Futu Holdings Ltd (FUTU, Financial), a leading player in the Capital Markets industry, has been making waves in the stock market with its impressive performance. The company's stock price has seen a significant surge, with a 13.57% gain over the past week and a whopping 47.25% gain over the past three months. As of October 11, 2023, the stock is trading at $66.99, with a market cap of $9.35 billion. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value stands at $75.9, indicating that the stock is modestly undervalued. This is a significant improvement from three months ago when the stock was significantly undervalued with a GF Value of $91.34.
Company Overview
Futu Holdings Ltd is an online broker that provides comprehensive online investing services. The company operates through its digital platform, Futu NiuNiu, offering market data, trading services, and news feeds for equity markets in Hong Kong, Mainland China, Singapore, and the United States. The company's revenue primarily comes from brokerage commission and handling charge services. 
Profitability Analysis
Futu Holdings Ltd boasts a high Profitability Rank of 8/10, indicating a strong level of profitability. The company's operating margin stands at 51.57%, better than 85.62% of companies in the industry. The ROE and ROA, at 19.13% and 3.92% respectively, are also better than the majority of companies in the industry. The company's ROIC of 21.41% is better than 88.54% of companies, demonstrating its efficiency in generating cash flow relative to the capital invested in its business. Over the past 10 years, the company has maintained profitability for 5 years, better than 30.76% of companies. 
Growth Prospects
Futu Holdings Ltd has a strong Growth Rank of 9/10, indicating robust growth. The company's 3-year and 5-year revenue growth rates per share stand at 79.00% and 83.70% respectively, outperforming 92.73% and 97.68% of companies respectively. The company's future 3-year to 5-year total revenue growth rate estimate is 18.89%, better than 97.26% of companies. The 3-year EPS without NRI growth rate is 151.50%, better than 96.16% of companies. 
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 the largest share with 1,113,861 shares, accounting for 0.8% of the total shares. Jim Simons (Trades, Portfolio) holds 95,900 shares, accounting for 0.07% of the total shares. iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio) holds 10,725 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 $5.09 billion, Houlihan Lokey Inc (HLI, Financial) with a market cap of $7.5 billion, and Interactive Brokers Group Inc (IBKR, Financial) with a market cap of $9.44 billion.
Conclusion
In conclusion, Futu Holdings Ltd's impressive stock performance, high profitability, and strong growth prospects make it a compelling choice for investors. Despite facing stiff competition, the company's robust business model and efficient operations have enabled it to maintain a strong position in the market. However, investors should keep an eye on the company's valuation and future growth estimates to make informed investment decisions.
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.
