164.3 USD
+1.3 (+0.8%)
We assign a fundamental rating of 6 out of 10 to FUTU. FUTU was compared to 237 industry peers in the Capital Markets industry. While FUTU has a great profitability rating, there are quite some concerns on its financial health. FUTU is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- FUTU had positive earnings in the past year.
- Each year in the past 5 years FUTU has been profitable.
- Of the past 5 years FUTU 4 years had a positive operating cash flow.
1.2 Ratios
- FUTU has a Return On Assets of 4.03%. This is in the better half of the industry: FUTU outperforms 60.76% of its industry peers.
- FUTU has a Return On Equity of 26.93%. This is amongst the best in the industry. FUTU outperforms 92.41% of its industry peers.
- The Return On Invested Capital of FUTU (20.53%) is better than 97.05% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FUTU is significantly above the industry average of 7.27%.
- The 3 year average ROIC (14.12%) for FUTU is below the current ROIC(20.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 26.93% | ||
| ROIC | 20.53% |
ROA(3y)3.64%
ROA(5y)3.11%
ROE(3y)16.96%
ROE(5y)16.05%
ROIC(3y)14.12%
ROIC(5y)11.45%
1.3 Margins
- Looking at the Profit Margin, with a value of 47.11%, FUTU belongs to the top of the industry, outperforming 89.03% 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 58.30%. This is amongst the best in the industry. FUTU outperforms 94.94% of its industry peers.
- FUTU's Operating Margin has improved in the last couple of years.
- FUTU has a Gross Margin of 85.66%. This is amongst the best in the industry. FUTU outperforms 90.30% of its industry peers.
- FUTU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.3% | ||
| PM (TTM) | 47.11% | ||
| GM | 85.66% |
OM growth 3Y2.89%
OM growth 5Y22.44%
PM growth 3Y0.47%
PM growth 5Y24.32%
GM growth 3Y-0.42%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
- Compared to 1 year ago, FUTU has less shares outstanding
- The number of shares outstanding for FUTU has been increased compared to 5 years ago.
- FUTU has a better debt/assets ratio than last year.
2.2 Solvency
- FUTU has an Altman-Z score of 1.05. This is a bad value and indicates that FUTU is not financially healthy and even has some risk of bankruptcy.
- FUTU has a Altman-Z score of 1.05. This is comparable to the rest of the industry: FUTU outperforms 58.23% of its industry peers.
- FUTU has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of FUTU (0.36) is better than 69.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- FUTU has a Current Ratio of 1.16. This is a normal value and indicates that FUTU is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of FUTU (1.16) is comparable to the rest of the industry.
- A Quick Ratio of 1.16 indicates that FUTU should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.16, FUTU is in line with its industry, outperforming 58.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- FUTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.96%, which is quite impressive.
- FUTU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 90.12% yearly.
- FUTU shows a strong growth in Revenue. In the last year, the Revenue has grown by 80.74%.
- Measured over the past years, FUTU shows a very strong growth in Revenue. The Revenue has been growing by 66.52% on average per year.
EPS 1Y (TTM)110.96%
EPS 3Y28.79%
EPS 5Y90.12%
EPS Q2Q%134.2%
Revenue 1Y (TTM)80.74%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%86.34%
3.2 Future
- Based on estimates for the next years, FUTU will show a very strong growth in Earnings Per Share. The EPS will grow by 27.39% on average per year.
- The Revenue is expected to grow by 31.93% on average over the next years. This is a very strong growth
EPS Next Y89.51%
EPS Next 2Y45.09%
EPS Next 3Y27.39%
EPS Next 5YN/A
Revenue Next Year74.94%
Revenue Next 2Y41.58%
Revenue Next 3Y31.93%
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.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- FUTU is valuated rather expensively with a Price/Earnings ratio of 17.80.
- The rest of the industry has a similar Price/Earnings ratio as FUTU.
- FUTU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- FUTU is valuated correctly with a Price/Forward Earnings ratio of 14.76.
- The rest of the industry has a similar Price/Forward Earnings ratio as FUTU.
- FUTU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FUTU is valued cheaply inside the industry as 85.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
- FUTU's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of FUTU may justify a higher PE ratio.
- A more expensive valuation may be justified as FUTU's earnings are expected to grow with 27.39% in the coming years.
PEG (NY)0.2
PEG (5Y)0.2
EPS Next 2Y45.09%
EPS Next 3Y27.39%
5. Dividend
5.1 Amount
- FUTU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FUTU HOLDINGS LTD-ADR / FUTU FAQ
Can you provide the ChartMill fundamental rating for FUTU HOLDINGS LTD-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to FUTU.
What is the valuation status of FUTU HOLDINGS LTD-ADR (FUTU) stock?
ChartMill assigns a valuation rating of 5 / 10 to FUTU HOLDINGS LTD-ADR (FUTU). This can be considered as Fairly Valued.
What is the profitability of FUTU stock?
FUTU HOLDINGS LTD-ADR (FUTU) has a profitability rating of 9 / 10.
What is the financial health of FUTU HOLDINGS LTD-ADR (FUTU) stock?
The financial health rating of FUTU HOLDINGS LTD-ADR (FUTU) is 3 / 10.
What is the earnings growth outlook for FUTU HOLDINGS LTD-ADR?
The Earnings per Share (EPS) of FUTU HOLDINGS LTD-ADR (FUTU) is expected to grow by 89.51% in the next year.