NasdaqGM:FUTU

Stock Analysis Report

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Market Cap

US$15.8b

Last Updated

2021/08/03 23:49 UTC

Data Sources

Company Financials +

Executive Summary

Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. More Details


Snowflake Analysis

Exceptional growth potential with solid track record.


Similar Companies

Share Price & News

How has Futu Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FUTU is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: FUTU's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

8.9%

FUTU

1.3%

US Capital Markets

0.9%

US Market


1 Year Return

193.7%

FUTU

58.4%

US Capital Markets

34.7%

US Market

Return vs Industry: FUTU exceeded the US Capital Markets industry which returned 57.6% over the past year.

Return vs Market: FUTU exceeded the US Market which returned 34.4% over the past year.


Shareholder returns

FUTUIndustryMarket
7 Day8.9%1.3%0.9%
30 Day-33.7%0.9%0.2%
90 Day-25.2%4.7%4.7%
1 Year193.7%193.7%61.7%58.4%36.8%34.7%
3 Yearn/a76.5%63.8%62.5%52.4%
5 Yearn/a171.4%138.8%123.1%98.4%

Long-Term Price Volatility Vs. Market

How volatile is Futu Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Futu Holdings undervalued compared to its fair value and its price relative to the market?

47.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FUTU ($107.52) is trading above our estimate of fair value ($88.89)

Significantly Below Fair Value: FUTU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FUTU is poor value based on its PE Ratio (48x) compared to the US Capital Markets industry average (12.9x).

PE vs Market: FUTU is poor value based on its PE Ratio (48x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: FUTU is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: FUTU is good value based on its PB Ratio (12.5x) compared to the US Capital Markets industry average (61.4x).


Future Growth

How is Futu Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FUTU's forecast earnings growth (26.7% per year) is above the savings rate (2%).

Earnings vs Market: FUTU's earnings (26.7% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FUTU's revenue (26.6% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: FUTU's revenue (26.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FUTU's Return on Equity is forecast to be high in 3 years time (29.3%)


Past Performance

How has Futu Holdings performed over the past 5 years?

92.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FUTU has high quality earnings.

Growing Profit Margin: FUTU's current net profit margins (49.6%) are higher than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: FUTU's earnings have grown significantly by 92.5% per year over the past 5 years.

Accelerating Growth: FUTU's earnings growth over the past year (748.4%) exceeds its 5-year average (92.5% per year).

Earnings vs Industry: FUTU earnings growth over the past year (748.4%) exceeded the Capital Markets industry 58.3%.


Return on Equity

High ROE: Whilst FUTU's Return on Equity (24.59%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Futu Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FUTU's short term assets (HK$112.0B) exceed its short term liabilities (HK$102.8B).

Long Term Liabilities: FUTU's short term assets (HK$112.0B) exceed its long term liabilities (HK$351.9M).


Debt to Equity History and Analysis

Debt Level: FUTU's debt to equity ratio (253.2%) is considered high.

Reducing Debt: Insufficient data to determine if FUTU's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FUTU's debt is well covered by operating cash flow (85.1%).

Interest Coverage: Insufficient data to determine if FUTU's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Futu Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FUTU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FUTU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FUTU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FUTU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FUTU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Leaf Li (44 yo)

10.58yrs

Tenure

Mr. Hua Li, also known as Leaf, has been Chairman and Chief Executive Officer of Futu Holdings Limited since 2011. Mr. Li is a Founder of Futu Holdings Limited. He serves as Independent Director of Boqii H...


Leadership Team

Experienced Management: FUTU's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: FUTU's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.9%.


Top Shareholders

Company Information

Futu Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Futu Holdings Limited
  • Ticker: FUTU
  • Exchange: NasdaqGM
  • Founded: 2007
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$15.770b
  • Shares outstanding: 146.67m
  • Website: https://www.futuholdings.com

Number of Employees


Location

  • Futu Holdings Limited
  • Bangkok Bank Building
  • 11th Floor
  • Hong Kong
  • Hong Kong

Listings


Biography

Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. The company provides trading, clearing, and settlement services; margin financing and sec...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:49
End of Day Share Price2021/08/03 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.