Qifu Technology (QFIN) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: 7.3%
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 2.4
• Beta (1Y): 1.29
• Revenue Growth: 13.96%
• EPS Growth: 39.32%
• Country: US
• Employees: 3,527
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.55
• Shares Outstanding: 130,185,120
• 10 Day Avg. Volume: 1,479,380
• 30 Day Avg. Volume: 1,677,942
• 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: 3.84
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 0.57
• Enterprise Value/Ebitda: 0.81
• 1Y Price Target: $35.50
• Price Target Upside: 111.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.48
• Revenue Forecast (FY): $2.54B

• Rating: 72 Outperform
• Price Target: $20.00 ▲(19.33% Upside)

Qifu Technology's overall stock score reflects strong financial performance and attractive valuation, which are the most significant factors. However, the bearish technical indicators and mixed earnings call sentiment, due to regulatory challenges and increased delinquency rates, temper the overall outlook. The stock's undervaluation and high dividend yield provide a cushion against these risks.

Positive Factors

Revenue Growth

Qifu Technology's revenue growth indicates robust business expansion and increased market penetration, supporting long-term financial health.

Technology Solutions Growth

Strong growth in technology solutions highlights Qifu's innovation and adaptability, enhancing its competitive edge in the fintech industry.

Cash Flow Strength

Strong cash flow generation supports Qifu's ability to reinvest in growth and maintain financial flexibility, crucial for long-term sustainability.

Negative Factors

Regulatory Challenges

Regulatory challenges may constrain Qifu's operations and growth, requiring strategic adjustments to comply with new industry standards.

Increased Delinquency Rates

Rising delinquency rates indicate increased credit risk, potentially affecting profitability and necessitating enhanced risk management strategies.

Decline in Platform Service Revenue

A decline in platform service revenue suggests challenges in maintaining service demand, impacting overall revenue diversification and growth.

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 exhibits strong financial health with robust revenue and profit growth, efficient cost management, and strong cash flow generation. The balance sheet is solid with low leverage and high return on equity. Continued focus on asset utilization and maintaining growth momentum will be key to sustaining its financial strength.

Income Statement

Qifu Technology demonstrates strong financial performance with a consistent increase in revenue and profitability. The TTM data shows a gross profit margin of 72.55% and a net profit margin of 42.07%, indicating efficient cost management and strong profitability. The revenue growth rate of 4.85% in the TTM period reflects positive growth momentum. EBIT and EBITDA margins are robust at 51.92% and 52.11% respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.26, indicating conservative leverage. The return on equity is strong at 30.82%, reflecting effective use of equity to generate profits. The equity ratio stands at 39.47%, suggesting a solid equity base relative to total assets, though there is room for improvement in asset utilization.

Cash Flow

Qifu Technology's cash flow position is strong, with a free cash flow growth rate of 121.2% in the TTM period, indicating significant cash generation capabilities. The operating cash flow to net income ratio is 7.41, and the free cash flow to net income ratio is 0.99, both highlighting efficient cash conversion and strong liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.08B	17.17B	16.29B	16.55B	16.64B	13.56B
Gross Profit	12.92B	10.60B	10.45B	11.70B	12.84B	10.36B
EBITDA	9.10B	8.08B	7.98B	8.92B	9.93B	8.62B
Net Income	6.89B	6.26B	4.29B	4.02B	5.78B	3.50B
Balance Sheet
Total Assets	61.45B	48.13B	45.82B	40.34B	33.50B	24.39B
Cash, Cash Equivalents and Short-Term Investments	10.92B	7.85B	4.19B	7.22B	6.12B	4.42B
Total Debt	6.33B	1.65B	930.20M	220.22M	423.36M	215.33M
Total Liabilities	37.15B	23.89B	23.81B	21.41B	18.29B	14.91B
Stockholders Equity	24.26B	24.19B	21.94B	18.85B	15.20B	9.48B
Cash Flow
Free Cash Flow	10.83B	9.19B	7.03B	5.90B	5.76B	5.31B
Operating Cash Flow	10.98B	9.34B	7.12B	5.92B	5.79B	5.33B
Investing Cash Flow	-13.02B	-7.99B	-11.15B	-7.36B	-6.06B	892.77M
Financing Cash Flow	5.12B	-2.11B	1.07B	3.20B	2.26B	-3.28B

Qifu Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.76
• 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 16.76 is below the 20-day moving average (MA) of 18.61, below the 50-day MA of 19.66, and below the 200-day MA of 31.16, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 26.19 is Positive, neither overbought nor oversold. The STOCH value of 4.76 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
YRD	73 Outperform	$345.63M	2.00	12.53%	10.37%	10.48%	-30.67%
QFIN	72 Outperform	$1.93B	2.45	28.65%	7.30%	13.96%	39.32%
FINV	71 Outperform	$1.31B	3.51	17.73%	5.20%	9.32%	29.40%
LX	69 Neutral	$504.79M	2.11	16.09%	8.86%	-0.60%	135.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LU	52 Neutral	$2.34B	-3.44	―	―	―	―