Noah Holdings Limited American Depositary Shares (NOAH)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I am looking at Noah Holdings, an asset and wealth manager serving high-net-worth clients in mainland China, Hong Kong, and overseas. At the close on 2026-10-13, the ADS trades at $7.48. The statistical cheapness is striking: FairStock calculates a P/E of 5.94, P/B of 0.37, Graham Number of $27.76, and a 73.05% margin of safety. The dividend yield is 8.08%, and debt is almost nonexistent with D/E of 0.01. In the second quarter of 2026, Noah reported $619.9M of revenue and $232.2M of net income, a 37.45% margin. That is a real, profitable business, not a shell. But Graham taught me to ask why Mr. Market is so pessimistic. Revenue is shrinking—the provided growth figure is -7.43%—while profit growth of +62.55% looks suspiciously strong and may not be durable. ROE is only 6.15%, ROCE 4.71%, and the Piotroski F-Score is 3/9 with an Altman Z-Score of 1.50; those are not signs of a fortress. The Lynch screen has no category because there are zero years of filed results against the three needed. The EV/EBITDA of -3.85 is odd and needs understanding. Noah’s client relationships and overseas segments could be a modest moat, but asset management is cyclical and regulated. At 0.37 times book and a large discount to Graham Number, the price already discounts much bad news. If revenue stabilizes and the high margin persists, the shares could re-rate; if not, the low multiple and high yield may be a value trap. I would demand more evidence of durable earnings before calling it a bargain.

In plain English: Noah Holdings helps wealthy people and companies in China, Hong Kong and other places invest and manage their money. In the second quarter of 2026, it earned a large profit for its size and carries almost no debt, but overall sales have been shrinking. Based on its stated profits and accounting value, the shares look cheap, though the business quality signals are mixed.

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