Futu Holdings (FUTU) AI Stock Analysis

• Market Cap: $22.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.45
• Revenue Growth: 81.43%
• EPS Growth: 119.47%
• Country: US
• Employees: 3,343
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 3.02
• Shares Outstanding: 94,783,490
• 10 Day Avg. Volume: 1,141,445
• 30 Day Avg. Volume: 1,323,928
• PEG Ratio: 0.59
• Price to Book (P/B): 3.11
• Price to Sales (P/S): 6.40
• P/FCF Ratio: 2.82
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 1.62
• Enterprise Value/Ebitda: 2.45
• 1Y Price Target: $222.55
• Price Target Upside: 35.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 9.96
• Revenue Forecast (FY): $2.83B

• Rating: 70 Outperform
• Price Target: $185.00 ▲(12.35% Upside)

Futu Holdings' strong financial performance and positive earnings call sentiment are the primary drivers of its score. However, technical indicators suggest potential short-term bearish momentum, and valuation metrics indicate moderate attractiveness. Cash flow management remains a concern.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Futu's services and successful market expansion, enhancing long-term financial stability.

Market Position

Expanding client base in key markets strengthens Futu's competitive position and supports sustained growth in the online brokerage industry.

Profitability

Significant net income growth reflects effective cost management and operational efficiency, supporting long-term profitability.

Negative Factors

Cash Flow Management

Inconsistent cash flow management can limit Futu's ability to reinvest in growth opportunities and manage financial obligations effectively.

Operating Expenses

Rising operating expenses may pressure margins and reduce profitability, challenging Futu's cost management strategies.

Customer Acquisition Costs

Increasing customer acquisition costs could impact Futu's profitability if not offset by higher lifetime value of acquired clients.

Futu Holdings Business Overview & Revenue Model

Company Description

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

Futu Holdings generates revenue through several key streams. Primarily, the company earns money from commissions on trades executed through its platform, both for retail and institutional clients. Additionally, Futu charges fees for various value-added services such as margin financing and wealth management products. The firm also benefits from interest income generated from clients' margin accounts. Furthermore, Futu engages in partnerships and collaborations with other financial institutions and technology providers, which may contribute additional revenue through shared services and co-branded offerings. The growing number of active users on its platform also enhances its earnings potential as it scales its operations.

Futu Holdings Financial Statement Overview

Summary

Futu Holdings demonstrates strong revenue growth and profitability with high margins and no debt, indicating solid financial health. However, cash flow inconsistencies suggest challenges in cash management.

Income Statement

Futu Holdings has demonstrated strong revenue growth, with Total Revenue increasing significantly over the years. The Gross Profit Margin remains high at 100% for 2024, indicating effective cost management. Net Profit Margin has also improved, reaching 45.5% in 2024 from 47.05% in 2023. The EBIT Margin is robust at 55.3% for 2024. However, the absence of EBITDA data in 2024 slightly limits the full profitability assessment.

Balance Sheet

The company maintains a strong equity position with Stockholders' Equity steadily rising. The Debt-to-Equity Ratio is favorable at 0, indicating no debt burden. The Return on Equity (ROE) is impressive, rising to 19.4% in 2024, suggesting efficient use of equity. Equity Ratio stands at 17.5% for 2024, reflecting a balanced asset structure. The lack of debt enhances financial stability but also limits leverage for potential growth.

Cash Flow

Cash flow performance is mixed. The Free Cash Flow has fluctuated, showing significant declines in recent years. The Operating Cash Flow to Net Income Ratio is unavailable for 2024, limiting insight into cash conversion efficiency. The Free Cash Flow to Net Income Ratio is also not calculable due to missing data, indicating potential challenges in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.87B	13.59B	10.01B	7.61B	7.12B	3.31B
Gross Profit	15.05B	11.14B	8.47B	6.62B	5.91B	2.61B
EBITDA	9.98B	6.80B	5.18B	3.72B	3.30B	1.55B
Net Income	7.91B	5.44B	4.28B	2.93B	2.81B	1.33B
Balance Sheet
Total Assets	198.40B	158.76B	97.14B	94.50B	101.54B	71.34B
Cash, Cash Equivalents and Short-Term Investments	9.38B	14.42B	8.19B	5.74B	5.83B	1.33B
Total Debt	9.79B	8.55B	5.89B	2.69B	21.91B	16.61B
Total Liabilities	165.12B	130.75B	72.56B	73.64B	80.55B	63.03B
Stockholders Equity	33.29B	28.01B	24.57B	20.86B	20.99B	8.31B
Cash Flow
Free Cash Flow	0.00	30.83B	-6.42B	3.38B	5.94B	20.41B
Operating Cash Flow	0.00	31.00B	-6.34B	3.47B	6.01B	20.46B
Investing Cash Flow	0.00	103.93M	-2.44B	93.86M	-963.57M	-244.18M
Financing Cash Flow	0.00	70.85M	2.31B	-7.01B	10.55B	8.41B

Futu Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 164.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUTU, the sentiment is Negative. The current price of 164.66 is below the 20-day moving average (MA) of 168.42, below the 50-day MA of 172.40, and above the 200-day MA of 143.33, indicating a neutral trend. The MACD of -2.62 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 22.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FUTU.

Futu Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RJF	76 Outperform	$32.06B	15.83	17.64%	1.26%	6.45%	5.85%
SCHW	74 Outperform	$175.60B	23.18	17.05%	1.09%	5.90%	66.60%
TW	71 Outperform	$24.72B	35.70	10.51%	0.46%	22.17%	40.13%
FUTU	70 Outperform	$22.91B	18.40	30.24%	―	81.43%	119.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TIGR	68 Neutral	$1.59B	10.77	22.84%	―	65.74%	345.40%
LPLA	66 Neutral	$29.01B	33.36	21.32%	0.33%	35.19%	-18.62%

Futu Holdings Corporate Events

Futu Holdings Reports Strong Q3 2025 Financial Growth

Futu Holdings Limited announced its unaudited financial results for the third quarter of 2025, showing significant growth across various metrics. The company reported a 42.6% year-over-year increase in funded accounts, reaching over 3.1 million, and a 104.8% rise in total trading volume to HK$3.90 trillion. Financially, Futu’s total revenues surged by 86.3% to HK$6,402.9 million, with net income increasing by 143.9% to HK$3,217.2 million. The company’s strategic focus on expanding its client base in Hong Kong and Malaysia, along with enhancements in product localization and AI tools, contributed to its robust performance. The announcement underscores Futu’s strengthened market position and its continued growth trajectory in the online brokerage and wealth management industry.