Cheetah Stock Story

CMCM

Stock

USD 0.74 0.01 1.33%

Macroaxis Story

Cheetah Mobile Asset Turnover is relatively stable at the moment as compared to the past year. The company's current value of Asset Turnover is estimated at 0.23. Current Ratio is expected to hike to 1.87 this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to nearly 618.6 M. While some of us are becoming more passionate about communication services space, it makes sense to summarize Cheetah Mobile in greater detail. We will evaluate why we are still optimistic in anticipation of a recovery. In this post, I will also go over some essential variables affecting Cheetah Mobile's products, and show how it may impact the company outlook for active traders this year.

Published over two months ago

View all stories for Cheetah Mobile | View All Stories

Is Cheetah Mobile overvalued?

The firm shows a Beta (market volatility) of 1.3369, which signifies a somewhat significant risk relative to the market. Let's try to break down what Cheetah's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Cheetah Mobile will likely underperform. Even though it is essential to pay attention to Cheetah Mobile historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Cheetah Mobile exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Cheetah Mobile has an expected return of -0.66%. Please be advised to confirm Cheetah Mobile potential upside, rate of daily change, and the relationship between the sortino ratio and skewness to decide if Cheetah Mobile performance from the past will be repeated at some point in the near future.

Watch out for price decline

Please consider monitoring Cheetah Mobile on a daily basis if you are holding a position in it. Cheetah Mobile is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Cheetah Mobile stock to be traded above the $1 level to remain listed. If Cheetah Mobile stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Cheetah Mobile's Liquidity

Cheetah Mobile financial leverage refers to using borrowed capital as a funding source to finance Cheetah Mobile ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cheetah Mobile financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cheetah Mobile's total debt and its cash.

How does Cheetah utilize its cash?

To perform a cash flow analysis of Cheetah Mobile, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cheetah Mobile is receiving and how much cash it distributes out in a given period. The Cheetah Mobile cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Cheetah Mobile Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 158.47 Million

Is Cheetah Mobile valued accurately by the market?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cheetah Mobile has an asset utilization ratio of 114.5 percent. This denotes that the company is making $1.14 for each dollar of assets. An increasing asset utilization means that Cheetah Mobile is more efficient with each dollar of assets it utilizes for everyday operations.

Will Cheetah pull down impact its fundamentals?

The value at risk is down to -8.05 as of today. Cheetah Mobile is displaying above-average volatility over the selected time horizon. Investors should scrutinize Cheetah Mobile independently to ensure intended market timing strategies are aligned with expectations about Cheetah Mobile volatility. Cheetah Mobile is a potential penny stock. Although Cheetah Mobile may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Cheetah Mobile. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Cheetah instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Conclusion on Cheetah Mobile

While many of the other players in the internet content & information industry are either recovering or due for a correction, Cheetah Mobile may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Cheetah valuation and our trade advice on Cheetah Mobile is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cheetah Mobile.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cheetah Mobile. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2022 Macroaxis LLC