Futu Holdings Ltd (FUTU, Financial), a leading player in the Capital Markets industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by an impressive 43.20%, from a modestly undervalued position to its current price of $61.83. This recent performance, coupled with a market cap of $8.63 billion, paints a promising picture for the company's future prospects.
Unpacking Futu Holdings Ltd's Stock Performance
Over the past week, FUTU's stock price has seen a gain of 10.44%, contributing to the overall 43.20% increase over the past three months. The company's GF Value, a measure of a stock's intrinsic value as defined by GuruFocus.com, currently stands at $75.86. This indicates that the stock is modestly undervalued, offering potential for further growth. Comparatively, the GF Value three months ago was $91.34, suggesting that the stock was significantly undervalued at that time.
Introduction to 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 its revenue primarily from brokerage commission and handling charge services.
Profitability Analysis of Futu Holdings Ltd
Futu Holdings Ltd boasts a Profitability Rank of 8/10, indicating a high level of profitability. The company's Operating Margin of 51.57% is better than 85.62% of companies in the same industry. Furthermore, the company's ROE, ROA, and ROIC, which measure the company's profitability in relation to its equity, assets, and invested capital respectively, are all higher than the majority of companies in the industry. Over the past 10 years, the company's profitability has been better than 30.76% of companies.
Growth Prospects of Futu Holdings Ltd
The company's Growth Rank of 9/10 suggests a high level of growth. The 3-Year and 5-Year Revenue Growth Rates per share are both higher than the majority of companies in the industry. The company's future total revenue growth rate estimate of 18.89% is better than 97.26% of companies. Additionally, the company's 3-Year EPS without NRI Growth Rate is better than 96.19% of companies.
Top Holders of Futu Holdings Ltd Stock
The top three holders of Futu Holdings Ltd 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, representing 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, representing 0.01% of the total shares.
Competitive Landscape
Futu Holdings Ltd faces competition from several companies in the Capital Markets industry. These include Evercore Inc (EVR, Financial) with a market cap of $5.13 billion, Houlihan Lokey Inc (HLI, Financial) with a market cap of $7.52 billion, and Interactive Brokers Group Inc (IBKR, Financial) with a market cap of $9.45 billion.
Conclusion
In conclusion, Futu Holdings Ltd's stock performance, profitability, and growth prospects position it favorably in the market compared to its competitors. The company's high profitability and growth ranks, coupled with its modest undervaluation, suggest potential for further stock price appreciation. However, investors should conduct thorough research and consider market dynamics before making 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.
