over the past year.
• 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.
• 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.