Qfin Holdings, Inc.
Qfin Holdings, Inc. Fundamental Analysis
Qfin Holdings, Inc. (QFIN) shows strong financial fundamentals with a PE ratio of 1.96, profit margin of 38.10%, and ROE of 28.82%. The company generates $18.0B in annual revenue with moderate year-over-year growth of 5.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze QFIN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentQFIN demonstrates superior asset utilization.
Valuation Score
ExcellentQFIN trades at attractive valuation levels.
Growth Score
ExcellentQFIN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentQFIN maintains a strong and stable balance sheet.
Profitability Score
ExcellentQFIN achieves industry-leading margins.
Key Financial Metrics
Is QFIN Expensive or Cheap?
P/E Ratio
QFIN trades at 1.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, QFIN's PEG of -0.12 indicates potential undervaluation.
Price to Book
The market values Qfin Holdings, Inc. at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.50 times EBITDA. This is generally considered low.
How Well Does QFIN Make Money?
Net Profit Margin
For every $100 in sales, Qfin Holdings, Inc. keeps $38.10 as profit after all expenses.
Operating Margin
Core operations generate 44.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.82 in profit for every $100 of shareholder equity.
ROA
Qfin Holdings, Inc. generates $11.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Qfin Holdings, Inc. generates strong operating cash flow of $10.91B, reflecting robust business health.
Free Cash Flow
Qfin Holdings, Inc. generates strong free cash flow of $10.76B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $82.67 in free cash annually.
FCF Yield
QFIN converts 80.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How QFIN Stacks Against Its Sector Peers
| Metric | QFIN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.96 | 18.86 | Better (Cheaper) |
| ROE | 28.82% | 847.00% | Weak |
| Net Margin | 38.10% | 4202.00% | Weak |
| Debt/Equity | 0.26 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 2.94 | 667.17 | Strong Liquidity |
| ROA | 11.21% | -21543.00% (disorted) | Strong |
QFIN outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Qfin Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.44%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
142.70%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
204.58%
Industry Style: Value, Dividend, Cyclical
High Growth