Futu Holdings Limited Fundamental Analysis
Futu Holdings Limited (FUTU) shows strong financial fundamentals with a PE ratio of 9.99, profit margin of 41.83%, and ROE of 26.62%. The company generates $23.9B in annual revenue with strong year-over-year growth of 67.83%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FUTU's fundamental strength across five key dimensions:
Efficiency Score
WeakFUTU struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFUTU trades at attractive valuation levels.
Growth Score
ModerateFUTU shows steady but slowing expansion.
Financial Health Score
ExcellentFUTU maintains a strong and stable balance sheet.
Profitability Score
ModerateFUTU maintains healthy but balanced margins.
Key Financial Metrics
Is FUTU Expensive or Cheap?
P/E Ratio
FUTU trades at 9.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FUTU's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Futu Holdings Limited at 2.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.34 times EBITDA. This is generally considered low.
How Well Does FUTU Make Money?
Net Profit Margin
For every $100 in sales, Futu Holdings Limited keeps $41.83 as profit after all expenses.
Operating Margin
Core operations generate 62.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.62 in profit for every $100 of shareholder equity.
ROA
Futu Holdings Limited generates $4.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Futu Holdings Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Futu Holdings Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
FUTU converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How FUTU Stacks Against Its Sector Peers
| Metric | FUTU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.99 | 19.38 | Better (Cheaper) |
| ROE | 26.62% | 804.00% | Weak |
| Net Margin | 41.83% | -7623.00% (disorted) | Strong |
| Debt/Equity | 0.55 | 1.07 | Strong (Low Leverage) |
| Current Ratio | 1.18 | 609.22 | Neutral |
| ROA | 4.08% | -20946.00% (disorted) | Weak |
FUTU outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Futu Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
540.93%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
694.43%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
85.50%
Industry Style: Value, Dividend, Cyclical
High Growth