FINVOLUTION GROUP-ADR (FINV) Stock Fundamental Analysis
NYSE:FINV - New York Stock Exchange, Inc. - US31810T1016 - ADR - Currency: USD
Overall FINV gets a fundamental rating of 8 out of 10. We evaluated FINV against 52 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. These ratings could make FINV a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year FINV was profitable.
FINV had a positive operating cash flow in the past year.
FINV had positive earnings in each of the past 5 years.
Each year in the past 5 years FINV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.10%, FINV belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
The Return On Equity of FINV (15.67%) is better than 63.46% of its industry peers.
FINV has a better Return On Invested Capital (28.32%) than 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FINV is significantly above the industry average of 10.31%.
The last Return On Invested Capital (28.32%) for FINV is above the 3 year average (27.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 15.67% | ||
| ROIC | 28.32% |
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
With an excellent Profit Margin value of 18.24%, FINV belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
In the last couple of years the Profit Margin of FINV has declined.
FINV has a Operating Margin of 54.51%. This is amongst the best in the industry. FINV outperforms 98.08% of its industry peers.
FINV's Operating Margin has improved in the last couple of years.
FINV's Gross Margin of 81.77% is fine compared to the rest of the industry. FINV outperforms 76.92% of its industry peers.
FINV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 54.51% | ||
| PM (TTM) | 18.24% | ||
| GM | 81.77% |
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
FINV has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, FINV has less shares outstanding
The number of shares outstanding for FINV has been reduced compared to 5 years ago.
FINV has a better debt/assets ratio than last year.
2.2 Solvency
FINV has an Altman-Z score of 3.94. This indicates that FINV is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.94, FINV belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
FINV has a debt to FCF ratio of 0.00. This is a very positive value and a sign of high solvency as it would only need 0.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.00, FINV belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that FINV is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, FINV belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.94 |
ROIC/WACC3.24
WACC8.73%
2.3 Liquidity
A Current Ratio of 4.40 indicates that FINV has no problem at all paying its short term obligations.
FINV has a Current ratio of 4.40. This is amongst the best in the industry. FINV outperforms 88.46% of its industry peers.
FINV has a Quick Ratio of 4.40. This indicates that FINV is financially healthy and has no problem in meeting its short term obligations.
FINV has a Quick ratio of 4.40. This is amongst the best in the industry. FINV outperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 4.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.94% over the past year.
FINV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.42% yearly.
The Revenue has been growing slightly by 5.69% in the past year.
FINV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.99% yearly.
EPS 1Y (TTM)25.94%
EPS 3Y2.31%
EPS 5Y3.42%
EPS Q2Q%45.44%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y11.33%
Revenue growth 5Y16.99%
Sales Q2Q%10%
3.2 Future
FINV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.70% yearly.
FINV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.95% yearly.
EPS Next Y24.65%
EPS Next 2Y18.2%
EPS Next 3Y15.7%
EPS Next 5YN/A
Revenue Next Year10.78%
Revenue Next 2Y11.01%
Revenue Next 3Y9.95%
Revenue Next 5YN/A
3.3 Evolution
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.41, the valuation of FINV can be described as very cheap.
Based on the Price/Earnings ratio, FINV is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FINV to the average of the S&P500 Index (27.30), we can say FINV is valued rather cheaply.
The Price/Forward Earnings ratio is 5.56, which indicates a rather cheap valuation of FINV.
Based on the Price/Forward Earnings ratio, FINV is valued cheaper than 82.69% of the companies in the same industry.
FINV is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 5.56 |
4.2 Price Multiples
90.38% of the companies in the same industry are more expensive than FINV, based on the Enterprise Value to EBITDA ratio.
FINV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.73 | ||
| EV/EBITDA | 1.96 |
4.3 Compensation for Growth
FINV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FINV has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FINV's earnings are expected to grow with 15.70% in the coming years.
