Qifu Technology Stock Fair Value Calculation – QIFU TECHNOLOGY Reports Disappointing Earnings and Revenue Misses
May 20, 2023
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QIFU ($NASDAQ:QFIN) Technology, a Chinese technology and semiconductor company, recently reported disappointing earnings and revenue misses. According to the company’s 360 DigiTech GAAP Earnings Per Share (EPS) of $0.41, the expected amount fell short by $0.48.
Additionally, its revenue of $524.1 million was lower than the anticipated amount by $39.46 million. QIFU Technology is committed to providing cutting-edge semiconductor products and solutions to their customers. The company specializes in the research and development of AI-powered products, providing customers with reliable and secure solutions. Furthermore, QIFU Technology is focused on driving innovation in the semiconductor industry, leveraging the latest technologies to create superior products. Despite the negative results, QIFU Technology remains optimistic that its investments in AI and other cutting-edge technologies will help the company realize its potential growth in the future. Additionally, the company is planning to develop new products and services to stay competitive in the industry.
Earnings
QIFU TECHNOLOGY released its latest earnings report for Fiscal Year 2022, ending December 31 2022. The company reported a total revenue of 3.26B CNY, and a net income of 0.87B CNY. This marks a 14.2% decrease in total revenue and a 34.1% decrease in net income compared to the same quarter of the previous year. However, this was not enough to offset the drops in both total revenue and net income this quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Qifu Technology. More…
| Total Revenues | Net Income | Net Margin |
| 13.95k | 4.02k | 28.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Qifu Technology. More…
| Operations | Investing | Financing |
| 5.92k | -7.36k | 3.2k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Qifu Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 40.34k | 21.41k | 118.2 |
Key Ratios Snapshot
Some of the financial key ratios for Qifu Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.1% | – | – |
| FCF Margin | ROE | ROA |
| 42.5% | 16.1% | 7.3% |
Market Price
This caused their stock to drop by 6.4% from its previous closing price of $16.1, opening at $15.8 and closing at $15.0. Analysts have expressed their dissatisfaction with the results, citing higher-than-expected expenses and lower-than-expected revenue. The company is expected to take further action to improve their financial performance over the next quarter. Live Quote…
Analysis – Qifu Technology Stock Fair Value Calculation
GoodWhale recently conducted an analysis of QIFU TECHNOLOGY‘s financials and determined that its fair value is around $17.5. Our proprietary Valuation Line was used to come to this conclusion. Currently, QIFU TECHNOLOGY’s stock is being traded at $15.0, representing a 14.2% undervaluation of the true worth of the company. This presents an opportunity for investors to buy the stock at a discount and realize capital gains. More…
Peers
The competition between 360 DigiTech Inc and its competitors is fierce. All four companies are vying for a share of the Chinese market for online lending platforms. 360 DigiTech Inc is the clear leader in terms of market share, but the other three companies are not far behind. LexinFintech Holdings Ltd, FinVolution Group, and Qudian Inc all have strong brands and are well-funded. They are all aggressive marketers and are constantly innovating to try to gain an edge over the competition.
– LexinFintech Holdings Ltd ($NASDAQ:LX)
LexinFintech Holdings Ltd is a Chinese fintech company that provides online financial services through its subsidiary, Fenqile. The company has a market cap of 298.71M as of 2022 and a Return on Equity of 10.43%. LexinFintech Holdings Ltd is a leading provider of online consumer finance in China. The company offers a suite of products and services including unsecured personal loans, credit products, and investment products.
– FinVolution Group ($NYSE:FINV)
FinVolution Group is a leading provider of online financial services in China. The company offers a wide range of products and services, including personal loans, micro-loans, credit management, and wealth management products. The company’s market cap as of 2022 is 1.41B, and its ROE is 14.08%. Founded in 2006, FinVolution Group has a strong track record of growth and profitability. The company is well-positioned to continue its growth in the Chinese online financial services market.
– Qudian Inc ($NYSE:QD)
Qudian Inc is a provider of small consumer credit products in China. The company offers cash loans, installment loans, and other credit products to borrowers through an online platform. It also provides value-added services, such as loan renewal and late payment insurance.
As of 2022, Qudian Inc had a market cap of 219.98M and a ROE of 2.23%. The company offers small consumer credit products in China through an online platform. It also provides value-added services, such as loan renewal and late payment insurance.
Summary
QIFU Technology is a Chinese technology company with a focus on artificial intelligence and cloud computing. Analysts are generally positive on the company’s prospects, pointing to its growing customer base, expanding product offering, and its commitment to research and development. Investors should watch closely for any new developments that could impact the company’s future such as advancements in its AI and cloud computing products or increased competition in the market.
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