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FUTU HOLDINGS LTD-ADR (FUTU) Stock Fundamental Analysis

NASDAQ:FUTU - Nasdaq - US36118L1061 - ADR - Currency: USD

99.69  +5.82 (+6.2%)

After market: 98.98 -0.71 (-0.71%)

Fundamental Rating

6

Overall FUTU gets a fundamental rating of 6 out of 10. We evaluated FUTU against 222 industry peers in the Capital Markets industry. FUTU has an excellent profitability rating, but there are concerns on its financial health. FUTU is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

FUTU had positive earnings in the past year.
In the past year FUTU has reported a negative cash flow from operations.
Each year in the past 5 years FUTU has been profitable.
FUTU had a positive operating cash flow in 4 of the past 5 years.
FUTU Yearly Net Income VS EBIT VS OCF VS FCFFUTU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B 10B 15B 20B

1.2 Ratios

Looking at the Return On Assets, with a value of 4.41%, FUTU is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.43%, FUTU belongs to the top of the industry, outperforming 82.49% of the companies in the same industry.
FUTU has a Return On Invested Capital of 14.25%. This is amongst the best in the industry. FUTU outperforms 91.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FUTU is significantly above the industry average of 6.67%.
The last Return On Invested Capital (14.25%) for FUTU is above the 3 year average (12.00%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 4.41%
ROE 17.43%
ROIC 14.25%
ROA(3y)3.42%
ROA(5y)2.56%
ROE(3y)14.95%
ROE(5y)13.28%
ROIC(3y)12%
ROIC(5y)9.28%
FUTU Yearly ROA, ROE, ROICFUTU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80

1.3 Margins

Looking at the Profit Margin, with a value of 42.78%, FUTU belongs to the top of the industry, outperforming 86.18% of the companies in the same industry.
In the last couple of years the Profit Margin of FUTU has grown nicely.
FUTU has a Operating Margin of 50.03%. This is amongst the best in the industry. FUTU outperforms 86.64% of its industry peers.
In the last couple of years the Operating Margin of FUTU has grown nicely.
The Gross Margin of FUTU (84.65%) is better than 87.56% of its industry peers.
FUTU's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 50.03%
PM (TTM) 42.78%
GM 84.65%
OM growth 3Y4.11%
OM growth 5Y14.23%
PM growth 3Y2.23%
PM growth 5Y56.53%
GM growth 3Y2.34%
GM growth 5Y4.1%
FUTU Yearly Profit, Operating, Gross MarginsFUTU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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3

2. Health

2.1 Basic Checks

Compared to 1 year ago, FUTU has less shares outstanding
Compared to 5 years ago, FUTU has more shares outstanding
Compared to 1 year ago, FUTU has a worse debt to assets ratio.
FUTU Yearly Shares OutstandingFUTU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
FUTU Yearly Total Debt VS Total AssetsFUTU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B 100B

2.2 Solvency

FUTU has an Altman-Z score of 1.55. This is a bad value and indicates that FUTU is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FUTU (1.55) is better than 63.13% of its industry peers.
FUTU has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
FUTU's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. FUTU outperforms 77.88% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 1.55
ROIC/WACCN/A
WACCN/A
FUTU Yearly LT Debt VS Equity VS FCFFUTU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B

2.3 Liquidity

FUTU has a Current Ratio of 1.32. This is a normal value and indicates that FUTU is financially healthy and should not expect problems in meeting its short term obligations.
FUTU has a Current ratio (1.32) which is in line with its industry peers.
FUTU has a Quick Ratio of 1.32. This is a normal value and indicates that FUTU is financially healthy and should not expect problems in meeting its short term obligations.
FUTU has a Quick ratio (1.32) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 1.32
FUTU Yearly Current Assets VS Current LiabilitesFUTU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B 100B

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8

3. Growth

3.1 Past

FUTU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.77%.
FUTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 148.89% yearly.
The Revenue has grown by 31.45% in the past year. This is a very strong growth!
FUTU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 65.28% yearly.
EPS 1Y (TTM)2.77%
EPS 3Y69.04%
EPS 5Y148.89%
EPS Q2Q%20.05%
Revenue 1Y (TTM)31.45%
Revenue growth 3Y44.59%
Revenue growth 5Y65.28%
Sales Q2Q%29.65%

3.2 Future

FUTU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.31% yearly.
Based on estimates for the next years, FUTU will show a quite strong growth in Revenue. The Revenue will grow by 17.66% on average per year.
EPS Next Y19.06%
EPS Next 2Y23.29%
EPS Next 3Y20.31%
EPS Next 5YN/A
Revenue Next Year24.84%
Revenue Next 2Y20.88%
Revenue Next 3Y17.66%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
FUTU Yearly Revenue VS EstimatesFUTU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B
FUTU Yearly EPS VS EstimatesFUTU Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40 50