PEG (NY)0.3
PEG (5Y)2.17
EPS Next 2Y18.2%
EPS Next 3Y15.7%
5. Dividend
5.1 Amount
FINV has a Yearly Dividend Yield of 2.49%.
Compared to an average industry Dividend Yield of 3.55, FINV pays a bit more dividend than its industry peers.
FINV's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
FINV pays out 18.52% of its income as dividend. This is a sustainable payout ratio.
The dividend of FINV is growing, but earnings are growing more, so the dividend growth is sustainable.
DP18.52%
EPS Next 2Y18.2%
EPS Next 3Y15.7%
10.6
+0.29 (+2.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners57.12%
Inst Owner Change0%
Ins Owners8.74%
Ins Owner ChangeN/A
Market Cap2.69B
Analysts87.69
Price Target12.33 (16.32%)
Short Float %10.23%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend0.25
Dividend Growth(5Y)5.61%
DP18.52%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.32%
PT rev (3m)1.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.31%
EPS NY rev (3m)9.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.41 | ||
| Fwd PE | 5.56 | ||
| P/S | 1.48 | ||
| P/FCF | 6.73 | ||
| P/OCF | 6.66 | ||
| P/B | 1.27 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 1.96 |
EPS(TTM)1.43
EY13.49%
EPS(NY)1.91
Fwd EY17.99%
FCF(TTM)1.58
FCFY14.87%
OCF(TTM)1.59
OCFY15.01%
SpS7.19
BVpS8.36
TBVpS8.26
PEG (NY)0.3
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.1% | ||
| ROE | 15.67% | ||
| ROCE | 33.39% | ||
| ROIC | 28.32% | ||
| ROICexc | 36.27% | ||
| ROICexgc | 36.68% | ||
| OM | 54.51% | ||
| PM (TTM) | 18.24% | ||
| GM | 81.77% | ||
| FCFM | 21.93% |
ROA(3y)10.56%
ROA(5y)11.75%
ROE(3y)17.01%
ROE(5y)19.63%
ROIC(3y)27.17%
ROIC(5y)26.14%
ROICexc(3y)34.82%
ROICexc(5y)33.56%
ROICexgc(3y)35.17%
ROICexgc(5y)33.94%
ROCE(3y)32.03%
ROCE(5y)30.81%
ROICexcg growth 3Y5.31%
ROICexcg growth 5Y9.71%
ROICexc growth 3Y5.34%
ROICexc growth 5Y9.72%
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%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.94% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 185.91 | ||
| Cash Conversion | 40.23% | ||
| Profit Quality | 120.24% | ||
| Current Ratio | 4.4 | ||
| Quick Ratio | 4.4 | ||
| Altman-Z | 3.94 |
F-Score5
WACC8.73%
ROIC/WACC3.24
Cap/Depr(3y)883.8%
Cap/Depr(5y)572.3%
Cap/Sales(3y)1.66%
Cap/Sales(5y)1.2%
Profit Quality(3y)55.72%
Profit Quality(5y)60.07%
High Growth Momentum
Growth
EPS 1Y (TTM)25.94%
EPS 3Y2.31%
EPS 5Y3.42%
EPS Q2Q%45.44%
EPS Next Y24.65%
EPS Next 2Y18.2%
EPS Next 3Y15.7%
EPS Next 5YN/A
Revenue 1Y (TTM)5.69%
Revenue growth 3Y11.33%
Revenue growth 5Y16.99%
Sales Q2Q%10%
Revenue Next Year10.78%
Revenue Next 2Y11.01%
Revenue Next 3Y9.95%
Revenue Next 5YN/A
EBIT growth 1Y4.64%
EBIT growth 3Y15.88%
EBIT growth 5Y21.9%
EBIT Next Year40.81%
EBIT Next 3Y20.08%
EBIT Next 5YN/A
FCF growth 1Y227.35%
FCF growth 3Y70.81%
FCF growth 5YN/A
OCF growth 1Y104.69%
OCF growth 3Y66.2%
OCF growth 5YN/A