Aurora Mobile Limited American Depositary Shares (JG)

FairStock Score: 43/100 — MIXED

Key Financials

Strengths

• Generates $60 million in annual free cash flow (144.1% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.16, providing financial flexibility

Concerns

• Trades significantly above Graham Number ($1) with negative 1048% margin of safety—limited downside protection
• Altman Z-Score of -3.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Aurora Mobile Limited American Depositary Shares is a micro-cap technology company valued at $42 million. Revenue stands at $375 million. From a quality standpoint, Aurora shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of -3.2 warrants caution. On valuation, the stock is commanding a steep 350.0x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 12.9% and profit growth of 382.3%. Our composite FairStock Score of 43/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $60 million in annual free cash flow (144.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 350x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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