# Qfin _AI-generated trading idea · UNSPECIFIED · QFIN_ > Canonical page: https://commonquant.ai/research/for-you/qfin--99dedd7c-1716-5bf9-8ef9-861d7d6d8698 Qfin ## Idea Qfin ## Advanced Analysis ### Verdict: strong cash machine, broken chart — QFIN stays on the watch list The verdict is wait: Qfin's cash story is real, but the trend and the entry framework say this is a watch-list name, not a trade today. The strongest point for the idea is cash generation — FY2025 free cash flow rose 23.2% to $1.55B (97th percentile among 759 Financials peers) and shares outstanding fell 14.1%, lifting diluted EPS 11.3% to $3.15 despite flat net income of $854.5M. The strongest point against is that the earnings quality behind that EPS is deteriorating: operating margin slid from 43.9% to 34.8% and net margin fell 14.5 points to 31.1%, so the per-share growth is mostly buyback arithmetic against a stagnating bottom line. At $9.06, the stock trades about 25% below the 50-day EMA ($12.11) and the 50-day sits far below the 200-day EMA ($15.74), so no trend-confirmation condition is close except the MACD crossover (both lines at -1.23). The one ownership filing on file covers the period ended June 30, 2026 and is flagged as past its coverage deadline, so it is lagged context, not current confirmation of support. The verdict flips on margin stabilization: an operating margin that holds or recovers in the next filed results would validate the per-share compounding thesis, while another 9-point slide would break it. #### Conviction score breakdown Composite score computed by the server from the applicable evidence-tier dimensions. | Measure | Value | | --- | ---: | | Thesis support | 55/100 | | Trade readiness | 30/100 | | Risk quality | 55/100 | | Trigger proximity | 20/100 | | Fundamentals trend | 45/100 | | Score | 41/100 | | Composite Score | 41/100 | | Evidence Tier | rules\_not\_triggered | #### Decision scenarios Bull, base, and bear cases synthesized from the cited evidence tier. Likelihoods are rounded evidence-weighted judgments, not statistically calibrated forecasts. | Measure | Value | | --- | ---: | | Evidence Tier | rules\_not\_triggered | ### Trade now: QFIN is a watch-list setup — price is far below the trend gate Do nothing today — this is a waiting setup, not a signal. QFIN closed at $9.06 on September 5, and the long entry requires four conditions together. Only one is met: ADX (14) at 76.4 versus a 20 threshold. MACD sits right at its signal line (both -1.23), so that crossover is close. But the two trend conditions are far away: price at $9.06 is $3.05 below the 50-day EMA at $12.11, and the 50-day EMA at $12.11 is $3.62 below the 200-day EMA at $15.74. With the stock down 71% from its range high and RSI at 31, momentum is not remotely in the entry's favor. If an entry were triggered, the risk framework is already defined: a hard 2.0% stop loss, a 4.0% take profit (a 2:1 reward-to-risk ratio), a signal exit on any close back below the 50-day EMA, plus structural exits at the second resistance level (currently $9.20) and below the second support level (currently $8.80). With price at $9.06, the $9.20 target is only 1.5% away — closer than the 2% stop — which is why a mechanically triggered trade at these levels would deserve skepticism. "Wait" here means concretely: hold off until QFIN closes above the 50-day EMA, MACD crosses above its signal, ADX holds above 20, and the 50-day EMA moves back above the 200-day EMA — a full trend-repair, not a one-day bounce. The strategy's rules were evaluated on real daily bars and did not open an entry; this is a watch-list state by design, not a reason to doubt the rules. #### QFIN price and trigger map Uses the idea timeframe and keeps price levels on the price axis. | Measure | Value | | --- | ---: | | Ticker | QFIN | | Timeframe | 1d | ### Growth, Cash, and a Shrinking Share Count: The Bull Math on QFIN The strongest argument for Qfin Holdings is the cash generation. Free cash flow rose 23.2% to $1.55B in FY2025 from $1.26B a year earlier, and operating cash flow climbed 23.8% to $1.58B. Against $854.5M of net income, that is cash conversion well above reported earnings — the kind of gap that funds buybacks, dividends, and quiet per-share compounding. Among 759 Financials… #### QFIN Revenue Revenue trend from CommonQuant fundamentals/XBRL data; +141738.7% from first to latest point. | Measure | Value | | --- | ---: | | 2016-12-31 | $1658000 | | 2017-12-31 | $788144000 | | 2018-12-31 | $646791000 | | 2019-12-31 | $1324348000 | | 2020-12-31 | $2078767000 | | 2021-09-30 | $12213580000 | | 2021-12-31 | $2610495000 | | 2022-06-30 | $1269502000 | | 2022-09-30 | $1777940000 | | 2022-12-31 | $2400094000 | | 2023-12-31 | $2294403000 | | 2024-12-31 | $2351685000 | | Latest Value | $2351685000 | | Change Pct | $141738.66103739446 | | Ticker | QFIN | | Timeframe | reported periods | #### QFIN Free cash flow Free cash flow trend from CommonQuant fundamentals/XBRL data; +1876.4% from first to latest point. | Measure | Value | | --- | ---: | | 2016-12-31 | $-70877000 | | 2017-12-31 | $-118083000 | | 2018-12-31 | $40224000 | | 2019-12-31 | $423385000 | | 2020-12-31 | $813875000 | | 2021-09-30 | $3761072000 | | 2021-12-31 | $904559000 | | 2022-06-30 | $378232000 | | 2022-09-30 | $578750000 | | 2022-12-31 | $854772000 | | 2023-12-31 | $990689000 | | 2024-12-31 | $1259046000 | | Latest Value | $1259046000 | | Change Pct | $1876.3816188608432 | | Ticker | QFIN | | Timeframe | reported periods | #### QFIN sector percentile check Ranks QFIN against 759 companies in its sector using CommonQuant fundamentals. | Measure | Value | | --- | ---: | | Free cash flow | \97.03557312252964th percentile | | Return on equity | \91.86307519640852th percentile | | Operating margin | \85.22727272727273th percentile | | Gross margin | \75.98425196850394th percentile | | Ticker | QFIN | | Sector | Financials | | Peer Count | 759 | ### Scores - **Conviction score breakdown:** 41 - **Thesis support:** 55 - **Trade readiness:** 30 - **Risk quality:** 55 - **Trigger proximity:** 20 - **Fundamentals trend:** 45 ### Watch items - **QFIN — Price vs EMA (50)** - **QFIN — MACD line vs signal** - **QFIN — EMA (50) vs EMA (200)** - **QFIN — ADX (14)** - **QFIN — Support level 2** - **QFIN — Resistance level 2** ## Key details - Symbols: QFIN - Timeframes: 1d - Tags: \#canonical-demand, \#cluster-version:1, \#direction:unspecified, \#entity-kind:company, \#entity:Qfin Holdings, Inc., \#exchange:NASDAQ, \#horizon:unspecified, \#intent:research, \#symbol:QFIN ## Community - Upvotes: 0 - Views: 0 - Copies: 0 - Cosigns: 0 ## Related - [QFIN trade ideas](https://commonquant.ai/markets/qfin) - [Latest market news](https://commonquant.ai/news) ## About CommonQuant Research Ideas and Advanced Analysis are generated with fresh, LLM-selected news headlines and grounded in SEC XBRL fundamentals and peer percentiles. Strategies built from these ideas are automatically backtested (over a timeframe-dependent historical window with walk-forward tuning) and stress-tested before they can go live, then monitored against the news hourly while they run.