Qifu Technology, Inc. (NASDAQ:QFIN) Earnings Preview: A Deep Dive into Financial Health

• Earnings per Share (EPS) prediction of $1.72 with projected revenue of $4.61 billion.
• Price-to-Earnings (P/E) ratio at 3.63, suggesting potential undervaluation and growth opportunities.
• Strong liquidity with a current ratio of 2.45, indicating financial stability and the ability to cover short-term liabilities.

Qifu Technology, Inc. (NASDAQ:QFIN), a leading AI-driven Credit-Tech platform in China, is preparing to release its quarterly earnings on May 19, 2025. Analysts on Wall Street predict an earnings per share (EPS) of $1.72 and project the company's revenue to be around $4.61 billion. This release will provide insights into the company's financial health and performance.

QFIN's financial metrics reveal a company with a strong foundation. The price-to-earnings (P/E) ratio is approximately 3.63, indicating a low valuation relative to its earnings. This suggests that the stock might be undervalued, offering potential growth opportunities for investors. The price-to-sales ratio of about 1.47 further supports this, showing that the market values the company's sales at 1.47 times its revenue.

The enterprise value to sales ratio stands at around 1.27, reflecting the company's total valuation in relation to its sales. This ratio, combined with an enterprise value to operating cash flow ratio of approximately 2.11, indicates that QFIN generates significant cash flow relative to its valuation. Such metrics highlight the company's efficiency in converting sales into cash flow, a positive sign for investors.

QFIN's earnings yield is about 27.51%, a strong indicator of profitability. This high yield suggests that the company is generating substantial earnings relative to its stock price. Additionally, the debt-to-equity ratio is quite low at 0.058, indicating a conservative approach to leveraging debt. This low ratio suggests that QFIN is not heavily reliant on borrowed funds, reducing financial risk.

The company's current ratio is approximately 2.45, indicating a strong liquidity position. This means QFIN has more than enough assets to cover its short-term liabilities, ensuring financial stability. As QFIN prepares to announce its earnings, these financial metrics provide a comprehensive view of its robust financial health and potential for future growth.