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QFIN Stock Skyrockets 129% in a Year: Is It Still Worth Buying?
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Qifu Technology, Inc. (QFIN - Free Report) stock has shown exceptional growth over the past year. The stock has skyrocketed 129%, outperforming the 36.8% rally of the industry and 11.4% growth of the Zacks S&P 500 composite.
QFIN’s performance is significantly higher than that of its competitors, N-able (NABL - Free Report) and NV5 Global (NVEE - Free Report) . NABL and NVEE have declined 36.1% and 17.9% in the same period, respectively.
One-Year Price Performance
Image Source: Zacks Investment Research
Qifu Technology has outperformed N-able, NV5 Global and the industry in the past six months as well. QFIN has gained 52.4%, surpassing its industry’s 7.3% rise. N-able and NV5 Global have decreased 22.3% and 11.3%, respectively.
As of the last trading session, the QFIN stock closed at $46.05, down 6.3% from the 52-week high of $48.94. Qifu Technology is trading above its 50-day moving average, indicating a bullish sentiment among investors.
Investors might be attracted by the performance that the QFIN stock has shown in the past year, urging them to ride the rally. Let us analyze it to find out whether now is the right time to invest.
In March, China announced a special action plan targeted at improving consumption. The focus is to increase consumption capacity by boosting income and lowering burdens. Qifu Technology’s strong fourth-quarter 2024 results portray enhanced financial and operating metrics.
Robust risk management practices, evidenced by an improvement in the 30-day collection rate and a 21-basis-point decline in D1 delinquency, when coupled with its financial strength, provide a solid foundation. Nearly 81% of QFIN’s borrowers hail from tier 3 and 4 cities. A loan portfolio concentrated in credit cards, mortgage and auto loans positions the company well with the government’s focus on boosting consumer lending via banking partnerships.
The company has integrated AI across its operations, mainly in user acquisition and advertisements. This strategy is yielding sufficient efficiency gains, wherein user outreach has improved 25.1% and the average cost per credit line user has declined 10%.
QFIN has witnessed 9% growth in return on investment from automated ad placements, indicating that the AI-driven strategies will be key in driving user and volume growth in response to the aiding macro-environment.
QFIN’s Robust Liquidity & Strong Profitability Position
Qifu Technology’s strong cash reserves of $1.4 billion at the end of the fourth quarter of 2024, with $188 million as current debt, demonstrate its healthy financial position. This robust cash position strengthens the company’s liquidity to fund growth initiatives.
QFIN’s current ratio of 2.45 exceeds the industry average of 1.76, implying its ability to effectively meet short-term obligations. The metric has jumped 22.5% from the year-ago quarter, reassuring investors about the company’s motivation to improve its liquidity position in the long run.
Image Source: Zacks Investment Research
The company's impressive return on equity of 27.3%, far surpassing the industry’s average of 5.5%, reflects its exceptional profitability and efficient use of shareholder capital. The company’s solid liquidity, coupled with high profitability, positions Qifu Technology for sustained growth, providing investors with confidence in its financial stability and operational effectiveness. The company's strong financial metrics elevate its competitiveness in the digital lending sector, setting it up for long-term success.
Image Source: Zacks Investment Research
Qifu Technology Stock Looks Cheap
The QFIN stock looks cheap and appealing to investors. It is priced at 6.4 times forward 12-month earnings per share, which is significantly lower than the industry’s average of 24.2 times. When looking at the trailing 12-month EV-to-EBITDA ratio, Qifu Technology is trading at 5.3 times, far below the industry’s average of 30 times.
QFIN’s Optimistic Top & Bottom-Line Prospects
The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $2.4 billion, indicating 2.2% growth from the year-ago reported level. For 2026, the top line is pegged at $2.7 billion, suggesting a 12.4% year-over-year increase.
The consensus estimate for 2025 earnings is pegged at $6.93 per share, indicating a 22.4% increase from the prior year's actual. For 2026, the bottom line is pinned at $7.77 per share, hinting at a 12% year-over-year rise.
Verdict: Buy Qifu Technology Now
QFIN’s healthy financial status positions it well to capitalize on the consumption-driven policies initiated by China. The company’s AI-driven strategy is crucial for achieving significant growth in this supportive macroeconomic environment. A strong liquidity position, coupled with healthy profitability, is a green flag for investors.
We believe that a fundamentally strong stock that possesses a discounted valuation needs to find its place in investors’ long-term portfolios. Hence, we urge them to hurry up and buy Qifu Technology right now.
