Hesai Group American Depositary Share each ADS represents one Class B ordinary share (HSAI)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

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

I look for durable businesses that earn high returns on capital and can be bought with a margin of safety. Hesai makes LiDAR for advanced driver assistance and autonomous vehicles. In the second quarter of fiscal 2026, revenue was $860.8 million and net income $70.5 million, an 8.20% net margin. That is a real business with low debt: FairStock’s debt-to-equity is 0.08. But the quality is not yet proven. FairStock calculations show ROE of 7.49% and ROCE of -0.13%, so capital returns are weak, and its Piotroski F-Score is 6/9 and Altman Z-Score 2.06, middling rather than fortress-like. The growth data appear explosive, yet FairStock’s Lynch category is none because there are only 0 year(s) of filed results, versus the 3 needed. That short record matters to a Graham-style investor. Valuation is the rub. At the 2026-10-13 close of $14.46, FairStock’s P/E is 28.92 and P/B is 1.70. Its Graham Number is $8.95, giving a margin of safety of -61.56%, meaning the price is well above that conservative value. On the other hand, FairStock’s PEG is 0.06 and EV/EBITDA is 4.72, which look attractive if growth persists. The FairStock Score of 39/100 and beta of 1.36 add caution. LiDAR is competitive, cyclical, and technology-driven; scale and design wins may help, but pricing pressure and obsolescence are real. For me, consistent profits, positive ROCE, and a longer filed record would be needed before this looks like a bargain.

In plain English: Hesai makes laser-based sensors called LiDAR that help cars and autonomous systems see the road. The company is growing and carries little debt, but its profits and returns are still modest and its public record is short. At the recent price, the stock looks expensive compared with the value suggested by its accounting numbers.

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