Kuaishou Technology Fundamental Analysis
Kuaishou Technology Fundamental Analysis
Kuaishou Technology (KSHTY) shows strong financial fundamentals with a PE ratio of 9.53, profit margin of 12.19%, and ROE of 22.72%. The company generates $142.5B in annual revenue with strong year-over-year growth of 12.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.6/100 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 KSHTY's fundamental strength across five key dimensions:
Efficiency Score
WeakKSHTY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKSHTY trades at attractive valuation levels.
Growth Score
ExcellentKSHTY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentKSHTY maintains a strong and stable balance sheet.
Profitability Score
ModerateKSHTY maintains healthy but balanced margins.
Key Financial Metrics
Is KSHTY Expensive or Cheap?
P/E Ratio
KSHTY trades at 9.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KSHTY's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Kuaishou Technology at 2.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.64 times EBITDA. This is generally considered low.
How Well Does KSHTY Make Money?
Net Profit Margin
For every $100 in sales, Kuaishou Technology keeps $12.19 as profit after all expenses.
Operating Margin
Core operations generate 12.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.72 in profit for every $100 of shareholder equity.
ROA
Kuaishou Technology generates $9.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kuaishou Technology generates limited operating cash flow of $8.62B, signaling weaker underlying cash strength.
Free Cash Flow
Kuaishou Technology generates weak or negative free cash flow of $575.35M, restricting financial flexibility.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
KSHTY converts 0.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How KSHTY Stacks Against Its Sector Peers
| Metric | KSHTY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.53 | 23.79 | Better (Cheaper) |
| ROE | 22.72% | 987.00% | Weak |
| Net Margin | 12.19% | -68162.00% (disorted) | Strong |
| Debt/Equity | 0.47 | 3.29 | Strong (Low Leverage) |
| Current Ratio | 1.12 | 1.70 | Neutral |
| ROA | 9.26% | -5962.00% (disorted) | Weak |
KSHTY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kuaishou Technology's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
126.74%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
114.90%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
1001.35%
Industry Style: Growth, Technology, Streaming
High Growth