NasdaqGM:FUTU

Stock Analysis Report

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Executive Summary

Futu Holdings Limited operates digitized brokerage and wealth management platform in Hong Kong, China, the United States, 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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FUTU's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-9.4%

FUTU

3.5%

US Capital Markets

2.1%

US Market


1 Year Return

320.9%

FUTU

11.5%

US Capital Markets

19.8%

US Market

Return vs Industry: FUTU exceeded the US Capital Markets industry which returned 11.4% over the past year.

Return vs Market: FUTU exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

FUTUIndustryMarket
7 Day-9.4%3.5%2.1%
30 Day40.8%13.2%8.1%
90 Day37.6%9.5%6.0%
1 Year320.9%320.9%14.3%11.5%22.5%19.8%
3 Yearn/a30.2%20.2%46.5%36.8%
5 Yearn/a87.2%64.0%96.9%75.3%

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?

51.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FUTU ($45.08) is trading above our estimate of fair value ($20.61)

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 (52.8x) compared to the US Capital Markets industry average (23.1x).

PE vs Market: FUTU is poor value based on its PE Ratio (52.8x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FUTU is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: FUTU is overvalued based on its PB Ratio (8x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is Futu Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

25.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FUTU's forecast earnings growth (25.1% per year) is above the savings rate (2.2%).

Earnings vs Market: FUTU's earnings (25.1% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: FUTU's revenue (30.9% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: FUTU's revenue (30.9% 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 (26.6%)


Next Steps

Past Performance

How has Futu Holdings performed over the past 5 years?

94.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FUTU has high quality earnings.

Growing Profit Margin: FUTU's current net profit margins (36.7%) are higher than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: FUTU's earnings have grown significantly by 94.6% per year over the past 5 years.

Accelerating Growth: FUTU's earnings growth over the past year (529.8%) exceeds its 5-year average (94.6% per year).

Earnings vs Industry: FUTU earnings growth over the past year (529.8%) exceeded the Capital Markets industry 3%.


Return on Equity

High ROE: FUTU's Return on Equity (14.7%) is considered low.


Next Steps

Financial Health

How is Futu Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FUTU's short term assets (HK$75.1B) exceed its short term liabilities (HK$69.7B).

Long Term Liabilities: FUTU's short term assets (HK$75.1B) exceed its long term liabilities (HK$143.3M).


Debt to Equity History and Analysis

Debt Level: FUTU's debt to equity ratio (534.5%) 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 (63.3%).

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


Balance Sheet


Next Steps

Dividend

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

0.081%

Forecast Dividend Yield


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?

3.7yrs

Average management tenure


CEO

Leaf Hua Li (43 yo)

9.83yrs

Tenure

Mr. Leaf Hua Li 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 Holding Limited s...


Leadership Team

NamePositionTenureCompensationOwnership
Leaf Hua Li
Founder9.83yrsno data37.29%
HK$ 2.3b
Arthur Chen
Chief Financial Officer3.17yrsno datano data
Daniel Yuan
Chief of Staff & Head of Investor Relationsno datano datano data
Ching-Yee Poon
Head of Compliance4.17yrsno datano data
Nineway Zhang
Head of Financial Information Sector & Director6.08yrsno data0%
HK$ 0
Robin Li Xu
Senior Vice President1.17yrsno datano data

3.7yrs

Average Tenure

43yo

Average Age

Experienced Management: FUTU's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leaf Hua Li
Founder9.83yrsno data37.29%
HK$ 2.3b
Nineway Zhang
Head of Financial Information Sector & Director6.08yrsno data0%
HK$ 0
Chi Zhang
Director1.25yrsno datano data
Shan Lu
Director6.08yrsno datano data
Pui Tam
Independent Director1.67yrsno datano data
Vic Li
Independent Director1.67yrsno datano data

3.9yrs

Average Tenure

45yo

Average Age

Experienced Board: FUTU's board of directors are considered experienced (3.9 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 21.9%.


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: 2011
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$6.101b
  • Shares outstanding: 135.33m
  • Website: https://www.futuholdings.com

Number of Employees


Location

  • Futu Holdings Limited
  • Unit C1-2 13F
  • United Centre No. 95
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FUTUNasdaqGM (Nasdaq Global Market)YesSPON ADS CL AUSUSDMar 2019
0FUTLSE (London Stock Exchange)YesSPON ADS CL AGBUSDMar 2019

Biography

Futu Holdings Limited operates digitized brokerage and wealth management platform in Hong Kong, China, the United States, and internationally. The company’s platform offers investing services, including tr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:58
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.