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KINGSOFT CLOUD HOLDINGS-ADR (KC) Stock Fundamental Analysis

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

18.8  +0.35 (+1.9%)

After market: 18.92 +0.12 (+0.64%)

Fundamental Rating

2

Taking everything into account, KC scores 2 out of 10 in our fundamental rating. 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. While showing a medium growth rate, KC is valued expensive at the moment.


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 negative operating cash flow in the past year.
In the past 5 years KC always reported negative net income.
KC had negative operating cash flow in 4 of the past 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 0 -500M -1B -1.5B -2B -2.5B

1.2 Ratios

KC has a Return On Assets of -10.83%. This is in the lower half of the industry: KC underperforms 73.08% of its industry peers.
The Return On Equity of KC (-28.04%) is worse than 65.38% of its industry peers.
Industry RankSector Rank
ROA -10.83%
ROE -28.04%
ROIC N/A
ROA(3y)-12.44%
ROA(5y)-12.96%
ROE(3y)-25.59%
ROE(5y)-24.3%
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 -10 -20 -30 -40

1.3 Margins

KC has a Gross Margin of 15.12%. This is amonst the worse of the industry: KC underperforms 87.18% of its industry peers.
In the last couple of years the Gross Margin of KC has grown nicely.
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 15.12%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y30.5%
GM growth 5YN/A
KC Yearly Profit, Operating, Gross MarginsKC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80 -100

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1

2. Health

2.1 Basic Checks

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

2.2 Solvency

Based on the Altman-Z score of 0.87, we must say that KC is in the distress zone and has some risk of bankruptcy.
KC has a Altman-Z score of 0.87. This is in the lower half of the industry: KC underperforms 69.23% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that KC is not too dependend on debt financing.
The Debt to Equity ratio of KC (0.41) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Altman-Z 0.87
ROIC/WACCN/A
WACC9.58%
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 0 2B -2B 4B 6B 8B 10B

2.3 Liquidity

KC has a Current Ratio of 0.84. This is a bad value and indicates that KC is not financially healthy enough and could expect problems in meeting its short term obligations.
KC has a worse Current ratio (0.84) than 84.62% of its industry peers.
KC has a Quick Ratio of 0.84. This is a bad value and indicates that KC is not financially healthy enough and could expect problems in meeting its short term obligations.
KC has a worse Quick ratio (0.84) than 84.62% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.84
KC Yearly Current Assets VS Current LiabilitesKC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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3. Growth

3.1 Past

KC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.35%, which is quite impressive.
Looking at the last year, KC shows a decrease in Revenue. The Revenue has decreased by -2.42% in the last year.
KC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.01% yearly.
EPS 1Y (TTM)55.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.14%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y2.33%
Revenue growth 5Y26.01%
Sales Q2Q%16.02%

3.2 Future

The Earnings Per Share is expected to grow by 20.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, KC will show a very strong growth in Revenue. The Revenue will grow by 23.01% on average per year.
EPS Next Y30.35%
EPS Next 2Y23.66%
EPS Next 3Y20.72%
EPS Next 5YN/A
Revenue Next Year7.92%
Revenue Next 2Y10.83%
Revenue Next 3Y11.84%
Revenue Next 5Y23.01%

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 stable.
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 10B 20B 30B
KC Yearly EPS VS EstimatesKC Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 -2 -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 20 -20 40 -40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
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

A more expensive valuation may be justified as KC's earnings are expected to grow with 20.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.66%
EPS Next 3Y20.72%

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0

5. Dividend

5.1 Amount

No dividends for KC!.
Industry RankSector Rank
Dividend Yield N/A

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KINGSOFT CLOUD HOLDINGS-ADR

NASDAQ:KC (2/25/2025, 7:04:29 PM)

After market: 18.92 +0.12 (+0.64%)

18.8

+0.35 (+1.9%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-19 2024-11-19/bmo
Earnings (Next)03-20 2025-03-20/amc
Inst Owners7.31%
Inst Owner Change-89.06%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.46B
Analysts82.35
Price Target12.25 (-34.84%)
Short Float %66.89%
Short Ratio2.81
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)53.31%
Min EPS beat(2)14.01%
Max EPS beat(2)92.62%
EPS beat(4)3
Avg EPS beat(4)29.1%
Min EPS beat(4)-4.51%
Max EPS beat(4)92.62%
EPS beat(8)4
Avg EPS beat(8)8.6%
EPS beat(12)5
Avg EPS beat(12)4.12%
EPS beat(16)6
Avg EPS beat(16)2.72%
Revenue beat(2)1
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)0.15%
Revenue beat(4)1
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-10.06%
Max Revenue beat(4)0.15%
Revenue beat(8)1
Avg Revenue beat(8)-6.13%
Revenue beat(12)2
Avg Revenue beat(12)-5.35%
Revenue beat(16)2
Avg Revenue beat(16)-5.03%
PT rev (1m)70.39%
PT rev (3m)185.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.21%
EPS NY rev (3m)6.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)2.66%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 4.61
P/FCF N/A
P/OCF N/A
P/B 5.09
P/tB 32.28
EV/EBITDA N/A
EPS(TTM)-0.41
EYN/A
EPS(NY)-0.36
Fwd EYN/A
FCF(TTM)-1.14
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS4.07
BVpS3.69
TBVpS0.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -10.83%
ROE -28.04%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 15.12%
FCFM N/A
ROA(3y)-12.44%
ROA(5y)-12.96%
ROE(3y)-25.59%
ROE(5y)-24.3%
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 3Y30.5%
GM growth 5YN/A
F-Score3
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.84
Quick Ratio 0.84
Altman-Z 0.87
F-Score3
WACC9.58%
ROIC/WACCN/A
Cap/Depr(3y)139.68%
Cap/Depr(5y)158.88%
Cap/Sales(3y)17.86%
Cap/Sales(5y)20.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)55.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%26.14%
EPS Next Y30.35%
EPS Next 2Y23.66%
EPS Next 3Y20.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y2.33%
Revenue growth 5Y26.01%
Sales Q2Q%16.02%
Revenue Next Year7.92%
Revenue Next 2Y10.83%
Revenue Next 3Y11.84%
Revenue Next 5Y23.01%
EBIT growth 1Y36.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year133.03%
EBIT Next 3Y43.79%
EBIT Next 5YN/A
FCF growth 1Y-752.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y42.28%
OCF growth 3YN/A
OCF growth 5YN/A