Kingsoft Corporation Limited Fundamental Analysis
Kingsoft Corporation Limited (KSFTF) shows moderate financial fundamentals with a PE ratio of 9.40, profit margin of 28.73%, and ROE of 10.80%. The company generates $9.5B in annual revenue with weak year-over-year growth of -6.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KSFTF's fundamental strength across five key dimensions:
Efficiency Score
WeakKSFTF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKSFTF trades at attractive valuation levels.
Growth Score
ModerateKSFTF shows steady but slowing expansion.
Financial Health Score
ExcellentKSFTF maintains a strong and stable balance sheet.
Profitability Score
ModerateKSFTF maintains healthy but balanced margins.
Key Financial Metrics
Is KSFTF Expensive or Cheap?
P/E Ratio
KSFTF trades at 9.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KSFTF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Kingsoft Corporation Limited at 0.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 23.58 times EBITDA. This signals the market has high growth expectations.
How Well Does KSFTF Make Money?
Net Profit Margin
For every $100 in sales, Kingsoft Corporation Limited keeps $28.73 as profit after all expenses.
Operating Margin
Core operations generate 13.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.80 in profit for every $100 of shareholder equity.
ROA
Kingsoft Corporation Limited generates $6.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kingsoft Corporation Limited generates strong operating cash flow of $2.45B, reflecting robust business health.
Free Cash Flow
Kingsoft Corporation Limited generates strong free cash flow of $2.24B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.65 in free cash annually.
FCF Yield
KSFTF converts 8.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How KSFTF Stacks Against Its Sector Peers
| Metric | KSFTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.40 | 37.32 | Better (Cheaper) |
| ROE | 10.80% | 993.00% | Weak |
| Net Margin | 28.73% | 5975589423.00% | Weak |
| Debt/Equity | 0.01 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 5.83 | 116.24 | Strong Liquidity |
| ROA | 6.74% | -297552.00% (disorted) | Weak |
KSFTF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kingsoft Corporation Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.55%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-80.22%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-15.01%
Industry Style: Growth, Innovation, High Beta
Declining