NYSE:CMCM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: CMCM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

CMCM

2.3%

US Software

1.7%

US Market


1 Year Return

-40.9%

CMCM

39.4%

US Software

23.6%

US Market

Return vs Industry: CMCM underperformed the US Software industry which returned 39.8% over the past year.

Return vs Market: CMCM underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CMCMIndustryMarket
7 Day-2.8%2.3%1.7%
30 Day5.7%6.5%3.5%
90 Day13.5%19.7%11.7%
1 Year-33.4%-40.9%40.6%39.4%26.2%23.6%
3 Year-57.3%-62.1%144.8%135.0%53.2%43.3%
5 Year-77.6%-80.1%199.4%178.0%75.5%56.1%

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?

24.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMCM ($3.99) is trading below our estimate of fair value ($5.1)

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 (3.1x) compared to the Software industry average (47.3x).

PE vs Market: CMCM is good value based on its PE Ratio (3.1x) compared to the US market (18.9x).


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 (0.7x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is Cheetah Mobile forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-59.6%

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 (-59.6% per year).

Earnings vs Market: CMCM's earnings are forecast to decline over the next 3 years (-59.6% per year).

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

Revenue vs Market: CMCM's revenue is expected to decline over the next 3 years (-5.4% per year).

High Growth Revenue: CMCM's revenue is forecast to decline over the next 3 years (-5.4% 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 (4.8%).


Next Steps

Past Performance

How has Cheetah Mobile performed over the past 5 years?

55.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMCM has a high level of non-cash earnings.

Growing Profit Margin: CMCM's current net profit margins (27.6%) are lower than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: CMCM's earnings have grown significantly by 55.6% 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 (-18%) over the past year, making it difficult to compare to the Software industry average (20.8%).


Return on Equity

High ROE: CMCM's Return on Equity (21.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cheetah Mobile's financial position?


Financial Position Analysis

Short Term Liabilities: CMCM's short term assets (CN¥4.3B) exceed its short term liabilities (CN¥1.5B).

Long Term Liabilities: CMCM's short term assets (CN¥4.3B) exceed its long term liabilities (CN¥417.4M).


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%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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?

2.4yrs

Average management tenure


CEO

Sheng Fu (41yo)

9.2yrs

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

2.4yrs

Average Tenure

42.5yo

Average Age

Experienced Management: CMCM's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

44yo

Average Age

Experienced Board: CMCM's board of directors are not considered experienced ( 2 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jun Lei (50yo)

    • Tenure: 1.8yrs
  • Andy Yeung (46yo)

    External Advisor

    • Tenure: 2.8yrs
  • Sheng Fu (41yo)

    Chairman of the Board & CEO

    • Tenure: 9.2yrs
  • Ming Xu (40yo)

    Consultant

    • Tenure: 1.5yrs
  • Jie Xiao (44yo)

    Senior VP & Director

    • Tenure: 1.8yrs
  • Vincent Jiang (45yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Pin Zhou (41yo)

    Senior VP & Director

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

    Senior Vice President

    • Tenure: 2yrs
  • Helen Zhu

    IR Director


    Board Members

    • Michael Yao (43yo)

      Independent Director

      • Tenure: 2.1yrs
    • Tao Zou (44yo)

      Director

      • Tenure: 3.1yrs
    • Ning Zhang (45yo)

      Independent Director

      • Tenure: 2yrs
    • Sheng Fu (41yo)

      Chairman of the Board & CEO

      • Tenure: 9.2yrs
    • Yi Ma (46yo)

      Independent Director

      • Tenure: 2yrs
    • Richard Ji (53yo)

      Independent Director

      • Tenure: 5.7yrs
    • Jie Xiao (44yo)

      Senior VP & Director

      • Tenure: 1.8yrs
    • Tianyang Zhao (38yo)

      Independent Director

      • Tenure: 2yrs
    • Pin Zhou (41yo)

      Senior VP & Director

      • Tenure: 1.8yrs

    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$539.118m
    • Shares outstanding: 139.31m
    • 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 devices; Security Master, an anti-virus and security application for mobile devices; Battery Doctor, a power optimization tool for mobile devices; Cheetah Browser, a Web browser for PCs and mobile devices; CM Browser, a mobile browser to protect users from malicious threats; and CM Launcher, which provides personalized experience in using smart phones. Its utility products also comprise Cheetah Keyboard, an artificial intelligence (AI)-enabled application; Photo Grid, a photo collage application for mobile devices; CM Locker, a lock screen with notifications and security; Duba Anti-virus, an Internet security application for PC and mobile devices; and SafeWallet, a mobile digital wallet. In addition, the company offers Live.me, a live video streaming application; and Cheez, an interactive short video application. Further, it provides mobile games comprising Piano Tiles 2, Rolling Sky, Dancing Line, Arrow.io, Tap Tap Fish, Tap Tap Dash, and Bricks n Balls; and Cheetah Voicepod, an AI-based smart speaker; Cheetah Translator, a portable hand-held voice translation device; and Cheetah GreetBot, a reception robot. Additionally, the company offers mobile advertising publisher services; duba.com personal start page that aggregates online resources and provides users access to their online destinations; and cloud-based data analytics engines. It serves direct advertisers that include mobile application developers, mobile game developers, and e-commerce companies, as well as search engines and partnering mobile advertising networks. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is headquartered in Beijing, the People’s Republic of China. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 00:26
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    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.