Qifu Technology (QFIN) AI Stock Analysis

• Market Cap: $4.31B
• Dividend Yield: 3.81%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 1.22
• Revenue Growth: 3.88%
• EPS Growth: 56.29%
• Country: US
• Employees: 3,527
• Sector: Financial
• Sector Strength: 67
• Industry: Financial - Credit Services
• EPS (TTM): 1.76
• Shares Outstanding: 148,270,500
• 10 Day Avg. Volume: 2,676,433
• 30 Day Avg. Volume: 1,851,292
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.45
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: $58.73
• Price Target Upside: 74.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: ―

Qifu Technology's strong financial performance, underlined by high profitability and low leverage, forms the foundation of its stock score. Positive earnings call outcomes and a favorable valuation further enhance its attractiveness. However, technical analysis suggests caution due to bearish momentum indicators. The combination of these factors results in a high overall score, indicating a promising outlook for the stock.

Positive Factors

Earnings Per Share

The concurrent repurchase is expected to facilitate initial hedges and will reduce the share counts by approximately 3.8%, being nearly 4% accretive to EPS.

Revenue Growth

QFIN's revenue rose 4.7% quarter-over-quarter and 12.9% year-over-year, surpassing consensus expectations.

Share Buybacks

QFIN spent substantial amounts on share buybacks, demonstrating confidence in its financial health and future growth.

Negative Factors

Funding Costs

Funding cost fell 30bp QoQ on more ABS issuance, and is expected to decline modestly in coming quarters.

Regulatory Environment

The loan facilitation new regulations are viewed as beneficial for long-term industry growth and favorable to leading players like QFIN.

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 makes money primarily through the interest and fees charged on the loans it facilitates. Its revenue streams include origination fees from borrowers, service fees from institutional funding partners, and interest income from the loans held on its balance sheet. The company partners with multiple financial institutions to secure funding, enabling it to serve a large customer base while managing its own risk exposure. Additionally, Qifu Technology employs sophisticated data analytics to refine its credit risk models, allowing it to better assess borrower risk and optimize its loan offerings. This data-driven approach helps the company maintain a competitive edge and attract a diverse range of customers seeking accessible credit solutions.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.17B	16.29B	16.55B	16.64B	13.56B
Gross Profit	10.60B	10.45B	11.70B	12.84B	10.36B
EBITDA	8.08B	0.00	0.00	0.00	0.00
Net Income	6.26B	4.29B	4.02B	5.78B	3.50B
Balance Sheet
Total Assets	48.13B	45.82B	40.34B	33.50B	24.39B
Cash, Cash Equivalents and Short-Term Investments	7.85B	4.19B	7.22B	6.12B	4.42B
Total Debt	1.40B	827.73M	150.00M	397.58M	186.80M
Total Liabilities	23.89B	23.81B	21.41B	18.29B	14.91B
Stockholders Equity	24.19B	21.94B	18.85B	15.20B	9.48B
Cash Flow
Free Cash Flow	9.19B	7.03B	5.90B	5.76B	5.31B
Operating Cash Flow	9.34B	7.12B	5.92B	5.79B	5.33B
Investing Cash Flow	-7.99B	-11.15B	-7.36B	-6.06B	892.77M
Financing Cash Flow	-2.11B	1.07B	3.20B	2.26B	-3.28B

Qifu Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 33.6 is below the 20-day moving average (MA) of 37.65, below the 50-day MA of 40.80, and below the 200-day MA of 39.17, indicating a bearish trend. The MACD of -2.50 indicates Positive momentum. The RSI at 22.88 is Positive, neither overbought nor oversold. The STOCH value of 21.63 is Neutral, 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	80 Outperform	$4.31B	5.13	30.67%	3.81%	3.88%	56.29%
FINV	79 Outperform	$2.15B	6.18	17.91%	3.10%	5.13%	25.93%
OMF	78 Outperform	$6.71B	10.20	20.47%	7.48%	9.41%	13.98%
LX	73 Outperform	$1.09B	6.10	14.86%	2.83%	3.11%	95.40%
Sector *	67 Neutral	¥764.29B	11.15	7.42%	3.20%	7.66%	14.08%
UPST	60 Neutral	$6.46B	―	-0.96%	―	60.62%	96.91%
LU	52 Neutral	$2.41B	―	-3.79%	4.57%	-38.81%	-425.73%