Cheetah Stock Story

CMCM

Stock

USD 0.78 0.04 5.41%

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 many traders today are more concerned about the preservation of capital over market returns, Cheetah Mobile could be one exception. What exactly are Cheetah Mobile shareholders getting in July? Here I will also expose some primary fundamental factors affecting Cheetah Mobile's services, and outline how it will impact the outlook for investors this year.

Published over two months ago

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Is Cheetah Mobile (NYSE:CMCM) ripping up stakeholders?

This firm reported the previous year's revenue of 871.5 M. Net Income was 85.67 M with profit before overhead, payroll, taxes, and interest of 1.08 B.

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.

Our Cheetah analysis denotes possible reversion in July

The mean deviation is down to 4.43 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 Final Take On Cheetah Mobile

While some other entities in the internet content & information industry are either recovering or due for a correction, Cheetah may not be as strong as the others in terms of longer-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

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. 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 Vlad Skutelnik do not own shares of Cheetah Mobile. Please refer to our Terms of Use for any information regarding our disclosure principles.

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