Futu Holdings Ltd (FUTU, Financial) has recently experienced a notable uptick in its stock performance. With a current market capitalization of $8.82 billion, the stock price stands at $63.16, reflecting a 2.78% gain over the past week. Over the last three months, the company has seen an impressive 21.37% gain in its stock price. When compared to the GF Value of $77.53, Futu Holdings is currently considered modestly undervalued. This is a shift from three months ago when the stock was deemed significantly undervalued with a past GF Value of $93.83. This change in valuation suggests that investors are recognizing the company's potential and adjusting their perceptions accordingly.
Introduction to Futu Holdings Ltd
Futu Holdings Ltd operates within the capital markets industry, providing a comprehensive online brokerage service. The company's digital platform, Futu NiuNiu, offers users access to market data, trading services, and news feeds for equity markets in Hong Kong, Mainland China, Singapore, and the United States. Futu generates revenue primarily through brokerage commissions and handling charges. The platform's user-friendly interface and integrated services have positioned Futu as a competitive player in the online investing space.
Assessing Futu's Profitability
Futu Holdings Ltd boasts a strong Profitability Rank of 8 out of 10, indicating a robust financial position within its industry. The company's operating margin stands at an impressive 51.57%, outperforming 84.59% of its industry peers. Additionally, Futu's return on equity (ROE) is 19.13%, surpassing 85.55% of competitors, while its return on assets (ROA) at 3.92% is better than 71.82% of industry peers. The return on invested capital (ROIC) is a remarkable 21.41%, which is higher than 88.26% of companies in the same sector. These figures not only demonstrate Futu's efficiency in generating profits but also its ability to effectively utilize its assets and equity to drive financial growth. Over the past decade, Futu has maintained profitability for five years, showcasing its resilience and potential for sustained success.
Growth Trajectory of Futu Holdings
The Growth Rank for Futu Holdings is a perfect 10 out of 10, reflecting the company's exceptional expansion in both revenue and profitability. The 3-year revenue growth rate per share is a staggering 79.00%, which is higher than 92.47% of its industry counterparts. Over a 5-year period, the revenue growth rate per share has been 83.70%, outpacing 97.69% of competitors. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 18.93%, better than 94.74% of industry peers. The 3-year EPS without NRI growth rate is an extraordinary 151.50%, exceeding 96.32% of companies within the same industry. These growth metrics underscore Futu's strong performance and its potential for continued upward momentum.
Notable Shareholders in Futu Holdings
Among the notable shareholders of Futu Holdings, Jim Simons (Trades, Portfolio) holds 18,500 shares, representing a 0.01% share percentage. Another significant holder is the iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio), with 10,725 shares, also accounting for a 0.01% share percentage. These investments by prominent figures and institutions reflect confidence in Futu's business model and future prospects.
Competitive Landscape
In comparison to its competitors, Futu Holdings holds its own with a market cap of $8.82 billion. MarketAxess Holdings Inc (MKTX, Financial) has a slightly lower market cap of $8.62 billion, while Interactive Brokers Group Inc (IBKR, Financial) is close behind with $8.46 billion. Houlihan Lokey Inc (HLI, Financial) trails with a market cap of $7.14 billion. These figures place Futu Holdings at the forefront of its competitive set, indicating its strong market position within the capital markets industry.
Conclusion: Futu's Market Position and Outlook
In summary, Futu Holdings Ltd has demonstrated a solid stock performance with recent gains and a valuation that suggests it is modestly undervalued. The company's profitability and growth metrics are impressive, with high ranks that surpass many of its industry peers. When compared to its competitors, Futu's market cap indicates a strong position within the capital markets sector. Given its robust financial health and promising growth trajectory, Futu Holdings Ltd presents an attractive opportunity for investors looking for exposure to the online brokerage industry. The company's future outlook appears bright, with potential for continued success and market share expansion.
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.
