FUTU HOLDINGS LTD-ADR (FUTU) Stock Fundamental Analysis
USA - NASDAQ:FUTU - US36118L1061 - ADR
194.24 USD
-4.8 (-2.41%)
194.84 USD
+0.6 (+0.31%)
FUTU gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. While FUTU has a great profitability rating, there are some minor 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
In the past year FUTU was profitable.
FUTU had positive earnings in each of the past 5 years.
Of the past 5 years FUTU 4 years had a positive operating cash flow.
1.2 Ratios
FUTU has a better Return On Assets (3.99%) than 60.76% of its industry peers.
FUTU's Return On Equity of 23.77% is amongst the best of the industry. FUTU outperforms 90.72% of its industry peers.
FUTU has a better Return On Invested Capital (19.75%) than 97.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FUTU is significantly above the industry average of 7.59%.
The last Return On Invested Capital (19.75%) for FUTU is above the 3 year average (14.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 23.77% | ||
| ROIC | 19.75% |
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
The Profit Margin of FUTU (44.26%) is better than 86.92% of its industry peers.
In the last couple of years the Profit Margin of FUTU has grown nicely.
FUTU has a Operating Margin of 55.82%. This is amongst the best in the industry. FUTU outperforms 93.25% of its industry peers.
FUTU's Operating Margin has improved in the last couple of years.
FUTU has a better Gross Margin (84.22%) than 89.03% of its industry peers.
FUTU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 55.82% | ||
| PM (TTM) | 44.26% | ||
| GM | 84.22% |
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
FUTU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FUTU has more shares outstanding
The debt/assets ratio for FUTU has been reduced compared to a year ago.
2.2 Solvency
FUTU has an Altman-Z score of 1.36. This is a bad value and indicates that FUTU is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.36, FUTU is doing good in the industry, outperforming 62.03% of the companies in the same industry.
FUTU has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
FUTU's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. FUTU outperforms 73.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.18 indicates that FUTU should not have too much problems paying its short term obligations.
The Current ratio of FUTU (1.18) is comparable to the rest of the industry.
FUTU has a Quick Ratio of 1.18. 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 (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
FUTU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.47%, which is quite impressive.
Measured over the past years, FUTU shows a very strong growth in Earnings Per Share. The EPS has been growing by 90.12% on average per year.
Looking at the last year, FUTU shows a very strong growth in Revenue. The Revenue has grown by 66.35%.
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)80.47%
EPS 3Y28.79%
EPS 5Y90.12%
EPS Q2Q%103.67%
Revenue 1Y (TTM)66.35%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%69.73%
3.2 Future
FUTU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.95% yearly.
The Revenue is expected to grow by 25.65% on average over the next years. This is a very strong growth
EPS Next Y64.66%
EPS Next 2Y36.42%
EPS Next 3Y27.95%
EPS Next 5YN/A
Revenue Next Year55.78%
Revenue Next 2Y31.9%
Revenue Next 3Y25.65%
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 quite expensively with a Price/Earnings ratio of 25.76.
68.35% of the companies in the same industry are cheaper than FUTU, based on the Price/Earnings ratio.
FUTU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.67, which indicates a rather expensive current valuation of FUTU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FUTU indicates a slightly more expensive valuation: FUTU is more expensive than 60.34% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. FUTU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 19.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FUTU indicates a somewhat cheap valuation: FUTU is cheaper than 69.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.43 |
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 27.95% in the coming years.
PEG (NY)0.4
PEG (5Y)0.29
EPS Next 2Y36.42%
EPS Next 3Y27.95%
5. Dividend
5.1 Amount
FUTU has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
FUTU's Dividend Yield is slightly below the industry average, which is at 8.40.
