QIFU TECHNOLOGY INC (QFIN) Stock Fundamental Analysis
NASDAQ:QFIN - Nasdaq - US88557W1018 - ADR - Currency: USD
Taking everything into account, QFIN scores 8 out of 10 in our fundamental rating. QFIN was compared to 52 industry peers in the Consumer Finance industry. QFIN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. QFIN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, QFIN could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year QFIN was profitable.
In the past year QFIN had a positive cash flow from operations.
Each year in the past 5 years QFIN has been profitable.
Each year in the past 5 years QFIN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QFIN (12.40%) is better than 90.38% of its industry peers.
QFIN has a Return On Equity of 29.92%. This is amongst the best in the industry. QFIN outperforms 90.38% of its industry peers.
The Return On Invested Capital of QFIN (16.09%) is better than 86.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QFIN is significantly above the industry average of 10.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.4% | ||
| ROE | 29.92% | ||
| ROIC | 16.09% |
ROA(3y)10.78%
ROA(5y)12.79%
ROE(3y)22.26%
ROE(5y)28.34%
ROIC(3y)16.14%
ROIC(5y)20.6%
1.3 Margins
QFIN's Profit Margin of 38.98% is amongst the best of the industry. QFIN outperforms 96.15% of its industry peers.
QFIN's Profit Margin has improved in the last couple of years.
QFIN has a better Operating Margin (45.98%) than 96.15% of its industry peers.
QFIN's Operating Margin has improved in the last couple of years.
QFIN has a better Gross Margin (83.74%) than 78.85% of its industry peers.
QFIN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.98% | ||
| PM (TTM) | 38.98% | ||
| GM | 83.74% |
OM growth 3Y2.45%
OM growth 5Y6.92%
PM growth 3Y1.64%
PM growth 5Y6.1%
GM growth 3Y-1.31%
GM growth 5Y-1.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so QFIN is creating value.
The number of shares outstanding for QFIN has been reduced compared to 1 year ago.
Compared to 5 years ago, QFIN has less shares outstanding
Compared to 1 year ago, QFIN has a worse debt to assets ratio.
2.2 Solvency
QFIN has a debt to FCF ratio of 0.60. This is a very positive value and a sign of high solvency as it would only need 0.60 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.60, QFIN belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that QFIN is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.27, QFIN belongs to the best of the industry, outperforming 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.6 | ||
| Altman-Z | N/A |
ROIC/WACC2.42
WACC6.64%
2.3 Liquidity
A Current Ratio of 3.08 indicates that QFIN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.08, QFIN belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
QFIN has a Quick Ratio of 3.08. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN's Quick ratio of 3.08 is amongst the best of the industry. QFIN outperforms 82.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 |
3. Growth
3.1 Past
QFIN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.63%, which is quite impressive.
QFIN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.96% yearly.
QFIN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
QFIN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.24% yearly.
EPS 1Y (TTM)68.63%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%78.5%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%12.28%
3.2 Future
Based on estimates for the next years, QFIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.77% on average per year.
Based on estimates for the next years, QFIN will show a quite strong growth in Revenue. The Revenue will grow by 8.48% on average per year.
EPS Next Y27.61%
EPS Next 2Y21.34%
EPS Next 3Y18.77%
EPS Next 5YN/A
Revenue Next Year10.02%
Revenue Next 2Y8.26%
Revenue Next 3Y8.4%
Revenue Next 5Y8.48%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.32 indicates a rather cheap valuation of QFIN.
QFIN's Price/Earnings ratio is rather cheap when compared to the industry. QFIN is cheaper than 84.62% of the companies in the same industry.
QFIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 4.89, the valuation of QFIN can be described as very cheap.
82.69% of the companies in the same industry are more expensive than QFIN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, QFIN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 4.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.24 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
QFIN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
QFIN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as QFIN's earnings are expected to grow with 18.77% in the coming years.
PEG (NY)0.23
PEG (5Y)0.32
EPS Next 2Y21.34%
EPS Next 3Y18.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.86%, QFIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.66, QFIN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, QFIN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
QFIN has been paying a dividend for over 5 years, so it has already some track record.