Image: Bigstock
QFIN Stock Skyrockets 129% in a Year: Is It Still Worth Buying?
Qifu Technology, Inc. (QFIN - Free Report) stock has shown exceptional growth over the past year. The stock has skyrocketed 129%, outperforming the 36.8% rally of the industry and 11.4% growth of the Zacks S&P 500 composite.
QFIN’s performance is significantly higher than that of its competitors, N-able (NABL - Free Report) and NV5 Global (NVEE - Free Report) . NABL and NVEE have declined 36.1% and 17.9% in the same period, respectively.
One-Year Price Performance
Qifu Technology has outperformed N-able, NV5 Global and the industry in the past six months as well. QFIN has gained 52.4%, surpassing its industry’s 7.3% rise. N-able and NV5 Global have decreased 22.3% and 11.3%, respectively.
As of the last trading session, the QFIN stock closed at $46.05, down 6.3% from the 52-week high of $48.94. Qifu Technology is trading above its 50-day moving average, indicating a bullish sentiment among investors.
Investors might be attracted by the performance that the QFIN stock has shown in the past year, urging them to ride the rally. Let us analyze it to find out whether now is the right time to invest.
China’s Consumption-Driven Policies: QFIN’s Growth Catalyst
In March, China announced a special action plan targeted at improving consumption. The focus is to increase consumption capacity by boosting income and lowering burdens. Qifu Technology’s strong fourth-quarter 2024 results portray enhanced financial and operating metrics.
Robust risk management practices, evidenced by an improvement in the 30-day collection rate and a 21-basis-point decline in D1 delinquency, when coupled with its financial strength, provide a solid foundation. Nearly 81% of QFIN’s borrowers hail from tier 3 and 4 cities. A loan portfolio concentrated in credit cards, mortgage and auto loans positions the company well with the government’s focus on boosting consumer lending via banking partnerships.
The company has integrated AI across its operations, mainly in user acquisition and advertisements. This strategy is yielding sufficient efficiency gains, wherein user outreach has improved 25.1% and the average cost per credit line user has declined 10%.
QFIN has witnessed 9% growth in return on investment from automated ad placements, indicating that the AI-driven strategies will be key in driving user and volume growth in response to the aiding macro-environment.
QFIN’s Robust Liquidity & Strong Profitability Position
Qifu Technology’s strong cash reserves of $1.4 billion at the end of the fourth quarter of 2024, with $188 million as current debt, demonstrate its healthy financial position. This robust cash position strengthens the company’s liquidity to fund growth initiatives.
QFIN’s current ratio of 2.45 exceeds the industry average of 1.76, implying its ability to effectively meet short-term obligations. The metric has jumped 22.5% from the year-ago quarter, reassuring investors about the company’s motivation to improve its liquidity position in the long run.
The company's impressive return on equity of 27.3%, far surpassing the industry’s average of 5.5%, reflects its exceptional profitability and efficient use of shareholder capital. The company’s solid liquidity, coupled with high profitability, positions Qifu Technology for sustained growth, providing investors with confidence in its financial stability and operational effectiveness. The company's strong financial metrics elevate its competitiveness in the digital lending sector, setting it up for long-term success.
Qifu Technology Stock Looks Cheap
The QFIN stock looks cheap and appealing to investors. It is priced at 6.4 times forward 12-month earnings per share, which is significantly lower than the industry’s average of 24.2 times. When looking at the trailing 12-month EV-to-EBITDA ratio, Qifu Technology is trading at 5.3 times, far below the industry’s average of 30 times.
QFIN’s Optimistic Top & Bottom-Line Prospects
The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $2.4 billion, indicating 2.2% growth from the year-ago reported level. For 2026, the top line is pegged at $2.7 billion, suggesting a 12.4% year-over-year increase.
The consensus estimate for 2025 earnings is pegged at $6.93 per share, indicating a 22.4% increase from the prior year's actual. For 2026, the bottom line is pinned at $7.77 per share, hinting at a 12% year-over-year rise.
Verdict: Buy Qifu Technology Now
QFIN’s healthy financial status positions it well to capitalize on the consumption-driven policies initiated by China. The company’s AI-driven strategy is crucial for achieving significant growth in this supportive macroeconomic environment. A strong liquidity position, coupled with healthy profitability, is a green flag for investors.
We believe that a fundamentally strong stock that possesses a discounted valuation needs to find its place in investors’ long-term portfolios. Hence, we urge them to hurry up and buy Qifu Technology right now.
QFIN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.