Futu Holdings Ltd (FUTU, Financial) has seen a significant surge in its stock price over the past three months. The company's market cap stands at $7.02 billion, with its current stock price at $50.28, marking a 25.77% increase from its price three months ago at $43.51. Over the past week, the stock price has seen a slight gain of 0.24%. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently at $95.77, up from $86.38 three months ago. Despite the increase in stock price, the GF Valuation still indicates that the stock is significantly undervalued, similar to its status three months ago.
Unpacking Futu Holdings Ltd
Futu Holdings Ltd operates in the Capital Markets industry as an online broker providing comprehensive online investing services. The company's digital platform, Futu NiuNiu, offers market data, trading services, and news feeds for equity markets in Hong Kong, Mainland China, Singapore, and the United States. The company's revenue is primarily generated from brokerage commission and handling charge services. 
Profitability Analysis
Futu Holdings Ltd's Profitability Rank stands at 4 out of 10, indicating a moderate level of profitability. The company's Return on Equity (ROE) is 17.19%, which is better than 83.18% of the 767 companies in the same industry. The Return on Assets (ROA) is 3.45%, outperforming 71.84% of the 792 companies in the industry. Over the past decade, the company has had five years of profitability, which is better than 30.97% of the 746 companies in the industry. 
Growth Prospects
The company's Growth Rank is 7 out of 10, indicating strong growth potential. The 3-Year Revenue Growth Rate per Share is 89.30%, outperforming 93.24% of the 680 companies in the industry. The 5-Year Revenue Growth Rate per Share is 95.00%, better than 97.71% of the 611 companies in the industry. The company's projected Total Revenue Growth Rate for the next 3 to 5 years is 22.93%, which is better than 94.37% of the 71 companies in the industry. The 3-Year EPS without NRI Growth Rate is 151.50%, outperforming 95.66% of the 553 companies in the industry. 
Major Stock Holders
The top three holders of Futu Holdings Ltd's 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, accounting for 0.8% of the total shares. Jim Simons (Trades, Portfolio) holds 95,900 shares, making up 0.07% of the total shares. iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio) holds 13,252 shares, accounting for 0.01% of the total shares.
Competitive Landscape
Futu Holdings Ltd faces competition from Evercore Inc (EVR, Financial) with a market cap of $5.07 billion, Houlihan Lokey Inc (HLI, Financial) with a market cap of $7.05 billion, and Interactive Brokers Group Inc (IBKR, Financial) with a market cap of $9.87 billion.
Conclusion
In conclusion, Futu Holdings Ltd has demonstrated strong growth and profitability, with its stock price seeing a significant surge over the past three months. Despite the increase, the stock remains significantly undervalued according to the GF Valuation. The company's strong growth prospects, coupled with its solid profitability, make it a compelling option for investors. However, it's important to consider the competitive landscape and the company's position within it.
