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QIFU TECHNOLOGY INC (QFIN) Stock Fundamental Analysis

NASDAQ:QFIN - Nasdaq - US88557W1018 - ADR

39  +0.02 (+0.05%)

Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to QFIN. QFIN was compared to 53 industry peers in the Consumer Finance industry. QFIN gets an excellent profitability rating and is at the same time showing great financial health properties. QFIN is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make QFIN suitable for value and growth and quality investing!


Dividend Valuation Growth Profitability Health

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8

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.
QFIN had positive earnings in each of the past 5 years.
Each year in the past 5 years QFIN had a positive operating cash flow.
QFIN Yearly Net Income VS EBIT VS OCF VS FCFQFIN 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 2B 4B 6B

1.2 Ratios

The Return On Assets of QFIN (11.62%) is better than 92.31% of its industry peers.
QFIN's Return On Equity of 23.90% is amongst the best of the industry. QFIN outperforms 86.54% of its industry peers.
QFIN's Return On Invested Capital of 18.00% is amongst the best of the industry. QFIN outperforms 96.15% of its industry peers.
QFIN had an Average Return On Invested Capital over the past 3 years of 19.66%. This is significantly above the industry average of 7.34%.
Industry RankSector Rank
ROA 11.62%
ROE 23.9%
ROIC 18%
ROA(3y)12.19%
ROA(5y)12.64%
ROE(3y)26.3%
ROE(5y)30.1%
ROIC(3y)19.66%
ROIC(5y)21.79%
QFIN Yearly ROA, ROE, ROICQFIN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100

1.3 Margins

QFIN has a better Profit Margin (31.78%) than 92.31% of its industry peers.
QFIN's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 40.27%, QFIN belongs to the best of the industry, outperforming 98.08% of the companies in the same industry.
In the last couple of years the Operating Margin of QFIN has declined.
Looking at the Gross Margin, with a value of 83.13%, QFIN belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
QFIN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 40.27%
PM (TTM) 31.78%
GM 83.13%
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%
QFIN Yearly Profit, Operating, Gross MarginsQFIN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 80

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QFIN is creating value.
The number of shares outstanding for QFIN has been reduced compared to 1 year ago.
The number of shares outstanding for QFIN has been increased compared to 5 years ago.
The debt/assets ratio for QFIN is higher compared to a year ago.
QFIN Yearly Shares OutstandingQFIN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
QFIN Yearly Total Debt VS Total AssetsQFIN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

QFIN has a debt to FCF ratio of 0.12. This is a very positive value and a sign of high solvency as it would only need 0.12 years to pay back of all of its debts.
QFIN has a Debt to FCF ratio of 0.12. This is amongst the best in the industry. QFIN outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that QFIN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.05, QFIN belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.12
Altman-Z N/A
ROIC/WACC2.41
WACC7.48%
QFIN Yearly LT Debt VS Equity VS FCFQFIN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B

2.3 Liquidity

QFIN has a Current Ratio of 2.56. This indicates that QFIN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.56, QFIN is doing good in the industry, outperforming 73.08% of the companies in the same industry.
A Quick Ratio of 2.56 indicates that QFIN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.56, QFIN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.56
Quick Ratio 2.56
QFIN Yearly Current Assets VS Current LiabilitesQFIN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 40.63% over the past year.
QFIN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.42% yearly.
The Revenue has grown by 9.41% in the past year. This is quite good.
Measured over the past years, QFIN shows a very strong growth in Revenue. The Revenue has been growing by 29.65% on average per year.
EPS 1Y (TTM)40.63%
EPS 3Y3.42%
EPS 5YN/A
EPS Q2Q%71.53%
Revenue 1Y (TTM)9.41%
Revenue growth 3Y6.29%
Revenue growth 5Y29.65%
Sales Q2Q%2.08%

3.2 Future

The Earnings Per Share is expected to grow by 27.08% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.18% on average over the next years. This is quite good.
EPS Next Y55.03%
EPS Next 2Y32.72%
EPS Next 3Y27.08%
EPS Next 5YN/A
Revenue Next Year5.43%
Revenue Next 2Y4.69%
Revenue Next 3Y4.68%
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.
QFIN Yearly Revenue VS EstimatesQFIN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
QFIN Yearly EPS VS EstimatesQFIN Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10 20 30 40 50

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9

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.83, the valuation of QFIN can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of QFIN indicates a somewhat cheap valuation: QFIN is cheaper than 78.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, QFIN is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.93, 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 86.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. QFIN is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 7.83
Fwd PE 5.93
QFIN Price Earnings VS Forward Price EarningsQFIN 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 QFIN indicates a rather cheap valuation: QFIN is cheaper than 84.62% of the companies listed in the same industry.
QFIN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. QFIN is cheaper than 63.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.1
EV/EBITDA 4.8
QFIN Per share dataQFIN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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 27.08% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y32.72%
EPS Next 3Y27.08%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.13%, QFIN has a reasonable but not impressive dividend return.
QFIN's Dividend Yield is a higher than the industry average which is at 4.39.
Compared to an average S&P500 Dividend Yield of 2.28, QFIN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.13%

