Xunlei Limited American Depositary Shares (XNET)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I approach Xunlei as a Graham-style bargain hunter: the market cap is $397.9 million, and at the 2026-10-13 close of $5.00, FairStock calculates a P/B of 0.32, a P/E of 0.37, and a Graham Number of $30.65, implying an 83.69% margin of safety. Those numbers scream cheap. But cheapness without business quality can be a trap. The company operates an internet platform for digital media content in China, built on cloud technology, with products such as Xunlei Accelerator. In the latest quarter shown, fiscal Q2 2026, revenue was $102.1 million but net income was negative $218.4 million, a -213.91% margin. That loss overwhelms the top line. FairStock calculations show ROE of -8.93%, ROCE of 0.43%, a Piotroski F-Score of 2/9, and an Altman Z-Score of 2.05. The balance sheet looks conservative with D/E of 0.06, but a low-debt balance sheet does not fix operating losses. I see no evidence of a durable moat in these figures; the Lynch category is none because only 0 years of filed results are available, versus the three years the rule needs. The FairStock Score of 85/100 may reflect asset value, but I would want to see the loss narrow, returns improve, and the accounting value prove real. At $5.00, the price may be discounting a turnaround that is not yet visible.

In plain English: Xunlei runs an internet platform in China for digital media content, using cloud technology to help users download, store, and watch media. The latest figures show a big net loss and weak business quality, so the company looks troubled. The stock price looks very cheap compared with its accounting values, but that cheapness may not be trustworthy while the business is losing money.

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