Should you buy Futu Holdings Ltd stock? ๐ฐ
๐ฅWe are not surprised by the recent downward movement, as the company reported a record net loss in the first quarter, and the U.S. is tightening regulations on Asian companies, which does not help matters.๐ฅ
The company has not performed well in the last three months, so the stock has lost more than 20% since the beginning of the quarter, and investors are concerned that this is the first time the company has made a mistake and is looking at an even bigger drop
We disagree with investors, we think that despite the poor results and a rather bearish share price, Futu Holdings Limited will manage to recover faster than anyone thinks.
Here's why we think so:
โ FUTU has high-quality earnings.
โ FUTU has become profitable over the past 5 years, with earnings growth of 76.2% per year.
โ FUTU's earnings growth over the past year (112%) has outpaced the capital markets sector by 62.5%.
โ FUTU has more cash than total debt.
โ FUTU's debt to equity ratio has fallen from 139.5% to 51.6% over the past five years.
โ FUTU's debt is well covered by cash flow from operations (55.5%).
โ FUTU's management team is seasoned and experienced (average tenure of 5.2 years).
โ Shareholders have not experienced significant dilution in the past year.
The company has not performed well in the last three months, so the stock has lost more than 20% since the beginning of the quarter, and investors are concerned that this is the first time the company has made a mistake and is looking at an even bigger drop
We disagree with investors, we think that despite the poor results and a rather bearish share price, Futu Holdings Limited will manage to recover faster than anyone thinks.
Here's why we think so:
โ FUTU has high-quality earnings.
โ FUTU has become profitable over the past 5 years, with earnings growth of 76.2% per year.
โ FUTU's earnings growth over the past year (112%) has outpaced the capital markets sector by 62.5%.
โ FUTU has more cash than total debt.
โ FUTU's debt to equity ratio has fallen from 139.5% to 51.6% over the past five years.
โ FUTU's debt is well covered by cash flow from operations (55.5%).
โ FUTU's management team is seasoned and experienced (average tenure of 5.2 years).
โ Shareholders have not experienced significant dilution in the past year.
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