Cheetah Mobile Inc. American Depositary Shares each representing fifty (50) Class A Ordinary Shares (CMCM)

FairStock Score: 64/100 — STEADY

Key Financials

Strengths

• Conservative balance sheet with debt-to-equity of just 0.03, providing financial flexibility
• Revenue growth of 49.6% demonstrates strong top-line momentum

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.1 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Cheetah Mobile Inc. American Depositary Shares each representing fifty (50) Class A Ordinary Shares is a micro-cap communication services company valued at $172 million. Revenue stands at $1.2 billion. From a quality standpoint, Cheetah shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.1 warrants caution. Growth dynamics show revenue growing at 49.6% and profit growth of 76.6%. Our composite FairStock Score of 64/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Cheetah's 50% revenue growth trajectory could accelerate as it captures additional market share in the communication services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer