FUTU HOLDINGS LTD-ADR (FUTU)
US36118L1061 - ADR
We assign a fundamental rating of 6 out of 10 to FUTU. FUTU was compared to 220 industry peers in the Capital Markets industry. FUTU has an excellent profitability rating, but there are concerns on its financial health. FUTU is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year FUTU was profitable.
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.
1.2 Ratios
FUTU has a Return On Assets of 4.41%. This is in the better half of the industry: FUTU outperforms 62.67% of its industry peers.
With an excellent Return On Equity value of 17.43%, FUTU belongs to the best of the industry, outperforming 81.57% of the companies in the same industry.
FUTU's Return On Invested Capital of 14.25% is amongst the best of the industry. FUTU outperforms 90.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FUTU is significantly above the industry average of 6.99%.
The 3 year average ROIC (12.00%) for FUTU is below the current ROIC(14.25%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
FUTU's Profit Margin of 42.78% is amongst the best of the industry. FUTU outperforms 85.25% of its industry peers.
In the last couple of years the Profit Margin of FUTU has grown nicely.
FUTU's Operating Margin of 50.03% is amongst the best of the industry. FUTU outperforms 87.10% of its industry peers.
In the last couple of years the Operating Margin of FUTU has grown nicely.
With an excellent Gross Margin value of 84.65%, FUTU belongs to the best of the industry, outperforming 86.64% of the companies in the same industry.
FUTU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The number of shares outstanding for FUTU has been reduced compared to 1 year ago.
FUTU has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FUTU has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that FUTU is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.49, FUTU is doing good in the industry, outperforming 63.59% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that FUTU is not too dependend on debt financing.
FUTU has a Debt to Equity ratio of 0.23. This is in the better half of the industry: FUTU outperforms 78.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.32 indicates that FUTU should not have too much problems paying its short term obligations.
FUTU's Current ratio of 1.32 is in line compared to the rest of the industry. FUTU outperforms 58.53% of its industry peers.
A Quick Ratio of 1.32 indicates that FUTU should not have too much problems paying its short term obligations.
FUTU has a Quick ratio (1.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.77% over the past year.
Measured over the past years, FUTU shows a very strong growth in Earnings Per Share. The EPS has been growing by 148.89% on average per year.
The Revenue has grown by 31.45% in the past year. This is a very strong growth!
Measured over the past years, FUTU shows a very strong growth in Revenue. The Revenue has been growing by 65.28% on average per year.
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 Year24.46%
Revenue Next 2Y20.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.82, FUTU is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of FUTU indicates a slightly more expensive valuation: FUTU is more expensive than 60.83% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. FUTU is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.62 indicates a correct valuation of FUTU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FUTU is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, FUTU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 13.62 |
4.2 Price Multiples
FUTU's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FUTU is cheaper than 90.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
FUTU's 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.
A more expensive valuation may be justified as FUTU's earnings are expected to grow with 20.31% in the coming years.
PEG (NY)1.04
PEG (5Y)0.13
EPS Next 2Y23.29%
EPS Next 3Y20.31%
5. Dividend
5.1 Amount
FUTU has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 9.57, FUTU has a dividend in line with its industry peers.
FUTU's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
FUTU is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y23.29%
EPS Next 3Y20.31%
FUTU HOLDINGS LTD-ADR
NASDAQ:FUTU (12/24/2024, 8:15:40 PM)
Premarket: 86.8 -0.2 (-0.23%)87
+0.81 (+0.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners36.4%
Inst Owner Change6.36%
Ins Owners15.26%
Ins Owner Change0%
Market Cap12.00B
Analysts84.17
Price Target115.91 (33.23%)
Short Float %6.32%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)5.53%
PT rev (3m)42.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)5.14%
EPS NY rev (3m)6.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)5.42%
Revenue NY rev (3m)7.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 13.62 | ||
| P/S | 9.31 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.79 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)4.39
EY5.05%
EPS(NY)6.39
Fwd EY7.34%
FCF(TTM)-5.99
FCFYN/A
OCF(TTM)-5.92
OCFYN/A
SpS9.34
BVpS22.93
TBVpS22.93
PEG (NY)1.04
PEG (5Y)0.13
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.49 |
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 Year24.46%
Revenue Next 2Y20.81%
Revenue Next 3Y17.66%
Revenue Next 5YN/A
EBIT growth 1Y40.31%
EBIT growth 3Y50.54%
EBIT growth 5Y88.8%
EBIT Next Year18.78%
EBIT Next 3Y21.31%
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