Should you buy Futu Holdings Ltd stock? 💰

18 mai 2022

💥We 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.💥

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:

✅ FUTU has high-quality earnings.

✅ FUTU has become profitable over the past 5 years, with earnings growth of 76.2% per year.

✅ FUTU's earnings growth over the past year (112%) has outpaced the capital markets sector by 62.5%.

✅ FUTU has more cash than total debt.

✅ FUTU's debt to equity ratio has fallen from 139.5% to 51.6% over the past five years.

✅ FUTU's debt is well covered by cash flow from operations (55.5%).

✅ FUTU's management team is seasoned and experienced (average tenure of 5.2 years).

✅ Shareholders have not experienced significant dilution in the past year.