QFIN has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y21.34%
EPS Next 3Y18.77%
42.99
-0.37 (-0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.53%
Inst Owner Change7.67%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.03B
Analysts86.67
Price Target54.48 (26.73%)
Short Float %9.36%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.19
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.7%
Min EPS beat(2)5.95%
Max EPS beat(2)9.46%
EPS beat(4)4
Avg EPS beat(4)15.4%
Min EPS beat(4)5.95%
Max EPS beat(4)25.25%
EPS beat(8)6
Avg EPS beat(8)9.11%
EPS beat(12)6
Avg EPS beat(12)3.86%
EPS beat(16)10
Avg EPS beat(16)7.34%
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.68%
PT rev (3m)18.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)27.91%
EPS NY rev (1m)3.18%
EPS NY rev (3m)13.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.31%
Revenue NY rev (3m)5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.32 | ||
| Fwd PE | 4.89 | ||
| P/S | 2.44 | ||
| P/FCF | 4.24 | ||
| P/OCF | 4.24 | ||
| P/B | 1.87 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)6.8
EY15.82%
EPS(NY)8.79
Fwd EY20.44%
FCF(TTM)10.14
FCFY23.59%
OCF(TTM)10.14
OCFY23.59%
SpS17.62
BVpS22.95
TBVpS22.9
PEG (NY)0.23
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.4% | ||
| ROE | 29.92% | ||
| ROCE | 20.74% | ||
| ROIC | 16.09% | ||
| ROICexc | 21.82% | ||
| ROICexgc | 21.86% | ||
| OM | 45.98% | ||
| PM (TTM) | 38.98% | ||
| GM | 83.74% | ||
| FCFM | 57.56% |
ROA(3y)10.78%
ROA(5y)12.79%
ROE(3y)22.26%
ROE(5y)28.34%
ROIC(3y)16.14%
ROIC(5y)20.6%
ROICexc(3y)21.28%
ROICexc(5y)29.69%
ROICexgc(3y)21.66%
ROICexgc(5y)30.56%
ROCE(3y)20.75%
ROCE(5y)26.35%
ROICexcg growth 3Y-15.46%
ROICexcg growth 5Y-0.3%
ROICexc growth 3Y-14.46%
ROICexc growth 5Y-1.13%
OM growth 3Y2.45%
OM growth 5Y6.92%
PM growth 3Y1.64%
PM growth 5Y6.1%
GM growth 3Y-1.31%
GM growth 5Y-1.19%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.6 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.06% | ||
| Profit Quality | 147.69% | ||
| Current Ratio | 3.08 | ||
| Quick Ratio | 3.08 | ||
| Altman-Z | N/A |
F-Score6
WACC6.64%
ROIC/WACC2.42
Cap/Depr(3y)135.39%
Cap/Depr(5y)97.38%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.41%
Profit Quality(3y)152.19%
Profit Quality(5y)141.63%
High Growth Momentum
Growth
EPS 1Y (TTM)68.63%
EPS 3Y4.38%
EPS 5Y19.96%
EPS Q2Q%78.5%
EPS Next Y27.61%
EPS Next 2Y21.34%
EPS Next 3Y18.77%
EPS Next 5YN/A
Revenue 1Y (TTM)5.1%
Revenue growth 3Y1.05%
Revenue growth 5Y13.24%
Sales Q2Q%12.28%
Revenue Next Year10.02%
Revenue Next 2Y8.26%
Revenue Next 3Y8.4%
Revenue Next 5Y8.48%
EBIT growth 1Y56.1%
EBIT growth 3Y3.52%
EBIT growth 5Y21.07%
EBIT Next Year8.28%
EBIT Next 3Y8.21%
EBIT Next 5Y8.32%
FCF growth 1Y62.69%
FCF growth 3Y16.75%
FCF growth 5Y25.49%
OCF growth 1Y62.69%
OCF growth 3Y17.3%
OCF growth 5Y25.74%