company background image
QFIN

360 DigiTech NasdaqGS:QFIN Stock Report

Last Price

US$17.67

Market Cap

US$2.7b

7D

14.1%

1Y

-57.6%

Updated

27 Jun, 2022

Data

Company Financials +
QFIN fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends4/6

QFIN Stock Overview

360 DigiTech, Inc., through its subsidiaries, operates financial technology platform under the 360 Jietiao brand in the People’s Republic of China.

360 DigiTech Competitors

Price History & Performance

Summary of all time highs, changes and price drops for 360 DigiTech
Historical stock prices
Current Share PriceUS$17.67
52 Week HighUS$44.11
52 Week LowUS$11.15
Beta0.61
1 Month Change21.03%
3 Month Change2.44%
1 Year Change-57.65%
3 Year Change53.39%
5 Year Changen/a
Change since IPO7.09%

Recent News & Updates

Jun 23
If EPS Growth Is Important To You, 360 DigiTech (NASDAQ:QFIN) Presents An Opportunity

If EPS Growth Is Important To You, 360 DigiTech (NASDAQ:QFIN) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jun 21

360 DigiTech: Undervalued Artificial Technology Stock With Certain Risks

360 DigiTech, Inc. is a credit-tech platform that financial institutions use to provide better and targeted products and services to a broader consumer base. Management believes that QFIN could deliver double-digit origination volume amidst the current macro environment. It is quite interesting that clients don’t need a lot of human interaction. Over 83% of collections are executed by robots. The company was incorporated in the Cayman Islands, where shareholders are not that protected.

Shareholder Returns

QFINUS Consumer FinanceUS Market
7D14.1%2.9%6.6%
1Y-57.6%-29.7%-18.4%

Return vs Industry: QFIN underperformed the US Consumer Finance industry which returned -29.7% over the past year.

Return vs Market: QFIN underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is QFIN's price volatile compared to industry and market?
QFIN volatility
QFIN Average Weekly Movement10.5%
Consumer Finance Industry Average Movement9.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: QFIN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: QFIN's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20162,129Haisheng Wuhttps://www.360shuke.com

360 DigiTech, Inc., through its subsidiaries, operates financial technology platform under the 360 Jietiao brand in the People’s Republic of China. The company provides credit-driven services that matches borrowers with financial institution partners enabling financial institution partners to conduct customer acquisition, initial credit screening, advanced risk assessment, collection, 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 also offers e-commerce loans, enterprise loans, and invoice loans to SME owners.

360 DigiTech Fundamentals Summary

How do 360 DigiTech's earnings and revenue compare to its market cap?
QFIN fundamental statistics
Market CapCN¥18.36b
Earnings (TTM)CN¥5.61b
Revenue (TTM)CN¥17.36b

3.3x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
QFIN income statement (TTM)
RevenueCN¥17.36b
Cost of RevenueCN¥4.33b
Gross ProfitCN¥13.02b
Other ExpensesCN¥7.41b
EarningsCN¥5.61b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)36.16
Gross Margin75.04%
Net Profit Margin32.34%
Debt/Equity Ratio3.6%

How did QFIN perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is QFIN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QFIN?

Other financial metrics that can be useful for relative valuation.

QFIN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA1.3x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does QFIN's PE Ratio compare to its peers?

QFIN PE Ratio vs Peers
The above table shows the PE ratio for QFIN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.3x
NNI Nelnet
7.1xn/aUS$3.2b
NAVI Navient
3.5x-21.9%US$2.1b
SLM SLM
6.8x-1.3%US$4.4b
FINV FinVolution Group
3.7x5.9%US$1.4b
QFIN 360 DigiTech
3.2x16.8%US$2.7b

Price-To-Earnings vs Peers: QFIN is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (5.3x).


Price to Earnings Ratio vs Industry

How does QFIN's PE Ratio compare vs other companies in the US Consumer Finance Industry?

Price-To-Earnings vs Industry: QFIN is good value based on its Price-To-Earnings Ratio (3.2x) compared to the US Consumer Finance industry average (5.7x)


Price to Earnings Ratio vs Fair Ratio

What is QFIN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QFIN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.3x
Fair PE Ratio13x

Price-To-Earnings vs Fair Ratio: QFIN is good value based on its Price-To-Earnings Ratio (3.2x) compared to the estimated Fair Price-To-Earnings Ratio (13x).


Share Price vs Fair Value

What is the Fair Price of QFIN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QFIN ($17.24) is trading below our estimate of fair value ($127.67)

Significantly Below Fair Value: QFIN is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: QFIN is good value based on its PEG Ratio (0.2x)


Discover undervalued companies

Future Growth

How is 360 DigiTech forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QFIN's forecast earnings growth (16.8% per year) is above the savings rate (1.9%).

Earnings vs Market: QFIN's earnings (16.8% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: QFIN's earnings are forecast to grow, but not significantly.

Revenue vs Market: QFIN's revenue (12.2% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: QFIN's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QFIN's Return on Equity is forecast to be high in 3 years time (26.6%)


Discover growth companies

Past Performance

How has 360 DigiTech performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


66.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: QFIN has high quality earnings.

Growing Profit Margin: QFIN's current net profit margins (32.3%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: QFIN's earnings have grown significantly by 66.2% per year over the past 5 years.

Accelerating Growth: QFIN's earnings growth over the past year (20.5%) is below its 5-year average (66.2% per year).

Earnings vs Industry: QFIN earnings growth over the past year (20.5%) exceeded the Consumer Finance industry 17.4%.


Return on Equity

High ROE: QFIN's Return on Equity (34.6%) is considered high.


Discover strong past performing companies

Financial Health

How is 360 DigiTech's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: QFIN's short term assets (CN¥29.4B) exceed its short term liabilities (CN¥14.6B).

Long Term Liabilities: QFIN's short term assets (CN¥29.4B) exceed its long term liabilities (CN¥5.0B).


Debt to Equity History and Analysis

Debt Level: QFIN has more cash than its total debt.

Reducing Debt: QFIN's debt to equity ratio has reduced from 145.4% to 3.6% over the past 5 years.

Debt Coverage: QFIN's debt is well covered by operating cash flow (1102.2%).

Interest Coverage: QFIN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Discover healthy companies

Dividend

What is 360 DigiTech current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.95%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: QFIN's dividend (5.08%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: QFIN's dividend (5.08%) is in the top 25% of dividend payers in the US market (4.24%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether QFIN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if QFIN's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (9.4%), QFIN's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.1%), QFIN's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Haisheng Wu (38 yo)

2.83yrs

Tenure

Mr. Haisheng Wu has been the Chief Executive Officer and Director at 360 DigiTech, Inc. (formerly known as 360 Finance, Inc.) since August 23, 2019 and served as its President since July 25, 2016. Mr. Wu w...


Leadership Team

Experienced Management: QFIN's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: QFIN's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

360 DigiTech, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: 360 DigiTech, Inc.
  • Ticker: QFIN
  • Exchange: NasdaqGS
  • Founded: 2016
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Implied Market Cap: US$2.743b
  • Shares outstanding: 155.26m
  • Website: https://www.360shuke.com

Number of Employees


Location

  • 360 DigiTech, Inc.
  • China Diamond Exchange Center, Building
  • No. 555 Pudian Road
  • Shanghai
  • 200122
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.