Compared to an average S&P500 Dividend Yield of 2.37, FUTU's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y36.42%
EPS Next 3Y27.95%
194.24
-4.8 (-2.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners44.45%
Inst Owner Change1.64%
Ins Owners15.05%
Ins Owner Change0%
Market Cap27.04B
Revenue(TTM)17.87B
Net Income(TTM)7.91B
Analysts84.62
Price Target209.39 (7.8%)
Short Float %30.39%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)2
Avg EPS beat(2)17.23%
Min EPS beat(2)10.55%
Max EPS beat(2)23.91%
EPS beat(4)3
Avg EPS beat(4)11.8%
Min EPS beat(4)-0.47%
Max EPS beat(4)23.91%
EPS beat(8)6
Avg EPS beat(8)8.85%
EPS beat(12)10
Avg EPS beat(12)15.53%
EPS beat(16)11
Avg EPS beat(16)6.13%
Revenue beat(2)2
Avg Revenue beat(2)5.44%
Min Revenue beat(2)3.27%
Max Revenue beat(2)7.62%
Revenue beat(4)4
Avg Revenue beat(4)7.39%
Min Revenue beat(4)3.27%
Max Revenue beat(4)13.68%
Revenue beat(8)7
Avg Revenue beat(8)4.56%
Revenue beat(12)11
Avg Revenue beat(12)8.24%
Revenue beat(16)13
Avg Revenue beat(16)5.39%
PT rev (1m)0.95%
PT rev (3m)41.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)380.48%
EPS NY rev (1m)-1.76%
EPS NY rev (3m)15.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)26.83%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)10.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.76 | ||
| Fwd PE | 19.67 | ||
| P/S | 11.76 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.31 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 21.43 |
EPS(TTM)7.54
EY3.88%
EPS(NY)9.87
Fwd EY5.08%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS16.52
BVpS30.77
TBVpS30.77
PEG (NY)0.4
PEG (5Y)0.29
Graham Number72.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.99% | ||
| ROE | 23.77% | ||
| ROCE | 29.67% | ||
| ROIC | 19.75% | ||
| ROICexc | 19.75% | ||
| ROICexgc | 19.75% | ||
| OM | 55.82% | ||
| PM (TTM) | 44.26% | ||
| GM | 84.22% | ||
| FCFM | N/A |
ROA(3y)3.64%
ROA(5y)3.11%
ROE(3y)16.96%
ROE(5y)16.05%
ROIC(3y)14.12%
ROIC(5y)11.45%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.27%
ROCE(5y)18.61%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-ScoreN/A
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.36 |
F-ScoreN/A
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)177.61%
Cap/Depr(5y)178.03%
Cap/Sales(3y)1.07%
Cap/Sales(5y)1.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)80.47%
EPS 3Y28.79%
EPS 5Y90.12%
EPS Q2Q%103.67%
EPS Next Y64.66%
EPS Next 2Y36.42%
EPS Next 3Y27.95%
EPS Next 5YN/A
Revenue 1Y (TTM)66.35%
Revenue growth 3Y24.07%
Revenue growth 5Y66.52%
Sales Q2Q%69.73%
Revenue Next Year55.78%
Revenue Next 2Y31.9%
Revenue Next 3Y25.65%
Revenue Next 5YN/A
EBIT growth 1Y98.88%
EBIT growth 3Y27.66%
EBIT growth 5Y103.88%
EBIT Next Year89.69%
EBIT Next 3Y33.02%
EBIT Next 5YN/A
FCF growth 1Y580.56%
FCF growth 3Y73.12%
FCF growth 5Y75.51%
OCF growth 1Y589.1%
OCF growth 3Y72.76%
OCF growth 5Y73.54%
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.
Can you provide the valuation status for FUTU HOLDINGS LTD-ADR?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the financial health for FUTU stock?
The financial health rating of FUTU HOLDINGS LTD-ADR (FUTU) is 4 / 10.
What is the expected EPS growth for FUTU HOLDINGS LTD-ADR (FUTU) stock?
The Earnings per Share (EPS) of FUTU HOLDINGS LTD-ADR (FUTU) is expected to grow by 64.66% in the next year.