Futu Holdings Ltd (FUTU, Financial) has been making waves in the stock market with its impressive performance. The company's market cap stands at $8.31 billion, with its stock price currently at $59.52. Over the past week, the stock has seen a gain of 1.04%, and over the past three months, it has skyrocketed by 50.01%. 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 GF Value of FUTU is $75.11, indicating that the stock is modestly undervalued. Three months ago, the GF Value was $88.21, suggesting that the stock was significantly undervalued at that time.
Unpacking Futu Holdings Ltd
Futu Holdings Ltd operates in the Capital Markets industry as an online broker providing comprehensive 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 boasts a Profitability Rank of 8/10, indicating a high level of profitability compared to its industry peers. The company's Operating Margin stands at 51.57%, better than 85.63% of 647 companies in the same industry. The ROE is 19.13%, outperforming 85.6% of 771 companies, while the ROA is 3.92%, better than 72.52% of 797 companies. The ROIC is 21.41%, surpassing 88.54% of 672 companies. Over the past decade, the company has had 5 years of profitability, better than 30.97% of 746 companies. 
Growth Prospects
Futu Holdings Ltd has a Growth Rank of 9/10, indicating robust growth compared to its industry peers. The company's 3-Year Revenue Growth Rate per Share is 79.00%, better than 92.39% of 683 companies. The 5-Year Revenue Growth Rate per Share is 83.70%, outperforming 97.39% of 613 companies. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is 18.84%, better than 95.89% of 73 companies. The 3-Year EPS without NRI Growth Rate is 151.50%, surpassing 96.21% of 554 companies. 
Top Holders
The top three holders of Futu Holdings Ltd's stock are Baillie Gifford (Trades, Portfolio), holding 1,113,861 shares (0.8% share percentage), Jim Simons (Trades, Portfolio), holding 95,900 shares (0.07% share percentage), and iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio), holding 13,252 shares (0.01% share percentage).
Competitive Landscape
Futu Holdings Ltd operates in a competitive industry with key players such as Evercore Inc (EVR, Financial) with a market cap of $5.24 billion, Houlihan Lokey Inc (HLI, Financial) with a market cap of $7.47 billion, and Interactive Brokers Group Inc (IBKR, Financial) with a market cap of $9.53 billion.
Conclusion
In conclusion, Futu Holdings Ltd's stock performance, profitability, and growth prospects are impressive. The company's robust profitability and growth ranks, coupled with its modest undervaluation, make it an attractive investment. However, investors should also consider the competitive landscape and the holdings of top investors. With its current position, Futu Holdings Ltd seems poised for a promising future.
