Futu Holdings Ltd (FUTU, Financial), a leading player in the Capital Markets industry, has seen a significant surge in its stock price over the past three months. The company's stock price has gained a remarkable 53.60% over the past quarter, and 22.44% over the past week, reflecting a strong upward trend. The current market price of the stock is $65.34, with a market capitalization of $9.12 billion.
Understanding the GF Value of Futu Holdings Ltd
The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The current GF Value of Futu Holdings Ltd stands at $75.9, suggesting that the stock is modestly undervalued. This is a significant shift from three months ago when the GF Value was $91.34, indicating that the stock was significantly undervalued. This suggests that the recent surge in the stock price has brought it closer to its intrinsic value.
Introduction to Futu Holdings Ltd
Futu Holdings Ltd is an online broker providing one-stop online investing services. The company provides its services through its digital platform Futu NiuNiu, which includes market data, trading service, and news feed of Hong Kong, Mainland China, Singapore, and United States equity markets. It generates its revenue in the form of brokerage commission and handling charge services.
Profitability Analysis of Futu Holdings Ltd
The company's Profitability Rank stands at 8/10, indicating a high level of profitability. Key profitability metrics include an Operating Margin of 51.57%, ROE of 19.13%, ROA of 3.92%, and ROIC of 21.41%. The company has also demonstrated profitability over the past 10 years, with 5 years of profitability.
Growth Prospects of Futu Holdings Ltd
The company's Growth Rank is 9/10, indicating strong growth potential. Key growth metrics include a 3-Year Revenue Growth Rate per Share of 79.00%, a 5-Year Revenue Growth Rate per Share of 83.70%, and a future 3-Year to 5-Year Total Revenue Growth Rate of 18.89%. The company's 3-Year EPS without NRI Growth Rate is 151.50%, further highlighting its strong growth prospects.
Top Holders of Futu Holdings Ltd Stock
The top three holders of Futu Holdings Ltd stock are Baillie Gifford (Trades, Portfolio), Jim Simons (Trades, Portfolio), and iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio). Baillie Gifford (Trades, Portfolio) holds 1,113,861 shares, representing 0.8% of the total shares, while Jim Simons (Trades, Portfolio) holds 95,900 shares, representing 0.07% of the total shares. iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio) holds 10,725 shares, representing 0.01% of the total shares.
Competitive Landscape
Futu Holdings Ltd operates in a competitive industry, with key competitors including Evercore Inc (EVR, Financial) with a market cap of $5.15 billion, Houlihan Lokey Inc (HLI, Financial) with a market cap of $7.59 billion, and Interactive Brokers Group Inc (IBKR, Financial) with a market cap of $9.38 billion.
Conclusion
In conclusion, Futu Holdings Ltd has demonstrated strong performance, profitability, and growth, making it an attractive investment option. The company's stock price has seen a significant surge over the past three months, bringing it closer to its intrinsic value as indicated by the GF Value. With a high profitability rank, strong growth prospects, and a competitive position in the Capital Markets industry, Futu Holdings Ltd presents a compelling investment opportunity.
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.
