360 Finance Inc. (NASDAQ:QFIN) on the Path to Profitability

360 Finance Inc. (NASDAQ:QFIN) on the Path to Profitability


The 360 Finance Inc. (QFIN) shares are trading at higher $11.51 and the avg recommendation for the stock is Strong Buy. The current analyst price target stands at $13.89.

To add more color to this target, the company’s high over the last year is $12.24 and the low is $6.37. Over the last 52 weeks, QFIN is down -5.96% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, QFIN reported a profit of $400.41 million. 360 Finance Inc. also saw revenues increase to $449.51 million. In addition, QFIN has free cash flow of $0.0 as of 03-2020 The company’s EBITDA came in at $48.41 million which compares well with its peers.

QFIN booked profit margins of 18.90%, its Return on Equity (ROE) is 30.30%, and its Return on Assets is 10.20%. All told, it is clear that, QFIN needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. QFIN has a short ratio of 1.79 and outstanding shares of 146.80M.

Company Outlook

QFIN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.44 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.84. 360 Finance Inc. QFIN also noted assets of $3.22 billion at the end of the last quarter. Investors should also keep an eye on sector updates as QFIN has historically followed its peers on positive news.

All told, 360 Finance Inc. QFIN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, QFIN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

360 Finance Inc. QFIN is now commanding a market cap of 1.41B and a float of 84.35M. QFIN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of QFIN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in QFIN, either long or short, and we have not been compensated for this article.