Qifu Technology Inc (QFIN, Financial) has recently caught the attention of investors with its notable stock performance. Over the past week, the company's stock price has seen a gain of 6.46%, closing at $16.4. This uptick is part of a broader trend, with the stock experiencing a 12.98% increase over the past three months. Currently, Qifu Technology Inc boasts a market capitalization of $2.65 billion. When compared to the GF Value of $20.41, the stock appears to be Modestly Undervalued, a consistent valuation from three months ago when the GF Value was at $18.38. This suggests that the stock may still have room to grow, offering a potentially attractive opportunity for value investors.
Introducing Qifu Technology Inc
Qifu Technology Inc operates within the credit services industry, focusing on the Chinese market. The company has carved out a niche as a Credit-Tech platform, providing personalized credit services to consumers and small to medium-sized enterprises (SMEs). Qifu Technology Inc leverages advanced technology solutions to assist financial institutions in identifying and meeting the diverse credit needs of their clients. By enhancing credit assessments and managing credit risks more effectively, the company has positioned itself as a key player in the financial technology sector. 
Assessing Profitability
Qifu Technology Inc's Profitability Rank stands at 5/10 as of September 30, 2023, reflecting a moderate level of profitability. The company's Return on Equity (ROE) is an impressive 20.52%, which is higher than 87.23% of its peers in the industry. Additionally, its Return on Assets (ROA) is at 9.58%, surpassing 92.62% of the companies in the same sector. Over the past decade, Qifu Technology Inc has maintained profitability for six years, outperforming 34.04% of its industry counterparts. These figures indicate a strong ability to generate profits relative to its equity and assets. 
Exploring Growth Potential
The company's Growth Rank is an impressive 8/10, signaling robust growth prospects. Qifu Technology Inc's 3-Year Revenue Growth Rate per Share stands at 22.50%, outperforming 77.87% of its industry peers. The 5-Year Revenue Growth Rate per Share is even more remarkable at 69.30%, eclipsing 97.45% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 8.78%, which is better than 50.82% of the companies in the industry. Furthermore, the 3-Year EPS without NRI Growth Rate is 14.80%, surpassing 58.12% of the industry. These growth metrics underscore Qifu Technology Inc's strong trajectory and potential for future expansion. 
Notable Shareholders
Among the significant shareholders of Qifu Technology Inc, Sarah Ketterer (Trades, Portfolio) stands out with 1,132,917 shares, representing a 0.7% stake in the company. Following her is the renowned investor Ray Dalio (Trades, Portfolio), holding 264,354 shares, which translates to a 0.16% share percentage. Additionally, the iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio) holds a smaller stake of 20,912 shares, accounting for 0.01% of the company's shares. These prominent investors' involvement provides a vote of confidence in Qifu Technology Inc's business model and future prospects.
Competitive Landscape
In comparison to its competitors, Qifu Technology Inc holds its ground with a market cap of $2.65 billion. Lufax Holding Ltd (LU, Financial) has a market cap of $1.65 billion, while Upstart Holdings Inc (UPST, Financial) is valued at $2.24 billion, and Navient Corp (NAVI, Financial) comes in at $1.89 billion. This places Qifu Technology Inc at the forefront of its industry peers in terms of market capitalization, indicating a strong position within the competitive landscape.
Conclusion
In summary, Qifu Technology Inc's recent stock performance, coupled with its modest undervaluation according to GF Value, paints a promising picture for investors. The company's solid profitability and impressive growth rates, both historically and projected, suggest that it is well-positioned for continued success. With significant shareholders maintaining confidence in the company and a competitive edge in the market, Qifu Technology Inc appears to be an attractive option for value investors looking for growth potential in the credit services industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
