Qifu Technology (QFIN) AI Stock Analysis

• Market Cap: $2.84B
• Dividend Yield: 6.81%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 3.0
• Beta (1Y): 1.14
• Revenue Growth: 9.90%
• EPS Growth: 68.56%
• Country: US
• Employees: 3,527
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.79
• Shares Outstanding: 148,270,500
• 10 Day Avg. Volume: 2,438,158
• 30 Day Avg. Volume: 1,970,044
• PEG Ratio: 0.12
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 2.43
• P/FCF Ratio: 4.54
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 0.42
• Enterprise Value/Ebitda: 0.58
• 1Y Price Target: $42.46
• Price Target Upside: 99.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $24.00 ▲(12.73% Upside)

Qifu Technology's overall stock score is driven by its strong financial performance and attractive valuation, indicating a solid foundation and potential undervaluation. However, technical analysis reveals bearish momentum, and regulatory uncertainties pose risks. The company's strategic advancements in AI and international expansion are positive, but economic headwinds and increased provisions for risk-bearing loans are concerns.

Positive Factors

Revenue Growth

The significant increase in loan facilitation and origination volume indicates strong demand for Qifu Technology's services, suggesting robust revenue growth potential and market expansion.

AI and Risk Management

Advancements in AI and risk management enhance Qifu Technology's competitive edge, improving decision accuracy and efficiency, which can lead to better customer outcomes and reduced risk.

International Expansion

The expansion into the U.K. market demonstrates Qifu Technology's strategic initiative to diversify and grow its international presence, potentially opening new revenue streams and reducing reliance on domestic markets.

Negative Factors

Regulatory Uncertainties

Regulatory uncertainties can lead to operational challenges and necessitate adjustments in business strategies, potentially impacting Qifu Technology's growth and profitability.

Provision for Risk-bearing Loans

Increased provisions for risk-bearing loans suggest higher credit risk exposure, which could strain financial resources and affect profitability if defaults rise.

Impact of New Regulations

New regulations may necessitate changes in Qifu Technology's business model, potentially affecting revenue streams and requiring strategic realignment to maintain competitiveness.

Qifu Technology Business Overview & Revenue Model

Company Description

Qifu Technology, Inc., together with its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. The company provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. It offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. Qifu Technology, Inc. was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Qifu Technology generates revenue through multiple key streams, primarily from interest income on consumer loans and fees associated with its financial services. The company facilitates lending by acting as a platform that matches borrowers with lenders, earning origination fees and service charges. Additionally, Qifu Technology monetizes its data analytics capabilities by providing insights and risk assessment services to financial institutions, thus creating another significant revenue stream. Partnerships with banks and other financial entities enhance its service offerings and contribute to its earnings by expanding its reach in the consumer lending market.

Qifu Technology Financial Statement Overview

Summary

Qifu Technology shows robust financial performance with strong revenue and net profit margin growth, low leverage, and effective cash flow generation. The company has demonstrated excellent operational efficiency and financial stability, positioning it well for future growth.

Income Statement

Qifu Technology exhibits robust financial performance with a consistent increase in revenue from $9.2 billion in 2019 to $17.2 billion in 2024, reflecting strong revenue growth. The Gross Profit Margin has remained solid, consistently above 60% over the years. The 2024 Net Profit Margin improved significantly to 36.5% from 26.3% in 2023, indicating enhanced profitability. EBIT and EBITDA margins also show a positive trend, reinforcing operational efficiency. Overall, the company shows strong growth and profitability in its income statement.

Balance Sheet

The company's balance sheet is strong, featuring a Debt-to-Equity Ratio of 0.07 in 2024, highlighting low leverage and financial stability. The Return on Equity (ROE) climbed to 25.9% in 2024, indicating effective use of equity to generate profit. The Equity Ratio stands at 50.3%, showcasing a healthy capital structure with substantial shareholder equity relative to total assets. The overall balance sheet strength is marked by low debt levels and high equity, mitigating financial risk.

Cash Flow

Qifu Technology demonstrates strong cash flow performance with steady Free Cash Flow growth, reaching $9.3 billion in 2024. The Operating Cash Flow to Net Income Ratio is 1.49 in 2024, indicating strong cash generation from operations. The Free Cash Flow to Net Income Ratio is also favorable at 1.49, underscoring the company's ability to convert net income into cash. Despite fluctuations in investing and financing cash flows, the company's capacity to generate cash remains robust, supporting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.28B	17.17B	16.29B	16.55B	16.64B	13.56B
Gross Profit	12.07B	10.60B	10.45B	11.70B	12.84B	10.36B
EBITDA	8.60B	8.08B	7.98B	8.92B	9.93B	8.62B
Net Income	6.90B	6.26B	4.29B	4.02B	5.78B	3.50B
Balance Sheet
Total Assets	55.63B	48.13B	45.82B	40.34B	33.50B	24.39B
Cash, Cash Equivalents and Short-Term Investments	10.62B	7.85B	4.19B	7.22B	6.12B	4.42B
Total Debt	6.13B	1.40B	827.73M	220.22M	436.53M	230.30M
Total Liabilities	32.51B	23.89B	23.81B	21.41B	18.29B	14.91B
Stockholders Equity	23.06B	24.19B	21.94B	18.85B	15.20B	9.48B
Cash Flow
Free Cash Flow	10.19B	9.19B	7.03B	5.90B	5.76B	5.31B
Operating Cash Flow	10.19B	9.34B	7.12B	5.92B	5.79B	5.33B
Investing Cash Flow	-8.10B	-7.99B	-11.15B	-7.36B	-6.06B	892.77M
Financing Cash Flow	1.56B	-2.11B	1.07B	3.20B	2.26B	-3.28B

Qifu Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QFIN, the sentiment is Negative. The current price of 21.29 is below the 20-day moving average (MA) of 26.05, below the 50-day MA of 28.07, and below the 200-day MA of 36.56, indicating a bearish trend. The MACD of -1.82 indicates Positive momentum. The RSI at 25.11 is Positive, neither overbought nor oversold. The STOCH value of 11.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QFIN.

Qifu Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QFIN	―	$2.84B	3.00	31.10%	6.81%	9.90%	68.56%
FINV	―	$1.43B	4.01	18.75%	4.92%	8.41%	34.76%
YRD	―	$462.27M	2.59	13.64%	8.22%	12.69%	-35.36%
LX	―	$620.89M	3.13	14.86%	7.90%	3.11%	95.40%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	―	$752.98M	10.77	4.57%	―	-39.25%	―
LU	―	$2.43B	―	―	―	―	―

Qifu Technology Corporate Events

Qifu Technology’s Balanced Earnings Call Highlights Growth and Challenges

The recent earnings call from Qifu Technology, Inc. presented a balanced sentiment, highlighting significant achievements alongside challenges. The company reported notable growth in loan facilitation volume, non-GAAP net income, and ABS issuance. However, it also acknowledged the challenges posed by regulatory uncertainties and increased provisions for risk-bearing loans. Strategic advancements in AI and international expansion were also key points of discussion, despite facing economic headwinds and regulatory impacts.

Qifu Technology Reports Strong Q2 2025 Results

Qifu Technology, Inc., a prominent AI-driven Credit-Tech platform in China, specializes in providing technology services that facilitate the loan lifecycle for financial institutions, consumers, and SMEs. The company leverages advanced machine learning and data analytics to enhance credit accessibility and personalization.