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

Fundamentals

Moderate growth potential with poor 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

QFIN

-0.5%

US Consumer Finance

0.2%

US Market


1 Year Return

n/a

QFIN

10.0%

US Consumer Finance

12.2%

US Market

Return vs Industry: Insufficient data to determine how QFIN performed against the US Consumer Finance industry.

Return vs Market: Insufficient data to determine how QFIN performed against the US Market.


Shareholder returns

QFINIndustryMarket
7 Day-4.3%-0.5%0.2%
30 Day-4.6%4.2%3.5%
90 Day-18.4%0.9%6.3%
1 Yearn/a11.9%10.0%14.7%12.2%
3 Yearn/a45.9%38.9%47.8%38.3%
5 Yearn/a37.9%27.8%62.1%44.1%

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?

1.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: QFIN ($8.55) is trading above our estimate of fair value ($3.33)

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


Price To Earnings Ratio

PE vs Industry: QFIN is unprofitable, so we can't compare its PE Ratio to the Consumer Finance industry average.

PE vs Market: QFIN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate QFIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QFIN is overvalued based on its PB Ratio (1.5x) compared to the US Consumer Finance industry average (1.3x).


Next Steps

Future Growth

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

32.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QFIN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: QFIN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: QFIN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: QFIN's revenue (23.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: QFIN's revenue (23.4% per year) is forecast to grow faster 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 (32.4%)


Next Steps

Past Performance

How has 360 Finance performed over the past 5 years?

-382.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: QFIN has high quality earnings.

Growing Profit Margin: QFIN's current net profit margins (-8.3%) are lower than last year (-6.7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if QFIN's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare QFIN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QFIN is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (17.1%).


Return on Equity

High ROE: QFIN has a negative Return on Equity (42.42%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 360 Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: QFIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: QFIN's debt is covered by short term assets (assets are 10.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: QFIN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if QFIN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Financial Institutions Analysis

Asset Level: QFIN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if QFIN has a sufficient allowance for bad loans.

Low Risk Liabilities: QFIN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if QFIN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: QFIN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if QFIN has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry

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

What is the CEO of 360 Finance's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average board tenure


CEO

Haisheng Wu (36yo)

0.3yrs

Tenure

0

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 ...


Board Age and Tenure

1.2yrs

Average Tenure

43yo

Average Age

Experienced Board: QFIN's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 24.7%.


Management Team

  • Christian Arnell

    Investor Relations Officer

    • Tenure: 0yrs
  • Haisheng Wu (36yo)

    President

    • Tenure: 0.3yrs
  • Jiang Wu (40yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
  • George Shao

    Head of Investor Relations

    • Tenure: 0yrs
  • Matthew Li

    Investor Relations Officer

    • Tenure: 0yrs

Board Members

  • Andy Yan (62yo)

    Independent Director

    • Tenure: 0.3yrs
  • Hongyi Zhou (48yo)

    Chairman of the Board

    • Tenure: 1.2yrs
  • Wei Liu (41yo)

    Director

    • Tenure: 1.2yrs
  • Fan Zhang (38yo)

    Director

    • Tenure: 1.2yrs
  • Gang Xiao (43yo)

    Independent Director

    • Tenure: 1.2yrs
  • Yongjin Fu (48yo)

    Independent Director

    • Tenure: 1.2yrs
  • Haisheng Wu (36yo)

    President

    • Tenure: 0.3yrs

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$1.230b
  • Shares outstanding: 143.83m
  • 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 cred ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 00:56
End of Day Share Price2019/11/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.