QIFU TECHNOLOGY INC (QFIN)
US88557W1018 - ADR
Overall QFIN gets a fundamental rating of 7 out of 10. We evaluated QFIN against 51 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 has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, QFIN could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
QFIN had positive earnings in the past year.
QFIN had a positive operating cash flow in the past year.
In the past 5 years QFIN has always been profitable.
Each year in the past 5 years QFIN had a positive operating cash flow.
1.2 Ratios
QFIN has a Return On Assets of 10.21%. This is amongst the best in the industry. QFIN outperforms 92.16% of its industry peers.
The Return On Equity of QFIN (21.26%) is better than 84.31% of its industry peers.
The Return On Invested Capital of QFIN (15.97%) is better than 92.16% 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 7.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.21% | ||
| ROE | 21.26% | ||
| ROIC | 15.97% |
ROA(3y)12.19%
ROA(5y)12.64%
ROE(3y)26.3%
ROE(5y)30.1%
ROIC(3y)19.66%
ROIC(5y)21.79%
1.3 Margins
QFIN's Profit Margin of 28.08% is amongst the best of the industry. QFIN outperforms 92.16% of its industry peers.
QFIN's Profit Margin has been stable in the last couple of years.
QFIN has a Operating Margin of 35.21%. This is amongst the best in the industry. QFIN outperforms 94.12% of its industry peers.
In the last couple of years the Operating Margin of QFIN has declined.
With an excellent Gross Margin value of 83.44%, QFIN belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
QFIN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.21% | ||
| PM (TTM) | 28.08% | ||
| GM | 83.44% |
OM growth 3Y2.19%
OM growth 5Y-4.22%
PM growth 3Y0.67%
PM growth 5YN/A
GM growth 3Y-1.74%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QFIN is creating value.
QFIN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for QFIN has been increased compared to 5 years ago.
Compared to 1 year ago, QFIN has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of QFIN is 0.14, which is an excellent value as it means it would take QFIN, only 0.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.14, QFIN belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
QFIN has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
QFIN's Debt to Equity ratio of 0.05 is amongst the best of the industry. QFIN outperforms 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.14 | ||
| Altman-Z | N/A |
ROIC/WACC2.13
WACC7.48%
2.3 Liquidity
QFIN has a Current Ratio of 2.45. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.45, QFIN is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
QFIN has a Quick Ratio of 2.45. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
QFIN has a Quick ratio of 2.45. This is in the better half of the industry: QFIN outperforms 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.58% over the past year.
Measured over the past 5 years, QFIN shows a small growth in Earnings Per Share. The EPS has been growing by 3.42% on average per year.
The Revenue has decreased by -1.59% in the past year.
QFIN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.65% yearly.
EPS 1Y (TTM)41.58%
EPS 3Y3.42%
EPS 5YN/A
EPS Q2Q%74.95%
Revenue 1Y (TTM)-1.59%
Revenue growth 3Y6.29%
Revenue growth 5Y29.65%
Sales Q2Q%5.31%
3.2 Future
Based on estimates for the next years, QFIN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.77% 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 8.18% on average per year.
EPS Next Y38.4%
EPS Next 2Y23.3%
EPS Next 3Y20.77%
EPS Next 5YN/A
Revenue Next Year3.33%
Revenue Next 2Y3.86%
Revenue Next 3Y5.47%
Revenue Next 5Y8.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
QFIN is valuated cheaply with a Price/Earnings ratio of 6.99.
Based on the Price/Earnings ratio, QFIN is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. QFIN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.17, the valuation of QFIN can be described as very cheap.
QFIN's Price/Forward Earnings ratio is rather cheap when compared to the industry. QFIN is cheaper than 82.35% of the companies in the same industry.
QFIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 6.17 |
4.2 Price Multiples
86.27% of the companies in the same industry are more expensive than QFIN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QFIN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.27 | ||
| EV/EBITDA | 5.37 |
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 20.77% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y23.3%
EPS Next 3Y20.77%
5. Dividend
5.1 Amount
QFIN has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
QFIN's Dividend Yield is a higher than the industry average which is at 4.08.
Compared to an average S&P500 Dividend Yield of 2.23, QFIN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
QFIN has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y23.3%
EPS Next 3Y20.77%
QIFU TECHNOLOGY INC
NASDAQ:QFIN (11/21/2024, 7:52:34 PM)
After market: 35.3699 +0.16 (+0.45%)35.21
-0.04 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.47B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 6.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.21% | ||
| ROE | 21.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.21% | ||
| PM (TTM) | 28.08% | ||
| GM | 83.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.45 | ||
| Quick Ratio | 2.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)41.58%
EPS 3Y3.42%
EPS 5Y
EPS Q2Q%
EPS Next Y38.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.59%
Revenue growth 3Y6.29%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y