Qifu Technology (QFIN) AI Stock Analysis

• Market Cap: $2.90B
• Dividend Yield: 6.34%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 3.2
• Beta (1Y): 1.17
• Revenue Growth: 9.90%
• EPS Growth: 68.56%
• Country: US
• Employees: 3,527
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.79
• Shares Outstanding: 148,270,500
• 10 Day Avg. Volume: 2,957,069
• 30 Day Avg. Volume: 1,989,509
• PEG Ratio: 0.12
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 2.43
• P/FCF Ratio: 4.54
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 0.40
• Enterprise Value/Ebitda: 0.56
• 1Y Price Target: $44.35
• Price Target Upside: 93.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $27.00 ▲(18.01% Upside)

Qifu Technology's strong financial performance and attractive valuation are major strengths, contributing positively to the overall score. However, the bearish technical indicators and challenges highlighted in the earnings call, such as regulatory uncertainties and increased provisions for risk-bearing loans, weigh down the score. The company's strategic advancements in AI and international expansion offer potential growth opportunities, but economic headwinds remain a concern.

Positive Factors

Revenue Growth

The significant increase in loan facilitation volume indicates strong demand for Qifu's services, supporting sustained revenue growth and market expansion.

AI and Risk Management Advancements

Advancements in AI enhance Qifu's competitive edge in risk management, improving decision accuracy and operational efficiency, which are crucial for long-term success.

International Expansion

The expansion into the U.K. market represents a strategic move to diversify revenue streams and capture new growth opportunities, strengthening Qifu's global presence.

Negative Factors

Regulatory Uncertainty

Regulatory changes can impact business operations and profitability, creating uncertainty in revenue projections and necessitating adjustments in business strategy.

Increased Provisions for Risk-bearing Loans

Higher provisions indicate increased risk exposure, which can strain financial resources and impact profitability if delinquency rates rise.

Economic Uncertainties

Economic uncertainties can affect consumer behavior and financial markets, posing challenges to revenue stability and strategic planning.

Qifu Technology Business Overview & Revenue Model

Company Description

Qifu Technology, Inc., together with its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. The company provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, 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 offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. Qifu Technology, Inc. was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Qifu Technology generates revenue through multiple key streams, primarily from interest income on consumer loans and fees associated with its financial services. The company facilitates lending by acting as a platform that matches borrowers with lenders, earning origination fees and service charges. Additionally, Qifu Technology monetizes its data analytics capabilities by providing insights and risk assessment services to financial institutions, thus creating another significant revenue stream. Partnerships with banks and other financial entities enhance its service offerings and contribute to its earnings by expanding its reach in the consumer lending market.

Qifu Technology Financial Statement Overview

Summary

Qifu Technology exhibits a robust financial profile with strong profitability, efficient operations, and prudent financial management. The company is well-positioned for growth with solid revenue expansion and effective cash flow management. Low leverage and high returns on equity further enhance its financial stability, making it a strong performer in the financial credit services industry.

Income Statement

Qifu Technology demonstrates strong financial performance with impressive gross and net profit margins, indicating high profitability. The company has shown significant revenue growth in the TTM period, nearly doubling its revenue, which is a positive indicator of business expansion. The EBIT and EBITDA margins are also robust, reflecting efficient operational management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, suggesting prudent financial leverage and a strong equity position. The return on equity is commendable, indicating effective use of shareholders' funds to generate profits. The equity ratio is healthy, showing a stable financial structure with a good proportion of equity financing.

Cash Flow

Cash flow metrics are strong, with a high operating cash flow to net income ratio, indicating good cash generation relative to reported earnings. The free cash flow growth is positive, supporting the company's ability to reinvest in growth opportunities. The free cash flow to net income ratio is excellent, showing efficient conversion of profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.24B	17.17B	16.29B	16.55B	16.64B	13.56B
Gross Profit	12.51B	10.60B	10.45B	11.70B	12.84B	10.36B
EBITDA	9.00B	8.08B	7.98B	8.92B	9.93B	8.62B
Net Income	7.25B	6.26B	4.29B	4.02B	5.78B	3.50B
Balance Sheet
Total Assets	59.75B	48.13B	45.82B	40.34B	33.50B	24.39B
Cash, Cash Equivalents and Short-Term Investments	10.19B	7.85B	4.19B	7.22B	6.12B	4.42B
Total Debt	6.32B	1.65B	930.20M	220.22M	436.53M	230.30M
Total Liabilities	35.65B	23.89B	23.81B	21.41B	18.29B	14.91B
Stockholders Equity	24.06B	24.19B	21.94B	18.85B	15.20B	9.48B
Cash Flow
Free Cash Flow	10.70B	9.19B	7.03B	5.90B	5.76B	5.31B
Operating Cash Flow	10.85B	9.34B	7.12B	5.92B	5.79B	5.33B
Investing Cash Flow	-15.31B	-7.99B	-11.15B	-7.36B	-6.06B	892.77M
Financing Cash Flow	4.32B	-2.11B	1.07B	3.20B	2.26B	-3.28B

Qifu Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QFIN, the sentiment is Negative. The current price of 22.88 is below the 20-day moving average (MA) of 24.13, below the 50-day MA of 27.16, and below the 200-day MA of 36.08, indicating a bearish trend. The MACD of -1.53 indicates Negative momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 40.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QFIN.

Qifu Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FINV	76 Outperform	$1.53B	4.07	18.75%	4.60%	8.41%	34.76%
QFIN	75 Outperform	$2.90B	3.17	31.10%	6.34%	9.90%	68.56%
YRD	75 Outperform	$457.95M	2.58	13.64%	8.30%	12.69%	-35.36%
LX	72 Outperform	$720.17M	3.38	14.86%	7.10%	3.11%	95.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
QD	64 Neutral	$784.35M	11.29	4.57%	―	-39.25%	―
LU	52 Neutral	$2.43B	―	―	―	―	―

Qifu Technology Corporate Events

Qifu Technology’s Balanced Earnings Call Highlights Growth and Challenges

The recent earnings call from Qifu Technology, Inc. presented a balanced sentiment, highlighting significant achievements alongside challenges. The company reported notable growth in loan facilitation volume, non-GAAP net income, and ABS issuance. However, it also acknowledged the challenges posed by regulatory uncertainties and increased provisions for risk-bearing loans. Strategic advancements in AI and international expansion were also key points of discussion, despite facing economic headwinds and regulatory impacts.

Qifu Technology Reports Strong Q2 2025 Results

Qifu Technology, Inc., a prominent AI-driven Credit-Tech platform in China, specializes in providing technology services that facilitate the loan lifecycle for financial institutions, consumers, and SMEs. The company leverages advanced machine learning and data analytics to enhance credit accessibility and personalization.