5.2 History

QFIN has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
QFIN Yearly Dividends per shareQFIN Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

DPN/A
EPS Next 2Y32.72%
EPS Next 3Y27.08%
QFIN Yearly Income VS Free CF VS DividendQFIN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

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QIFU TECHNOLOGY INC

NASDAQ:QFIN (1/22/2025, 10:22:56 AM)

39

+0.02 (+0.05%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)11-19 2024-11-19/amc
Earnings (Next)N/A N/A
Inst Owners70.81%
Inst Owner Change0.08%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.05B
Analysts87.37
Price Target42.52 (9.03%)
Short Float %3.7%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield 3.13%
Yearly Dividend2.95
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.1%
Min EPS beat(2)20.96%
Max EPS beat(2)25.25%
EPS beat(4)3
Avg EPS beat(4)12.39%
Min EPS beat(4)-0.43%
Max EPS beat(4)25.25%
EPS beat(8)4
Avg EPS beat(8)4.58%
EPS beat(12)6
Avg EPS beat(12)4.58%
EPS beat(16)10
Avg EPS beat(16)11.93%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)3.02%
Revenue beat(4)2
Avg Revenue beat(4)0.26%
Min Revenue beat(4)-3.35%
Max Revenue beat(4)3.49%
Revenue beat(8)4
Avg Revenue beat(8)0.55%
Revenue beat(12)5
Avg Revenue beat(12)-5.07%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.24%
PT rev (3m)46.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)70.67%
EPS NY rev (1m)0%
EPS NY rev (3m)12.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.04%
Valuation
Industry RankSector Rank
PE 7.83
Fwd PE 5.93
P/S 2.57
P/FCF 5.1
P/OCF 5.1
P/B 1.93
P/tB 1.94
EV/EBITDA 4.8
EPS(TTM)4.98
EY12.77%
EPS(NY)6.58
Fwd EY16.88%
FCF(TTM)7.64
FCFY19.6%
OCF(TTM)7.64
OCFY19.6%
SpS15.19
BVpS20.2
TBVpS20.15
PEG (NY)0.14
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 11.62%
ROE 23.9%
ROCE 22.51%
ROIC 18%
ROICexc 23.47%
ROICexgc 23.53%
OM 40.27%
PM (TTM) 31.78%
GM 83.13%
FCFM 50.31%
ROA(3y)12.19%
ROA(5y)12.64%
ROE(3y)26.3%
ROE(5y)30.1%
ROIC(3y)19.66%
ROIC(5y)21.79%
ROICexc(3y)27.11%
ROICexc(5y)30.97%
ROICexgc(3y)28.24%
ROICexgc(5y)31.65%
ROCE(3y)24.25%
ROCE(5y)26.85%
ROICexcg growth 3Y-27.19%
ROICexcg growth 5Y-16.94%
ROICexc growth 3Y-27.24%
ROICexc growth 5Y-16.97%
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%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.12
Debt/EBITDA 0.15
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 123.63%
Profit Quality 158.32%
Current Ratio 2.56
Quick Ratio 2.56
Altman-Z N/A
F-Score7
WACC7.48%
ROIC/WACC2.41
Cap/Depr(3y)72.1%
Cap/Depr(5y)119.1%
Cap/Sales(3y)0.32%
Cap/Sales(5y)0.27%
Profit Quality(3y)136.62%
Profit Quality(5y)135.9%
High Growth Momentum
Growth
EPS 1Y (TTM)40.63%
EPS 3Y3.42%
EPS 5YN/A
EPS Q2Q%71.53%
EPS Next Y55.03%
EPS Next 2Y32.72%
EPS Next 3Y27.08%
EPS Next 5YN/A
Revenue 1Y (TTM)9.41%
Revenue growth 3Y6.29%
Revenue growth 5Y29.65%
Sales Q2Q%2.08%
Revenue Next Year5.43%
Revenue Next 2Y4.69%
Revenue Next 3Y4.68%
Revenue Next 5Y8.18%
EBIT growth 1Y53.01%
EBIT growth 3Y8.62%
EBIT growth 5Y24.18%
EBIT Next Year38.93%
EBIT Next 3Y14.72%
EBIT Next 5Y11.67%
FCF growth 1Y69.69%
FCF growth 3Y9.71%
FCF growth 5Y90.92%
OCF growth 1Y69.69%
OCF growth 3Y10.15%
OCF growth 5Y90.32%