Chagee Holdings Limited American Depositary Shares (CHA)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Chagee as a tea-shop operator and franchisor built around the CHAGEE brand across China, Malaysia, Singapore, Thailand, Indonesia, the Philippines, Vietnam, and the United States. In fiscal Q2 2026, revenue was $3.4B, net income was $467.3M, and the net margin was 13.68%, so the business is profitable. The supplied growth figures show revenue growth of 4.52% and profit growth of -33.66%, though the data do not name a period; either way, the profit direction is a warning. The balance sheet looks reasonably conservative with debt-to-equity of 0.19, and return on equity is 16.16%, though return on capital employed is only 8.01%. Free cash flow is the standout: $772.4M trailing twelve months, a 38.1% FCF yield on the $2.0B market cap at the 2026-10-13 close. Quality checks are mixed: Piotroski F-Score 2/9, Altman Z-Score 1.93, and EV/EBITDA of -1.93. At the same close, FairStock calculations show P/E 12.27 and P/B 1.96. The Graham Number is $12.12, so at $12.52 the margin of safety is -3.30%, meaning the price is slightly above that conservative benchmark. The 52-week range of $8.98 to $17.66 shows volatility. There is also no Lynch category because the data show only 0 years of filed results, versus the three needed. My conclusion: a profitable, cash-generative, low-debt tea business, but its short history and falling profits keep it from being a clear Graham bargain.

In plain English: Chagee runs tea shops and franchises the CHAGEE brand in China and several other countries. The latest quarter was profitable, but profits have been falling and some financial health checks are weak. At $12.52, the stock looks about fair compared with its earnings and accounting value, not a clear bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer