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KINGSOFT CLOUD HOLDINGS-ADR (KC) Stock Fundamental Analysis

NASDAQ:KC - Nasdaq - US49639K1016 - ADR - Currency: USD

15.23  +1.26 (+9.02%)

After market: 15.27 +0.04 (+0.26%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to KC. KC was compared to 82 industry peers in the IT Services industry. KC may be in some trouble as it scores bad on both profitability and health. KC is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

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.
In multiple years KC reported negative operating cash flow during the last 5 years.
KC Yearly Net Income VS EBIT VS OCF VS FCFKC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 -1B -2B -3B

1.2 Ratios

KC's Return On Assets of -11.18% is on the low side compared to the rest of the industry. KC is outperformed by 71.95% of its industry peers.
KC's Return On Equity of -38.05% is on the low side compared to the rest of the industry. KC is outperformed by 67.07% of its industry peers.
Industry RankSector Rank
ROA -11.18%
ROE -38.05%
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
KC Yearly ROA, ROE, ROICKC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 -10 -20 -30 -40

1.3 Margins

KC has a worse Gross Margin (17.22%) than 85.37% of its industry peers.
KC's Gross Margin has improved in the last couple of years.
KC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 17.22%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y64.39%
GM growth 5Y145.13%
KC Yearly Profit, Operating, Gross MarginsKC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80 -100

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0

2. Health

2.1 Basic Checks

KC does not have a ROIC to compare to the WACC, probably because it is not profitable.
KC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KC has more shares outstanding
Compared to 1 year ago, KC has a worse debt to assets ratio.
KC Yearly Shares OutstandingKC Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
KC Yearly Total Debt VS Total AssetsKC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

Based on the Altman-Z score of 0.41, we must say that KC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.41, KC is doing worse than 71.95% of the companies in the same industry.
KC has a Debt/Equity ratio of 0.95. This is a neutral value indicating KC is somewhat dependend on debt financing.
KC has a worse Debt to Equity ratio (0.95) than 63.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Altman-Z 0.41
ROIC/WACCN/A
WACC7.5%
KC Yearly LT Debt VS Equity VS FCFKC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B 6B 8B 10B

2.3 Liquidity

KC has a Current Ratio of 0.75. This is a bad value and indicates that KC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.75, KC is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
KC has a Quick Ratio of 0.75. This is a bad value and indicates that KC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.75, KC is doing worse than 82.93% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.75
Quick Ratio 0.75
KC Yearly Current Assets VS Current LiabilitesKC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 59.27% over the past year.
The Revenue has grown by 10.47% in the past year. This is quite good.
KC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.50% yearly.
EPS 1Y (TTM)59.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%72.86%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y-4.93%
Revenue growth 5Y14.5%
Sales Q2Q%29.59%

3.2 Future

KC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.40% yearly.
The Revenue is expected to grow by 18.84% on average over the next years. This is quite good.
EPS Next Y40.38%
EPS Next 2Y36.58%
EPS Next 3Y34.16%
EPS Next 5Y41.4%
Revenue Next Year24.73%
Revenue Next 2Y21.78%
Revenue Next 3Y20.49%
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.
KC Yearly Revenue VS EstimatesKC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5B 10B 15B 20B 25B
KC Yearly EPS VS EstimatesKC Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 -2 4 -4 -6

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for KC. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for KC. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
KC Price Earnings VS Forward Price EarningsKC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

KC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. KC is more expensive than 64.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 70.09
KC Per share dataKC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2 3 4

4.3 Compensation for Growth

KC's earnings are expected to grow with 34.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.58%
EPS Next 3Y34.16%

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0

5. Dividend

5.1 Amount

KC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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KINGSOFT CLOUD HOLDINGS-ADR

NASDAQ:KC (5/2/2025, 8:05:52 PM)

After market: 15.27 +0.04 (+0.26%)

15.23

+1.26 (+9.02%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)03-19 2025-03-19/bmo
Earnings (Next)05-22 2025-05-22/bmo
Inst Owners7.31%
Inst Owner Change-5.37%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.03B
Analysts82.67
Price Target20.69 (35.85%)
Short Float %87.89%
Short Ratio3.53
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.83%
Min EPS beat(2)10.35%
Max EPS beat(2)67.32%
EPS beat(4)4
Avg EPS beat(4)46.07%
Min EPS beat(4)10.35%
Max EPS beat(4)92.62%
EPS beat(8)6
Avg EPS beat(8)24.44%
EPS beat(12)7
Avg EPS beat(12)12.13%
EPS beat(16)7
Avg EPS beat(16)7.42%
Revenue beat(2)1
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-5.2%
Max Revenue beat(2)2.67%
Revenue beat(4)2
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-5.2%
Max Revenue beat(4)2.67%
Revenue beat(8)2
Avg Revenue beat(8)-4.53%
Revenue beat(12)3
Avg Revenue beat(12)-4.96%
Revenue beat(16)3
Avg Revenue beat(16)-4.82%
PT rev (1m)39.75%
PT rev (3m)166.89%
EPS NQ rev (1m)29.77%
EPS NQ rev (3m)38.87%
EPS NY rev (1m)31.37%
EPS NY rev (3m)47.5%
Revenue NQ rev (1m)10.08%
Revenue NQ rev (3m)22.42%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)11.32%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 3.76
P/FCF N/A
P/OCF 46.58
P/B 5.66
P/tB N/A
EV/EBITDA 70.09
EPS(TTM)-0.31
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)-1.59
FCFYN/A
OCF(TTM)0.33
OCFY2.15%
SpS4.05
BVpS2.69
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.18%
ROE -38.05%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 17.22%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y64.39%
GM growth 5Y145.13%
F-Score4
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Debt/EBITDA 11.03
Cap/Depr 291.6%
Cap/Sales 47.31%
Interest Coverage N/A
Cash Conversion 141.6%
Profit Quality N/A
Current Ratio 0.75
Quick Ratio 0.75
Altman-Z 0.41
F-Score4
WACC7.5%
ROIC/WACCN/A
Cap/Depr(3y)208.23%
Cap/Depr(5y)184.13%
Cap/Sales(3y)30.92%
Cap/Sales(5y)25.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%72.86%
EPS Next Y40.38%
EPS Next 2Y36.58%
EPS Next 3Y34.16%
EPS Next 5Y41.4%
Revenue 1Y (TTM)10.47%
Revenue growth 3Y-4.93%
Revenue growth 5Y14.5%
Sales Q2Q%29.59%
Revenue Next Year24.73%
Revenue Next 2Y21.78%
Revenue Next 3Y20.49%
Revenue Next 5Y18.84%
EBIT growth 1Y43.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year209.06%
EBIT Next 3Y63.26%
EBIT Next 5YN/A
FCF growth 1Y-43.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y471.69%
OCF growth 3YN/A
OCF growth 5YN/A