360 DigiTech - Potentially Undervalued Chinese Fintech SaaS Company, or I Lose Social Credit Score

Alright, so I usually stick to the North American markets because reading is hard and I have enough trouble figuring out how to use the self-checkout aisle at SafeWay, let alone analyze foreign equities from emerging markets. That being said, there is likely a greater opportunity to find undervalued companies overseas. With that, I present: 360 DigiTech, Inc. (NASDAQ: QFIN) is a data driven, technology empowered digital platform. Through its platform the Company enables financial institutions to provide better and targeted products and services to a broader consumer base. The Company also offers standardized risk management service, in the form of SaaS modules to institutional clients. When coupled with its partnership with 360 Group, the Company’s solutions created noticeable advantages in customer acquisition, funding optimization, risk assessment and post-lending management. The business itself is solid: Gross Margin of 87.10% Operating Margin of 41.10% Profit Margin of 36.40% Debt/Equity of 0.03 I think it is fundamentally undervalued for the following reasons: P/E of 3.99 EPS this Year of 37.20% ROA of 20.60% ROE of 51.90% ROI of 33.10 Or, everything could be fucking priced in and this thing is a total value trap. I'll lose my money and be sent to a re-education camp to slowly rebuild my social credit.

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360 DigiTech - Potentially Undervalued Chinese Fintech SaaS Company, or I Lose Social Credit Score

bullish

Alright, so I usually stick to the North American markets because reading is hard and I have enough trouble figuring out how to use the self-checkout aisle at SafeWay, let alone analyze foreign equities from emerging markets. That being said, there is likely a greater opportunity to find undervalued companies overseas. With that, I present:

360 DigiTech, Inc. (NASDAQ: QFIN) is a data driven, technology empowered digital platform. Through its platform the Company enables financial institutions to provide better and targeted products and services to a broader consumer base. The Company also offers standardized risk management service, in the form of SaaS modules to institutional clients. When coupled with its partnership with 360 Group, the Company’s solutions created noticeable advantages in customer acquisition, funding optimization, risk assessment and post-lending management.

The business itself is solid:

  1. Gross Margin of 87.10%
  2. Operating Margin of 41.10%
  3. Profit Margin of 36.40%
  4. Debt/Equity of 0.03

I think it is fundamentally undervalued for the following reasons:

  1. P/E of 3.99
  2. EPS this Year of 37.20%
  3. ROA of 20.60%
  4. ROE of 51.90%
  5. ROI of 33.10

Or, everything could be fucking priced in and this thing is a total value trap. I'll lose my money and be sent to a re-education camp to slowly rebuild my social credit.

 

 

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read-time
1 min

30.00

Target Price

7/ 10

Confidence

6-12 Months

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