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FUTU HOLDINGS LTD-ADR (FUTU) Stock Fundamental Analysis

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

113  -3.79 (-3.25%)

Premarket: 110.52 -2.48 (-2.19%)

Fundamental Rating

6

Overall FUTU gets a fundamental rating of 6 out of 10. We evaluated FUTU against 223 industry peers in the Capital Markets industry. While FUTU belongs to the best of the industry regarding profitability, 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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8

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.
Of the past 5 years FUTU 4 years had a positive operating cash flow.
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

FUTU has a better Return On Assets (4.41%) than 61.44% of its industry peers.
FUTU has a Return On Equity of 17.43%. This is in the better half of the industry: FUTU outperforms 79.82% of its industry peers.
FUTU's Return On Invested Capital of 14.25% is amongst the best of the industry. FUTU outperforms 91.03% of its industry peers.
FUTU had an Average Return On Invested Capital over the past 3 years of 12.00%. This is above the industry average of 7.05%.
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

FUTU has a better Profit Margin (42.78%) than 83.41% of its industry peers.
In the last couple of years the Profit Margin of FUTU has grown nicely.
With an excellent Operating Margin value of 50.03%, FUTU belongs to the best of the industry, outperforming 87.89% of the companies in the same industry.
In the last couple of years the Operating Margin of FUTU has grown nicely.
FUTU has a better Gross Margin (84.65%) than 88.34% 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
FUTU has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FUTU is higher compared to a year ago.
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

Based on the Altman-Z score of 1.72, we must say that FUTU is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.72, FUTU is doing good in the industry, outperforming 68.16% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that FUTU is not too dependend on debt financing.
The Debt to Equity ratio of FUTU (0.23) is better than 77.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF N/A
Altman-Z 1.72
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.
With a Current ratio value of 1.32, FUTU perfoms like the industry average, outperforming 56.05% of the companies in the same industry.
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

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.
Looking at the last year, FUTU shows a very strong growth in Revenue. The Revenue has grown by 31.45%.
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

The Earnings Per Share is expected to grow by 21.79% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.21% on average over the next years. This is quite good.
EPS Next Y20.65%
EPS Next 2Y25.99%
EPS Next 3Y21.79%
EPS Next 5YN/A
Revenue Next Year26.26%
Revenue Next 2Y22.42%
Revenue Next 3Y19.21%
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

A Price/Earnings ratio of 25.74 indicates a quite expensive valuation of FUTU.
65.92% of the companies in the same industry are cheaper than FUTU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FUTU to the average of the S&P500 Index (29.35), we can say FUTU is valued inline with the index average.
With a Price/Forward Earnings ratio of 16.94, FUTU is valued correctly.
FUTU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of FUTU to the average of the S&P500 Index (22.10), we can say FUTU is valued slightly cheaper.
Industry RankSector Rank
PE 25.74
Fwd PE 16.94
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FUTU indicates a rather cheap valuation: FUTU is cheaper than 81.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.88
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 21.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)0.17
EPS Next 2Y25.99%
EPS Next 3Y21.79%

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1

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.84%, FUTU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.65, FUTU is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.33, FUTU is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.84%

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
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 2Y25.99%
EPS Next 3Y21.79%
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 (3/7/2025, 8:00:01 PM)

Premarket: 110.52 -2.48 (-2.19%)

113

-3.79 (-3.25%)

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 Owners38.67%
Inst Owner Change3.89%
Ins Owners15.26%
Ins Owner Change0%
Market Cap15.59B
Analysts83.64
Price Target124.69 (10.35%)
Short Float %49.21%
Short Ratio1.97
Dividend
Industry RankSector Rank
Dividend Yield 1.84%
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)7.58%
PT rev (3m)7.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.34%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)1.23%
Valuation
Industry RankSector Rank
PE 25.74
Fwd PE 16.94
P/S 12.1
P/FCF N/A
P/OCF N/A
P/B 4.93
P/tB 4.93
EV/EBITDA 12.88
EPS(TTM)4.39
EY3.88%
EPS(NY)6.67
Fwd EY5.9%
FCF(TTM)-5.99
FCFYN/A
OCF(TTM)-5.91
OCFYN/A
SpS9.34
BVpS22.93
TBVpS22.93
PEG (NY)1.25
PEG (5Y)0.17
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 1.72
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 Y20.65%
EPS Next 2Y25.99%
EPS Next 3Y21.79%
EPS Next 5YN/A
Revenue 1Y (TTM)31.45%
Revenue growth 3Y44.59%
Revenue growth 5Y65.28%
Sales Q2Q%29.65%
Revenue Next Year26.26%
Revenue Next 2Y22.42%
Revenue Next 3Y19.21%
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