Futu Holdings Ltd (FUTU, Financial) has been making waves in the stock market with its impressive performance. The company's stock price has seen a significant surge of 53.74% over the past three months, from $43.51 to $59.82. In the past week alone, the stock price has gained 22.04%. With a market cap of $8.35 billion, Futu Holdings Ltd is a force to be reckoned with in the capital markets industry.
When it comes to valuation, the GF Value of Futu Holdings Ltd stands at $78.05, compared to $86.38 three months ago. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the company is modestly undervalued, a significant improvement from being significantly undervalued three months ago.
Unpacking Futu Holdings Ltd
Futu Holdings Ltd operates in the capital markets industry, providing one-stop online investing services. The company's digital platform, Futu NiuNiu, 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
Futu Holdings Ltd's Profitability Rank stands at 5/10, indicating a moderate level of profitability compared to other companies in the industry. The company's ROE (Return on Equity) is 19.13%, outperforming 85.86% of 764 companies in the capital markets industry. The ROA (Return on Assets) is 3.92%, better than 72.91% of 790 companies. Over the past decade, Futu Holdings Ltd has had five years of profitability, surpassing 30.78% of 744 companies. 
Growth Prospects
With a Growth Rank of 8/10, Futu Holdings Ltd demonstrates strong growth potential. The company's 3-year revenue growth rate per share is 89.30%, outperforming 93.21% of 677 companies. The 5-year revenue growth rate per share is an impressive 95.00%, better than 97.7% of 609 companies. Furthermore, the 3-year EPS without NRI growth rate is 151.50%, surpassing 95.64% of 551 companies. 
Top Holders of Futu Holdings Ltd
The top three holders of Futu Holdings Ltd's 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 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 13,252 shares, making up 0.01% of the total shares.
Competitive Landscape
Futu Holdings Ltd faces competition from Evercore Inc (EVR, Financial), Houlihan Lokey Inc (HLI, Financial), and Interactive Brokers Group Inc (IBKR, Financial). Evercore Inc has a market cap of $5.27 billion, Houlihan Lokey Inc's market cap stands at $7.24 billion, and Interactive Brokers Group Inc has a market cap of $9.71 billion.
Conclusion
In conclusion, Futu Holdings Ltd's impressive stock performance, robust profitability, and strong growth prospects make it a compelling player in the capital markets industry. The company's modest undervaluation presents an attractive opportunity for investors. However, the competitive landscape and the holdings of major shareholders should also be considered when evaluating the company's overall prospects.
