Futu Holdings (FUTU) AI Stock Analysis

• Market Cap: $29.39B
• Dividend Yield: N/A
• Average Volume (3M): 2.36M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.39
• Revenue Growth: 66.97%
• EPS Growth: 86.46%
• Country: US
• Employees: 3,343
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Capital Markets
• EPS (TTM): 2.42
• Shares Outstanding: 94,783,490
• 10 Day Avg. Volume: 2,752,250
• 30 Day Avg. Volume: 2,355,483
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 2.65
• 1Y Price Target: $214.68
• Price Target Upside: 10.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $194.00 ▲(0.03% Upside)

Futu Holdings' strong financial performance and technical indicators are the primary drivers of its high score. The robust earnings call further supports the positive outlook, despite valuation concerns and cash flow challenges.

Positive Factors

Brand Expansion

Enhanced branding efforts, like becoming the official sponsor of the New York Mets, have elevated Futu's brand image in the US and beyond.

Client Growth

FUTU has been growing its client base, AUM and revenues by 20-25% per annum over the last three years, and strong growth is expected to continue and accelerate.

Earnings

Futu reported strong 2Q25 non-GAAP NPAT of HKD2.66bn, which is record-high quarterly profit.

Negative Factors

Customer Acquisition

Management attributed the sequential decline in new paying customer number in 2Q25 mainly to 'Liberation Day' volatility, which negatively impacted customer acquisition.

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. The primary source of income comes from brokerage fees charged to clients for executing trades on its platform. These fees are typically a percentage of the trade value. In addition to brokerage fees, the company earns money through margin financing, where it provides loans to clients to trade on margin, charging interest on these loans. Futu also generates revenue from subscription services and premium features offered to users, as well as through asset management services where it manages funds for clients and charges management fees. Strategic partnerships with financial institutions and technology providers further enhance its offerings and contribute to its revenue growth. Overall, Futu's revenue model is heavily reliant on the volume of trading activity on its platform, making it sensitive to market conditions and investor sentiment.

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, which could impact liquidity.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.59B	9.10B	7.32B	6.74B	3.13B
Gross Profit	11.14B	7.56B	6.33B	5.53B	2.43B
EBITDA	6.80B	5.18B	3.63B	3.31B	1.53B
Net Income	5.44B	4.28B	2.93B	2.81B	1.33B
Balance Sheet
Total Assets	159.70B	97.14B	94.50B	101.54B	71.34B
Cash, Cash Equivalents and Short-Term Investments	14.42B	4.94B	5.03B	5.72B	1.33B
Total Debt	8.55B	5.89B	2.69B	11.09B	11.16B
Total Liabilities	131.70B	72.56B	73.64B	80.55B	63.03B
Stockholders Equity	28.01B	24.57B	20.86B	20.99B	8.31B
Cash Flow
Free Cash Flow	30.83B	-6.42B	3.38B	5.94B	20.41B
Operating Cash Flow	31.00B	-6.34B	3.47B	6.01B	20.46B
Investing Cash Flow	103.93M	-2.44B	93.86M	-963.57M	-244.18M
Financing Cash Flow	70.85M	2.31B	-7.01B	10.55B	8.41B

Futu Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 193.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUTU, the sentiment is Positive. The current price of 193.95 is above the 20-day moving average (MA) of 176.76, above the 50-day MA of 156.79, and above the 200-day MA of 112.61, indicating a bullish trend. The MACD of 10.06 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 74.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FUTU.

Futu Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUTU	80 Outperform	$29.39B	26.86	26.43%	―	66.97%	86.46%
IBKR	78 Outperform	$28.45B	33.51	19.15%	0.78%	12.30%	20.76%
MS	76 Outperform	$237.61B	16.87	14.13%	2.54%	6.36%	45.50%
TIGR	74 Outperform	$2.18B	19.87	18.77%	―	58.88%	305.98%
Sector *	68 Neutral	$17.88B	11.66	10.24%	3.76%	9.66%	1.70%
MKTX	67 Neutral	$6.73B	30.32	16.41%	1.66%	8.30%	-14.39%
XP	67 Neutral	$9.42B	11.10	22.42%	3.65%	-6.77%	2.95%