NYSE:CMCM

Stock Analysis Report

Executive Summary

Cheetah Mobile Inc. operates as a mobile Internet company worldwide.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Cheetah Mobile's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

CMCM

-4.4%

US Software

0.07%

US Market


1 Year Return

-58.9%

CMCM

19.3%

US Software

8.9%

US Market

Return vs Industry: CMCM underperformed the US Software industry which returned 19.3% over the past year.

Return vs Market: CMCM underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CMCMIndustryMarket
7 Day-2.0%-4.4%0.07%
30 Day-1.2%-4.4%-0.3%
90 Day-2.3%-9.3%-1.6%
1 Year-53.7%-58.9%21.1%19.3%11.3%8.9%
3 Year-66.6%-70.4%108.2%99.8%46.3%36.8%
5 Year-79.6%-81.9%157.9%139.3%62.1%44.3%

Price Volatility Vs. Market

How volatile is Cheetah Mobile's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cheetah Mobile undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMCM ($3.41) is trading below our estimate of fair value ($8.84)

Significantly Below Fair Value: CMCM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CMCM is good value based on its PE Ratio (3.6x) compared to the Software industry average (45x).

PE vs Market: CMCM is good value based on its PE Ratio (3.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CMCM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CMCM is good value based on its PB Ratio (0.6x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is Cheetah Mobile forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMCM's earnings are forecast to decline over the next 3 years (-15% per year).

Earnings vs Market: CMCM's earnings are forecast to decline over the next 3 years (-15% per year).

High Growth Earnings: CMCM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CMCM's revenue (7.4% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: CMCM's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMCM's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Cheetah Mobile performed over the past 5 years?

58.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CMCM's earnings have grown significantly by 58.7% per year over the past 5 years.

Accelerating Growth: CMCM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CMCM had negative earnings growth (-36.2%) over the past year, making it difficult to compare to the Software industry average (19.1%).


Return on Equity

High ROE: CMCM's Return on Equity (14.6%) is considered low.


Return on Assets

ROA vs Industry: CMCM has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: CMCM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cheetah Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: CMCM's short term assets (CN¥5.3B) exceeds its short term liabilities (CN¥1.7B)

Long Term Liabilities: CMCM's short term assets (5.3B) exceeds its long term liabilities (396.5M)


Debt to Equity History and Analysis

Debt Level: CMCM is debt free.

Reducing Debt: CMCM had no debt 5 years ago.

Debt Coverage: CMCM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CMCM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CMCM has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CMCM's debt is covered by short term assets.


Next Steps

Dividend

What is Cheetah Mobile's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CMCM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CMCM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CMCM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CMCM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CMCM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Cheetah Mobile's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Sheng Fu (41yo)

8.9yrs

Tenure

0

Mr. Sheng Fu serves as Founding Managing Partner at Purple Bull Startups. He has been the Chief Executive Officer at Cheetah Mobile Inc. since November 2010. Mr. Fu serves as the Chief Executive Officer at ...


Management Age and Tenure

1.8yrs

Average Tenure

41yo

Average Age

Experienced Management: CMCM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

44yo

Average Age

Experienced Board: CMCM's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jun Lei (50yo)

    • Tenure: 1.6yrs
  • Andy Yeung (46yo)

    External Advisor

    • Tenure: 2.5yrs
  • Sheng Fu (41yo)

    Chairman of the Board & CEO

    • Tenure: 8.9yrs
  • Ming Xu (40yo)

    Consultant

    • Tenure: 1.3yrs
  • Jie Xiao (44yo)

    Senior VP & Director

    • Tenure: 1.6yrs
  • Vincent Jiang (45yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
  • Pin Zhou (41yo)

    Senior VP & Director

    • Tenure: 1.6yrs
  • Yuki Yandan He (36yo)

    Senior Vice President

    • Tenure: 1.8yrs
  • Edward Sun (35yo)

    Senior Vice President

    • Tenure: 1.8yrs
  • Helen Zhu

    IR Director

    • Tenure: 0yrs

Board Members

  • Michael Yao (43yo)

    Independent Director

    • Tenure: 1.8yrs
  • Tao Zou (44yo)

    Director

    • Tenure: 2.8yrs
  • Ning Zhang (45yo)

    Independent Director

    • Tenure: 1.8yrs
  • Sheng Fu (41yo)

    Chairman of the Board & CEO

    • Tenure: 8.9yrs
  • Yi Ma (46yo)

    Independent Director

    • Tenure: 1.8yrs
  • Richard Ji (53yo)

    Independent Director

    • Tenure: 5.4yrs
  • Jie Xiao (44yo)

    Senior VP & Director

    • Tenure: 1.6yrs
  • Tianyang Zhao (38yo)

    Independent Director

    • Tenure: 1.8yrs
  • Pin Zhou (41yo)

    Senior VP & Director

    • Tenure: 1.6yrs

Company Information

Cheetah Mobile Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cheetah Mobile Inc.
  • Ticker: CMCM
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$465.557m
  • Shares outstanding: 136.53m
  • Website: https://www.cmcm.com

Number of Employees


Location

  • Cheetah Mobile Inc.
  • Building No. 8
  • Hui Tong Times Square
  • Beijing
  • 100123
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMCMNYSE (New York Stock Exchange)YesADR REPR 1 CL A ORDUSUSDMay 2014
0C9ADB (Deutsche Boerse AG)YesADR REPR 1 CL A ORDDEEURMay 2014

Biography

Cheetah Mobile Inc. operates as a mobile Internet company worldwide. The company’s utility products include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:22
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.