14.8 USD
+0.29 (+2%)
14.6 USD
-0.2 (-1.35%)
Overall KC gets a fundamental rating of 2 out of 10. We evaluated KC against 88 industry peers in the IT Services industry. Both the profitability and financial health of KC have multiple concerns. While showing a medium growth rate, KC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year KC has reported negative net income.
- KC had a positive operating cash flow in the past year.
- In the past 5 years KC always reported negative net income.
- The reported operating cash flow has been mixed in the past 5 years: KC reported negative operating cash flow in multiple years.
1.2 Ratios
- KC has a worse Return On Assets (-8.16%) than 67.05% of its industry peers.
- Looking at the Return On Equity, with a value of -30.12%, KC is doing worse than 69.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.16% | ||
| ROE | -30.12% | ||
| ROIC | N/A |
ROA(3y)-13.66%
ROA(5y)-11.35%
ROE(3y)-33.28%
ROE(5y)-25.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- KC has a worse Gross Margin (16.43%) than 82.95% of its industry peers.
- In the last couple of years the Gross Margin of KC has grown nicely.
- The Profit Margin and Operating Margin are not available for KC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 16.43% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y64.39%
GM growth 5Y145.13%
2. Health
2.1 Basic Checks
- KC does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for KC has been increased compared to 1 year ago.
- Compared to 5 years ago, KC has more shares outstanding
- The debt/assets ratio for KC is higher compared to a year ago.
2.2 Solvency
- KC has an Altman-Z score of 0.35. This is a bad value and indicates that KC is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.35, KC is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- KC has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
- KC has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: KC underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.35 |
ROIC/WACCN/A
WACC7.5%
2.3 Liquidity
- A Current Ratio of 0.96 indicates that KC may have some problems paying its short term obligations.
- KC has a worse Current ratio (0.96) than 79.55% of its industry peers.
- KC has a Quick Ratio of 0.96. This is a bad value and indicates that KC is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of KC (0.96) is worse than 78.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- KC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.94%, which is quite impressive.
- KC shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.11%.
- The Revenue has been growing by 14.50% on average over the past years. This is quite good.
EPS 1Y (TTM)34.94%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%115.38%
Revenue 1Y (TTM)24.11%
Revenue growth 3Y-4.93%
Revenue growth 5Y14.5%
Sales Q2Q%31.42%
3.2 Future
- Based on estimates for the next years, KC will show a very strong growth in Earnings Per Share. The EPS will grow by 27.21% on average per year.
- The Revenue is expected to grow by 18.84% on average over the next years. This is quite good.
EPS Next Y-14.92%
EPS Next 2Y4.5%
EPS Next 3Y10.85%
EPS Next 5Y27.21%
Revenue Next Year24.58%
Revenue Next 2Y20.89%
Revenue Next 3Y19.35%
Revenue Next 5Y18.84%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for KC. In the last year negative earnings were reported.
- Also next year KC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- KC's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 67.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.5%
EPS Next 3Y10.85%
5. Dividend
5.1 Amount
- KC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KINGSOFT CLOUD HOLDINGS-ADR / KC FAQ
Can you provide the ChartMill fundamental rating for KINGSOFT CLOUD HOLDINGS-ADR?
ChartMill assigns a fundamental rating of 2 / 10 to KC.
Can you provide the valuation status for KINGSOFT CLOUD HOLDINGS-ADR?
ChartMill assigns a valuation rating of 0 / 10 to KINGSOFT CLOUD HOLDINGS-ADR (KC). This can be considered as Overvalued.
How profitable is KINGSOFT CLOUD HOLDINGS-ADR (KC) stock?
KINGSOFT CLOUD HOLDINGS-ADR (KC) has a profitability rating of 1 / 10.
How financially healthy is KINGSOFT CLOUD HOLDINGS-ADR?
The financial health rating of KINGSOFT CLOUD HOLDINGS-ADR (KC) is 0 / 10.
Can you provide the expected EPS growth for KC stock?
The Earnings per Share (EPS) of KINGSOFT CLOUD HOLDINGS-ADR (KC) is expected to decline by -14.92% in the next year.