Futu Holdings Ltd (FUTU, Financial) has been making waves in the stock market with a significant 23.75% increase over the past three months. Despite a recent 7.42% decrease over the past week, the stock's performance remains robust. The company's current GF Value stands at $76.42, suggesting that the stock is modestly undervalued. This is a shift from three months ago when the GF Value was $91.34, indicating that the stock was significantly undervalued. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.
Company Overview: Futu Holdings Ltd
Futu Holdings Ltd operates in the Capital Markets industry, providing online investing services through its digital platform, Futu NiuNiu. The platform offers market data, trading services, and news feeds for equity markets in Hong Kong, Mainland China, Singapore, and the United States. The company generates revenue through brokerage commission and handling charge services. With a market cap of $8.39 billion, Futu Holdings Ltd is a significant player in the industry.
Profitability Analysis
Futu Holdings Ltd boasts a high Profitability Rank of 8/10, indicating a strong level of profitability. The company's operating margin of 51.57% is better than 85.96% of the 648 companies in the same industry. Similarly, its ROE, ROA, and ROIC are all higher than the industry average, standing at 19.13%, 3.92%, and 21.41% respectively. Over the past 10 years, the company has demonstrated profitability for five years, better than 31.01% of other companies.
Growth Prospects
Futu Holdings Ltd's Growth Rank of 10/10 suggests a high level of growth. The company's 3-year and 5-year revenue growth rates per share are 79.00% and 83.70% respectively, both higher than the industry average. The company's future revenue growth rate is estimated to be 18.90% over the next 3 to 5 years, better than 94.74% of 76 companies in the same industry.
Top 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 most shares, owning 1,113,861 shares, which equates to 0.8% of the company's stock. Jim Simons (Trades, Portfolio) holds 95,900 shares, or 0.07% of the stock, while iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio) holds 10,725 shares, or 0.01% of the stock.
Competitive Landscape
Futu Holdings Ltd faces competition from several companies in the Capital Markets industry. Evercore Inc (EVR, Financial) has a market cap of $4.99 billion, Houlihan Lokey Inc (HLI, Financial) has a market cap of $6.92 billion, and Interactive Brokers Group Inc (IBKR, Financial) has a market cap of $8.59 billion. Despite the competition, Futu Holdings Ltd's strong performance and growth prospects position it well in the industry.
Conclusion
In conclusion, Futu Holdings Ltd's stock performance, profitability, growth, and competitive position make it a compelling investment. Despite recent fluctuations, the stock's 23.75% increase over the past three months and its modest undervaluation suggest potential for further growth. The company's high profitability and growth ranks, coupled with its strong operating margin and revenue growth rates, further underscore its investment appeal. As such, Futu Holdings Ltd remains a stock to watch in the Capital Markets industry.
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.
