FINVOLUTION GROUP-ADR (FINV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FINV - US31810T1016 - ADR
5.2 USD
+0.01 (+0.19%)
FINV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 53 industry peers in the Consumer Finance industry. FINV gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on FINV. With these ratings, FINV could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year FINV was profitable.
- FINV had positive earnings in each of the past 5 years.
- In the past 5 years FINV always reported a positive cash flow from operatings.
1.2 Ratios
- FINV has a better Return On Assets (10.64%) than 86.79% of its industry peers.
- With a decent Return On Equity value of 17.07%, FINV is doing good in the industry, outperforming 67.92% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 19.01%, FINV belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
- FINV had an Average Return On Invested Capital over the past 3 years of 27.17%. This is significantly above the industry average of 12.42%.
- The last Return On Invested Capital (19.01%) for FINV is well below the 3 year average (27.17%), which needs to be investigated, but indicates that FINV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 17.07% | ||
| ROIC | 19.01% |
ROA(3y)10.56%
ROA(5y)11.75%
ROE(3y)17.01%
ROE(5y)19.63%
ROIC(3y)27.17%
ROIC(5y)26.14%
1.3 Margins
- FINV has a better Profit Margin (19.99%) than 75.47% of its industry peers.
- FINV's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 38.25%, FINV belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
- In the last couple of years the Operating Margin of FINV has grown nicely.
- The Gross Margin of FINV (80.60%) is better than 77.36% of its industry peers.
- FINV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.25% | ||
| PM (TTM) | 19.99% | ||
| GM | 80.6% |
OM growth 3Y4.09%
OM growth 5Y4.2%
PM growth 3Y-11.7%
PM growth 5Y-14.45%
GM growth 3Y0.5%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FINV is creating value.
- The number of shares outstanding for FINV has been reduced compared to 1 year ago.
- Compared to 5 years ago, FINV has less shares outstanding
- The debt/assets ratio for FINV has been reduced compared to a year ago.
2.2 Solvency
- FINV has an Altman-Z score of 2.73. This is not the best score and indicates that FINV is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of FINV (2.73) is better than 86.79% of its industry peers.
- FINV has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
- FINV's Debt to Equity ratio of 0.07 is amongst the best of the industry. FINV outperforms 88.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.73 |
ROIC/WACC1.91
WACC9.97%
2.3 Liquidity
- A Current Ratio of 3.64 indicates that FINV has no problem at all paying its short term obligations.
- FINV has a Current ratio of 3.64. This is amongst the best in the industry. FINV outperforms 84.91% of its industry peers.
- FINV has a Quick Ratio of 3.64. This indicates that FINV is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of FINV (3.64) is better than 84.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.64 |
3. Growth
3.1 Past
- FINV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.38%, which is quite impressive.
- The Earnings Per Share has been growing slightly by 3.42% on average over the past years.
- FINV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.11%.
- Measured over the past years, FINV shows a quite strong growth in Revenue. The Revenue has been growing by 16.99% on average per year.
EPS 1Y (TTM)27.38%
EPS 3Y2.31%
EPS 5Y3.42%
EPS Q2Q%-7.13%
Revenue 1Y (TTM)9.11%
Revenue growth 3Y11.33%
Revenue growth 5Y16.99%
Sales Q2Q%3.17%
3.2 Future
- Based on estimates for the next years, FINV will show a small growth in Earnings Per Share. The EPS will grow by 2.09% on average per year.
- Based on estimates for the next years, FINV will show a small growth in Revenue. The Revenue will grow by 2.78% on average per year.
EPS Next Y8.78%
EPS Next 2Y-6.2%
EPS Next 3Y2.09%
EPS Next 5YN/A
Revenue Next Year3.28%
Revenue Next 2Y-2.42%
Revenue Next 3Y2.78%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- FINV is valuated cheaply with a Price/Earnings ratio of 3.21.
- Compared to the rest of the industry, the Price/Earnings ratio of FINV indicates a rather cheap valuation: FINV is cheaper than 88.68% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of FINV to the average of the S&P500 Index (27.25), we can say FINV is valued rather cheaply.
- With a Price/Forward Earnings ratio of 4.20, the valuation of FINV can be described as very cheap.
- Based on the Price/Forward Earnings ratio, FINV is valued cheaper than 88.68% of the companies in the same industry.
- FINV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.21 | ||
| Fwd PE | 4.2 |
4.2 Price Multiples
- FINV's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FINV is cheaper than 88.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.09 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of FINV may justify a higher PE ratio.
PEG (NY)0.37
PEG (5Y)0.94
EPS Next 2Y-6.2%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
- FINV has a Yearly Dividend Yield of 4.96%, which is a nice return.
- FINV's Dividend Yield is a higher than the industry average which is at 2.63.
- FINV's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
5.2 History
- The dividend of FINV has a limited annual growth rate of 5.61%.
- FINV has been paying a dividend for over 5 years, so it has already some track record.
- FINV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.61%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- The dividend of FINV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DPN/A
EPS Next 2Y-6.2%
EPS Next 3Y2.09%
FINVOLUTION GROUP-ADR / FINV FAQ
What is the ChartMill fundamental rating of FINVOLUTION GROUP-ADR (FINV) stock?
ChartMill assigns a fundamental rating of 7 / 10 to FINV.
What is the valuation status for FINV stock?
ChartMill assigns a valuation rating of 8 / 10 to FINVOLUTION GROUP-ADR (FINV). This can be considered as Undervalued.
What is the profitability of FINV stock?
FINVOLUTION GROUP-ADR (FINV) has a profitability rating of 8 / 10.
Can you provide the financial health for FINV stock?
The financial health rating of FINVOLUTION GROUP-ADR (FINV) is 7 / 10.
What is the earnings growth outlook for FINVOLUTION GROUP-ADR?
The Earnings per Share (EPS) of FINVOLUTION GROUP-ADR (FINV) is expected to grow by 8.78% in the next year.