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

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

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

As a value investor, I look first at the numbers and then at what I am paying. Cheetah Mobile sells internet antivirus, wallpaper and AI-related services, but the financial picture is troubled. At the 2026-10-13 close of $2.52, FairStock calculates a price-to-book of 0.34 and a P/E of -1.59, reflecting trailing EPS of -$1.58. In the second quarter of 2026, the latest reported quarter, revenue was $266.1M but net income was -$94.9M and the net margin was -35.67%. That is not a business compounding owner earnings; it is a business burning them. True, the supplied figures list revenue growth of 30.27% and profit growth of 48.00%, and the balance sheet carries no debt with D/E of 0.00. But FairStock calculations show return on equity of -14.57% and return on capital employed of -2.05%, so capital is not earning a positive return. A Piotroski F-Score of 1/9 and Altman Z-Score of -0.26 are red flags, not margins of safety. The 0.34 price-to-book may look cheap, but if losses persist book value can shrink, making today's discount illusory. The market cap is only $171.9M, beta is 1.87, and the 52-week range is $2.37-$9.00, showing severe volatility and a broken price trend. FairStock's score of 64/100 is not enough to offset the weak quality. Without a durable moat, consistent profits, and a clearer path to positive cash generation, this remains a speculative situation rather than a Graham-style bargain.

In plain English: Cheetah Mobile provides internet services such as anti-virus and wallpaper apps, plus AI and other offerings. The business is currently losing money, with weak financial health signs, though revenue has grown recently. The share price looks low compared with the company's accounting book value, but because it is unprofitable, the price is hard to call a safe 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