TH International Limited Ordinary shares (THCH)

FairStock Score: 22/100 — RISKY

Key Financials

AI Analysis

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

As a Buffett and Graham style investor, I start with the business and owner earnings. TH International operates Tim Hortons coffee shops in Mainland China, Hong Kong, and Macau. The brand is recognizable, but the reported economics are punishing. In the second quarter of 2026, revenue was $273.4M and net income was -$97.5M, a -35.65% margin. Trailing free cash flow was -$66.5M, and FairStock's FCF yield is -96.6%, meaning the company consumed cash roughly equal to its entire $68.8M market cap over the period. At the 2026-10-13 close of $1.16, FairStock's P/E is -0.52, ROCE is -13.49%, and Altman Z-score is -5.29, which points to financial distress. The Piotroski F-score of 6/9 is a small positive, and beta of 0.52 suggests the shares have not been volatile, but neither offsets negative owner earnings. A moat requires durable pricing power and low capital intensity; here, competition and cash burn suggest the opposite. The Lynch category is none because there are only 0 years of filed results, so there is no multi-year record to judge. The FairStock Score of 22/100 confirms the numbers are weak. Graham would ask for a margin of safety, but with no P/B, no ROE, no D/E, and negative earnings, there is little tangible value to anchor. Growth could improve if losses narrow, but the latest quarter shows a business still far from self-funding. I would need evidence of positive free cash flow and stable revenue before calling this anything but speculative.

In plain English: TH International runs and franchises Tim Hortons coffee shops in Mainland China, Hong Kong, and Macau. In the latest reported quarter, the second quarter of 2026, it had $273.4 million of revenue but lost $97.5 million, and the business used more cash than it generated. At $1.16 a share, the company is worth $68.8 million, and because it is losing money, the price does not look supported by current profits.

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