NasdaqGM:QFIN

Stock Analysis Report

Executive Summary

360 Finance, Inc. operates a digital consumer finance platform under the 360 Jietiao brand in the People’s Republic of China.


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has 360 Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: QFIN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.9%

QFIN

22.1%

US Consumer Finance

9.4%

US Market


1 Year Return

-56.3%

QFIN

-32.3%

US Consumer Finance

-6.8%

US Market

Return vs Industry: QFIN underperformed the US Consumer Finance industry which returned -32.3% over the past year.

Return vs Market: QFIN underperformed the US Market which returned -6.8% over the past year.


Shareholder returns

QFINIndustryMarket
7 Day-3.9%22.1%9.4%
30 Day-5.0%-20.2%-3.9%
90 Day-28.4%-36.7%-16.5%
1 Year-56.3%-56.3%-31.0%-32.3%-4.8%-6.8%
3 Yearn/a-5.7%-10.4%23.4%15.2%
5 Yearn/a-10.8%-17.4%41.3%25.7%

Price Volatility Vs. Market

How volatile is 360 Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 360 Finance undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QFIN ($7.45) is trading below our estimate of fair value ($26.8)

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


Price To Earnings Ratio

PE vs Industry: QFIN is good value based on its PE Ratio (3x) compared to the Consumer Finance industry average (5x).

PE vs Market: QFIN is good value based on its PE Ratio (3x) compared to the US market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: QFIN is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: QFIN is overvalued based on its PB Ratio (1.1x) compared to the US Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is 360 Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QFIN's forecast earnings growth (9.8% per year) is above the savings rate (1.7%).

Earnings vs Market: QFIN's earnings (9.8% per year) are forecast to grow slower than the US market (11.4% per year).

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

Revenue vs Market: QFIN's revenue (5.3% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: QFIN's revenue (5.3% 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 (24.4%)


Next Steps

Past Performance

How has 360 Finance performed over the past 5 years?

107.3%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: QFIN has high quality earnings.

Growing Profit Margin: QFIN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: QFIN has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: QFIN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: QFIN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Finance industry (8.6%).


Return on Equity

High ROE: QFIN's Return on Equity (34.7%) is considered high.


Next Steps

Financial Health

How is 360 Finance's financial position?


Financial Position Analysis

Short Term Liabilities: QFIN's short term assets (CN¥19.5B) exceed its short term liabilities (CN¥9.7B).

Long Term Liabilities: QFIN's short term assets (CN¥19.5B) exceed its long term liabilities (CN¥3.5B).


Debt to Equity History and Analysis

Debt Level: QFIN's debt to equity ratio (2.8%) is considered satisfactory.

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

Debt Coverage: QFIN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: QFIN's interest payments on its debt are well covered by EBIT (69.4x coverage).


Balance Sheet


Next Steps

Dividend

What is 360 Finance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if QFIN'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 QFIN'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?

2.0yrs

Average management tenure


CEO

Haisheng Wu (36yo)

0.67

Tenure

Mr. Haisheng Wu has been President of 360 Finance, Inc. since July 25, 2016 and has been its Chief Executive Officer and Director since August 23, 2019. Mr. Wu worked as a product director at 360 Group sta ...


Leadership Team

NamePositionTenureCompensationOwnership
Haisheng Wu
President0.67yrno datano data
Jiang Wu
CFO & Director0.083yrno datano data
George Shao
Head of Investor Relationsno datano datano data
Yan Zheng
Vice President3.17yrsno datano data
Christian Arnell
Investor Relations Officerno datano datano data
Matthew Li
Investor Relations Officerno datano datano data

2.0yrs

Average Tenure

36yo

Average Age

Experienced Management: QFIN's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Haisheng Wu
President0.67yrno datano data
Jiang Wu
CFO & Director0.083yrno datano data
Andrew Y. Yan
Independent Director0.75yrno datano data
Hongyi Zhou
Chairman of the Board1.58yrsno data13.7% CN¥154.5m
Wei Liu
Vice Chairman0.083yrno datano data
Gang Xiao
Independent Director1.58yrsno datano data
Yongjin Fu
Independent Director1.58yrsno datano data
Xiaohuan Chen Eric
Director0.42yrno datano data

0.7yrs

Average Tenure

43yo

Average Age

Experienced Board: QFIN's board of directors are not considered experienced ( 0.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 42.5%.


Top Shareholders

Company Information

360 Finance, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 360 Finance, Inc.
  • Ticker: QFIN
  • Exchange: NasdaqGM
  • Founded: 2016
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$1.128b
  • Shares outstanding: 151.35m
  • Website: https://www.360jinrong.net

Number of Employees


Location

  • 360 Finance, Inc.
  • Building B
  • China Diamond Exchange Center
  • Shanghai
  • Shanghai Province
  • 200122
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QFINNasdaqGM (Nasdaq Global Market)YesADSUSUSDDec 2018

Biography

360 Finance, Inc. operates a digital consumer finance platform under the 360 Jietiao brand in the People’s Republic of China. The company matches borrowers with funding sources; and offers incremental credit assessment, collection, and other services. 360 Finance, Inc. was founded in 2016 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:54
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
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.