Kingsoft Cloud Holdings Limited American Depositary Shares (KC)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

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

As a Graham-style investor, I start with the business. Kingsoft Cloud sells cloud infrastructure, platform, software, and AI solutions to enterprises in China. It has scale—14,394 employees—and in the latest filed quarter, 2026-Q2, revenue was $3.1B while net income was negative $93.1M, a -3.03% margin. That tells me the company can win revenue but has not yet proven durable profitability. The balance sheet gives me pause: debt-to-equity is 1.24, ROE is -7.61%, ROCE is -0.80%, and the Altman Z-Score is -0.47, which points to financial fragility. On the positive side, trailing free cash flow is $1.4B, a 28.0% FCF yield against the $5.0B market cap—remarkable if sustainable. But EV/EBITDA of 780.07 and a negative P/E of -32.14 from the 2026-10-13 close show how distorted earnings-based valuation is. P/B is 2.11, not a bargain for a loss-making enterprise. The Piotroski F-Score of 6/9 is middling. Growth may be real, but the Lynch category is none because only 0 years of filed results are available and three are needed, so I lack a long track record. A wide moat is not evident in commodity-like cloud services. I would need consistent profits, lower leverage, and a clearer competitive advantage before calling this a value opportunity.

In plain English: Kingsoft Cloud provides cloud, AI, and business software services, mainly in China. The business is growing revenue but still losing money, and it carries meaningful debt with weak profitability, so the financial picture is not strong. At the recent close of $9.32, the price is difficult to call cheap because the losses and weak financial scores temper the large cash flow relative to its market value.

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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