QIFU TECHNOLOGY INC (NASDAQ:QFIN) is showing good growth, while it is not too expensive.

Uncover the potential of QIFU TECHNOLOGY INC (NASDAQ:QFIN), a growth stock that our stock screener found to be reasonably priced. NASDAQ:QFIN is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Unpacking NASDAQ:QFIN's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:QFIN has earned a 7 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.
• QFIN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.41%.
• The Revenue has been growing by 29.65% on average over the past years. This is a very strong growth!
• 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 EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Assessment of NASDAQ:QFIN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:QFIN has achieved a 8 out of 10:

• Based on the Price/Earnings ratio of 8.05, the valuation of QFIN can be described as reasonable.
• Based on the Price/Earnings ratio, QFIN is valued a bit cheaper than 73.08% of the companies in the same industry.
• QFIN is valuated cheaply when we compare the Price/Earnings ratio to 29.98, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 6.08, 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 86.54% of the companies in the same industry.
• QFIN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.66, which is the current average of the S&P500 Index.
• 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.

Understanding NASDAQ:QFIN's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:QFIN has received 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 has a Debt to FCF ratio of 0.12. This is amongst the best in the industry. QFIN outperforms 92.31% of its industry peers.
• A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
• Looking at the Debt to Equity ratio, with a value of 0.05, QFIN belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
• A Current Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
• QFIN has a better Current ratio (2.56) than 71.15% 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.
• QFIN has a better Quick ratio (2.56) than 73.08% of its industry peers.

Profitability Insights: 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 90.38% of its industry peers.
• With an excellent Return On Equity value of 23.90%, QFIN belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
• QFIN has a Return On Invested Capital of 18.00%. This is amongst the best in the industry. QFIN outperforms 96.15% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for QFIN is significantly above the industry average of 7.41%.
• QFIN's Profit Margin of 31.78% is amongst the best of the industry. QFIN outperforms 92.31% of its industry peers.
• 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.
• QFIN's Gross Margin of 83.13% is amongst the best of the industry. QFIN outperforms 80.77% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.