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QIFU TECHNOLOGY INC (QFIN) Stock Fundamental Analysis

NASDAQ:QFIN - Nasdaq - US88557W1018 - ADR - Currency: USD

41.94  -0.48 (-1.13%)

After market: 41.88 -0.06 (-0.14%)

Fundamental Rating

7

Taking everything into account, QFIN scores 7 out of 10 in our fundamental rating. QFIN was compared to 53 industry peers in the Consumer Finance industry. Both the health and profitability get an excellent rating, making QFIN a very profitable company, without any liquidiy or solvency issues. An interesting combination arises when we look at growth and value: QFIN is growing strongly while it also seems undervalued. These ratings could make QFIN a good candidate for value and growth and quality investing.


Dividend Valuation Growth Profitability Health

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8

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.
QFIN had positive earnings in each of the past 5 years.
In the past 5 years QFIN always reported a positive cash flow from operatings.
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

QFIN's Return On Assets of 11.62% is amongst the best of the industry. QFIN outperforms 92.31% of its industry peers.
QFIN has a better Return On Equity (23.90%) than 84.62% of its industry peers.
With an excellent Return On Invested Capital value of 18.00%, QFIN belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for QFIN is significantly above the industry average of 7.30%.
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

With an excellent Profit Margin value of 31.78%, QFIN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
QFIN's Profit Margin has been stable in the last couple of years.
QFIN has a Operating Margin of 40.27%. This is amongst the best in the industry. QFIN outperforms 98.08% of its industry peers.
QFIN's Operating Margin has declined in the last couple of years.
QFIN has a better Gross Margin (83.13%) than 80.77% of its industry peers.
In the last couple of years the Gross Margin of QFIN has remained more or less at the same level.
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

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.
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.
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 better Debt to FCF ratio (0.12) than 92.31% of its industry peers.
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 86.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.12
Altman-Z N/A
ROIC/WACC2.4
WACC7.49%
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.
Looking at the Current ratio, with a value of 2.56, QFIN is in the better half of the industry, outperforming 69.23% 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.
With a decent Quick ratio value of 2.56, QFIN is doing good in the industry, outperforming 71.15% 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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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 40.63% 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 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

Based on estimates for the next years, QFIN will show a very strong growth in Earnings Per Share. The EPS will grow by 27.08% on average per year.
The Revenue is expected to grow by 6.73% on average over the next years.
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 5Y6.73%

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

A Price/Earnings ratio of 8.40 indicates a reasonable valuation of QFIN.
Based on the Price/Earnings ratio, QFIN is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, QFIN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.35, the valuation of QFIN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of QFIN indicates a rather cheap valuation: QFIN is cheaper than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, QFIN is valued rather cheaply.
Industry RankSector Rank
PE 8.4
Fwd PE 6.35
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

Based on the Enterprise Value to EBITDA ratio, QFIN is valued cheaper than 82.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QFIN is valued a bit cheaper than 61.54% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.47
EV/EBITDA 5.33
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.
The excellent profitability rating of QFIN 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)0.15
PEG (5Y)N/A
EPS Next 2Y32.72%
EPS Next 3Y27.08%

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3

5. Dividend

5.1 Amount

QFIN has a Yearly Dividend Yield of 2.64%. 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 4.09.
QFIN's Dividend Yield is comparable with the S&P500 average which is at 2.29.
Industry RankSector Rank
Dividend Yield 2.64%

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 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 (2/21/2025, 8:00:01 PM)

After market: 41.88 -0.06 (-0.14%)

41.94

-0.48 (-1.13%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)11-19 2024-11-19/amc
Earnings (Next)03-10 2025-03-10/amc
Inst Owners70.81%
Inst Owner Change-0.7%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.51B
Analysts86.67
Price Target42.52 (1.38%)
Short Float %3.69%
Short Ratio2.29
Dividend
Industry RankSector Rank
Dividend Yield 2.64%
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)0%
PT rev (3m)33.8%
EPS NQ rev (1m)-24.39%
EPS NQ rev (3m)29.05%
EPS NY rev (1m)0%
EPS NY rev (3m)12.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.03%
Valuation
Industry RankSector Rank
PE 8.4
Fwd PE 6.35
P/S 2.75
P/FCF 5.47
P/OCF 5.47
P/B 2.07
P/tB 2.07
EV/EBITDA 5.33
EPS(TTM)4.99
EY11.9%
EPS(NY)6.6
Fwd EY15.75%
FCF(TTM)7.67
FCFY18.29%
OCF(TTM)7.67
OCFY18.29%
SpS15.24
BVpS20.27
TBVpS20.22
PEG (NY)0.15
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
WACC7.49%
ROIC/WACC2.4
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 5Y6.73%
EBIT growth 1Y53.01%
EBIT growth 3Y8.62%
EBIT growth 5Y24.18%
EBIT Next Year38.93%
EBIT Next 3Y14.72%
EBIT Next 5Y13.64%
FCF growth 1Y69.69%
FCF growth 3Y9.71%
FCF growth 5Y90.92%
OCF growth 1Y69.69%
OCF growth 3Y10.15%
OCF growth 5Y90.32%