Qfin Holdings Inc. American Depositary Shares (QFIN)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for a business I can understand and a price that gives me a margin of safety. Qfin is an AI-driven credit-tech platform in China, matching borrowers with financial institutions. That is a lending-adjacent, regulated, cyclical business, not a consumer staple. At the close on 2026-10-13, the shares were $5.75. On FairStock's calculations, that price gives a P/E of 1.32, a P/B of 0.19, and a Graham Number of $100.04, implying a 94.25% margin of safety. The dividend yield is 15.33%, and the trailing FCF yield is 555.3%. If those numbers were durable, this would be a classic cigar butt with a very large puff. But I must test durability. The Piotroski F-Score is only 4/9, and the Altman Z-Score is 0.08, a red flag for a credit business even with a D/E of 0.14. ROE is 15.26%, but ROCE is 6.55%, so returns on total capital are modest. In fiscal Q2 2026, revenue was $2.6B and net income was $405.9M, a 15.55% net margin. Yet the supplied growth figures show revenue growth of 23.67% while profit growth is -20.35%, so growth is not converting into profit. The market seems to price Qfin for terminal decline, default, or regulatory wipeout. My Graham instinct says the assets and earnings might be worth far more. My Buffett instinct says a credit-tech platform in China with a 0.08 Z-score is not a moat; it is a question mark. I would want proof that the cash flow is real and repeatable before trusting a 1.32 P/E.

In plain English: The company runs an AI-driven credit platform in China that connects borrowers with financial institutions. It is profitable, with $2.6B of revenue and $405.9M of net income in fiscal Q2 2026, and it pays a very large dividend. The stock price looks extremely cheap compared with its reported profit and accounting value, but the business operates in a risky, regulated lending-related industry and profit is not growing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer