FINVOLUTION GROUP-ADR (FINV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FINV - US31810T1016 - ADR
5.14 USD
+0.13 (+2.59%)
5.23 USD
+0.09 (+1.75%)
We assign a fundamental rating of 7 out of 10 to FINV. FINV was compared to 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. These ratings could make FINV a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
FINV had positive earnings in the past year.
In the past 5 years FINV has always been profitable.
FINV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FINV's Return On Assets of 10.64% is amongst the best of the industry. FINV outperforms 86.79% of its industry peers.
The Return On Equity of FINV (17.07%) is better than 67.92% of its industry peers.
FINV has a Return On Invested Capital of 19.01%. This is amongst the best in the industry. FINV outperforms 88.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FINV is significantly above the industry average of 12.42%.
The 3 year average ROIC (27.17%) for FINV is well above the current ROIC(19.01%). The reason for the recent decline needs to be investigated.
| 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.
FINV has a better Gross Margin (80.60%) than 79.25% 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.
Compared to 1 year ago, FINV has less shares outstanding
FINV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FINV has been reduced compared to a year ago.
2.2 Solvency
FINV has an Altman-Z score of 2.72. 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.
With an excellent Altman-Z score value of 2.72, FINV belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that FINV is not too dependend on debt financing.
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 | 2.72 |
ROIC/WACC1.9
WACC9.99%
2.3 Liquidity
FINV has a Current Ratio of 3.64. This indicates that FINV is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.64, FINV belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
A Quick Ratio of 3.64 indicates that FINV has no problem at all paying its short term obligations.
FINV has a Quick ratio of 3.64. This is amongst the best in the industry. FINV outperforms 84.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.38% over the past year.
The Earnings Per Share has been growing slightly by 3.42% on average over the past years.
Looking at the last year, FINV shows a quite strong growth in Revenue. The Revenue has grown by 9.11% in the last 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)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
The Earnings Per Share is expected to grow by 2.09% on average over the next years.
FINV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.78% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 3.19, the valuation of FINV can be described as very cheap.
88.68% of the companies in the same industry are more expensive than FINV, based on the Price/Earnings ratio.
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.
Based on the Price/Forward Earnings ratio of 4.17, the valuation of FINV can be described as very cheap.
Based on the Price/Forward Earnings ratio, FINV is valued cheaply inside the industry as 88.68% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.98. FINV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.19 | ||
| Fwd PE | 4.17 |
4.2 Price Multiples
90.57% of the companies in the same industry are more expensive than FINV, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.04 |
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)0.36
PEG (5Y)0.93
EPS Next 2Y-6.2%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
FINV has a Yearly Dividend Yield of 4.97%, which is a nice return.
The stock price of FINV dropped by -20.56% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
FINV's Dividend Yield is rather good when compared to the industry average which is at 2.60. FINV pays more dividend than 81.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, FINV pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
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.
As FINV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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%
5.14
+0.13 (+2.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners55.97%
Inst Owner Change-0.1%
Ins Owners8.74%
Ins Owner ChangeN/A
Market Cap1.30B
Revenue(TTM)14.00B
Net Income(TTM)2.80B
Analysts87.69
Price Target8.54 (66.15%)
Short Float %25.22%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.97% |
Yearly Dividend0.26
Dividend Growth(5Y)5.61%
DPN/A
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)0%
PT rev (3m)-27.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.14%
EPS NY rev (3m)-8.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)-4.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.19 | ||
| Fwd PE | 4.17 | ||
| P/S | 0.65 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.55 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 1.04 |
EPS(TTM)1.61
EY31.32%
EPS(NY)1.23
Fwd EY24%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.91
BVpS9.27
TBVpS9.18
PEG (NY)0.36
PEG (5Y)0.93
Graham Number18.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.64% | ||
| ROE | 17.07% | ||
| ROCE | 22.5% | ||
| ROIC | 19.01% | ||
| ROICexc | 23.11% | ||
| ROICexgc | 23.29% | ||
| OM | 38.25% | ||
| PM (TTM) | 19.99% | ||
| GM | 80.6% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y5.31%
ROICexgc 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-ScoreN/A
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 3.64 | ||
| Altman-Z | 2.72 |
F-ScoreN/A
WACC9.99%
ROIC/WACC1.9
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)27.38%
EPS 3Y2.31%
EPS 5Y3.42%
EPS Q2Q%-7.13%
EPS Next Y8.78%
EPS Next 2Y-6.2%
EPS Next 3Y2.09%
EPS Next 5YN/A
Revenue 1Y (TTM)9.11%
Revenue growth 3Y11.33%
Revenue growth 5Y16.99%
Sales Q2Q%3.17%
Revenue Next Year3.28%
Revenue Next 2Y-2.42%
Revenue Next 3Y2.78%
Revenue Next 5YN/A
EBIT growth 1Y-23.94%
EBIT growth 3Y15.88%
EBIT growth 5Y21.9%
EBIT Next Year19.81%
EBIT Next 3Y4.61%
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
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.