QIFU TECHNOLOGY INC (NASDAQ:QFIN) can be considered a quality stock. Here's why.

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

A Deep Dive into QIFU TECHNOLOGY INC's Quality Metrics.

• Over the past 5 years, QFIN has experienced impressive revenue growth, with 13.24% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 26.0%, QFIN showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• QFIN demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.15, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of QFIN stands at 142.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• QFIN has demonstrated consistent growth in EBIT over the past 5 years, with a strong 21.07%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of QFIN has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of QFIN?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

QFIN gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 53 industry peers in the Consumer Finance industry. Both the health and profitability get an excellent rating, making QFIN a very profitable company, without any liquidiy or solvency issues. QFIN may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, QFIN could be worth investigating further for value and quality investing!.

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

More quality stocks can be found in our Caviar Cruise screen.

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.