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4

4. Valuation

4.1 Price/Earnings Ratio

FUTU is valuated rather expensively with a Price/Earnings ratio of 22.76.
FUTU's Price/Earnings ratio is in line with the industry average.
FUTU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
FUTU is valuated correctly with a Price/Forward Earnings ratio of 15.64.
FUTU's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, FUTU is valued a bit cheaper.
Industry RankSector Rank
PE 22.76
Fwd PE 15.64
FUTU Price Earnings VS Forward Price EarningsFUTU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FUTU is valued cheaper than 89.86% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.88
FUTU Per share dataFUTU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15 20

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FUTU may justify a higher PE ratio.
FUTU's earnings are expected to grow with 20.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)0.15
EPS Next 2Y23.29%
EPS Next 3Y20.31%

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1

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.14%, FUTU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 9.43, FUTU is paying slightly less dividend.
FUTU's Dividend Yield is comparable with the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 2.14%

5.2 History

FUTU does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
FUTU Yearly Dividends per shareFUTU Yearly Dividends per shareYearly Dividends per share 2024 0.5 1 1.5

5.3 Sustainability

DPN/A
EPS Next 2Y23.29%
EPS Next 3Y20.31%
FUTU Yearly Income VS Free CF VS DividendFUTU Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B 10B 15B 20B

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FUTU HOLDINGS LTD-ADR

NASDAQ:FUTU (1/28/2025, 8:00:01 PM)

After market: 98.98 -0.71 (-0.71%)

99.69

+5.82 (+6.2%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)11-19 2024-11-19/bmo
Earnings (Next)N/A N/A
Inst Owners36.4%
Inst Owner Change0.99%
Ins Owners15.26%
Ins Owner Change0%
Market Cap13.75B
Analysts84.17
Price Target115.91 (16.27%)
Short Float %42.44%
Short Ratio1.71
Dividend
Industry RankSector Rank
Dividend Yield 2.14%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.09%
Min EPS beat(2)-10.48%
Max EPS beat(2)4.3%
EPS beat(4)3
Avg EPS beat(4)13.14%
Min EPS beat(4)-10.48%
Max EPS beat(4)37.56%
EPS beat(8)6
Avg EPS beat(8)12.52%
EPS beat(12)7
Avg EPS beat(12)5.39%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-10.34%
Max Revenue beat(2)8.58%
Revenue beat(4)3
Avg Revenue beat(4)7.8%
Min Revenue beat(4)-10.34%
Max Revenue beat(4)21.83%
Revenue beat(8)6
Avg Revenue beat(8)5.64%
Revenue beat(12)9
Avg Revenue beat(12)8.08%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)40.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)6.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)8.94%
Valuation
Industry RankSector Rank
PE 22.76
Fwd PE 15.64
P/S 10.7
P/FCF N/A
P/OCF N/A
P/B 4.36
P/tB 4.36
EV/EBITDA 8.88
EPS(TTM)4.38
EY4.39%
EPS(NY)6.37
Fwd EY6.39%
FCF(TTM)-5.97
FCFYN/A
OCF(TTM)-5.9
OCFYN/A
SpS9.32
BVpS22.88
TBVpS22.88
PEG (NY)1.19
PEG (5Y)0.15
Profitability
Industry RankSector Rank
ROA 4.41%
ROE 17.43%
ROCE 20.27%
ROIC 14.25%
ROICexc N/A
ROICexgc N/A
OM 50.03%
PM (TTM) 42.78%
GM 84.65%
FCFM N/A
ROA(3y)3.42%
ROA(5y)2.56%
ROE(3y)14.95%
ROE(5y)13.28%
ROIC(3y)12%
ROIC(5y)9.28%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.44%
ROCE(5y)15.29%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y4.11%
OM growth 5Y14.23%
PM growth 3Y2.23%
PM growth 5Y56.53%
GM growth 3Y2.34%
GM growth 5Y4.1%
F-Score6
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Debt/EBITDA 1.12
Cap/Depr 127.8%
Cap/Sales 0.78%
Interest Coverage 5.71
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.32
Quick Ratio 1.32
Altman-Z 1.55
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)162.2%
Cap/Depr(5y)273.15%
Cap/Sales(3y)0.99%
Cap/Sales(5y)3.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.77%
EPS 3Y69.04%
EPS 5Y148.89%
EPS Q2Q%20.05%
EPS Next Y19.06%
EPS Next 2Y23.29%
EPS Next 3Y20.31%
EPS Next 5YN/A
Revenue 1Y (TTM)31.45%
Revenue growth 3Y44.59%
Revenue growth 5Y65.28%
Sales Q2Q%29.65%
Revenue Next Year24.84%
Revenue Next 2Y20.88%
Revenue Next 3Y17.66%
Revenue Next 5YN/A
EBIT growth 1Y40.31%
EBIT growth 3Y50.54%
EBIT growth 5Y88.8%
EBIT Next Year21.04%
EBIT Next 3Y20.82%
EBIT Next 5YN/A
FCF growth 1Y-289.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-282.37%
OCF growth 3YN/A
OCF growth 5YN/A