Cheetah Stock Story


USD 0.73  0.03  4.29%   

While many traders are getting carried away by overanalyzing communication services space, it is reasonable to summarize Cheetah Mobile. What exactly are Cheetah Mobile shareholders getting in July? Is the company valuation sustainable? Here I will cover a perspective on valuation of Cheetah to give you a better outlook on taking a position in this stock.
Published over a month ago
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Cheetah Mobile Sentiment by News Outlets

benzinga news
prnewswire News
businessinsider News

What is our July take on Cheetah Mobile (NYSE:CMCM) valuation?

Debt to Equity Ratio is expected to hike to 0.54 this year, although the value of Average Equity will most likely fall to nearly 4.4 B.
We provide trade advice to complement the prevailing expert consensus on Cheetah Mobile. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Cheetah Mobile using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cheetah Mobile based exclusively on its fundamental and basic technical indicators. By analyzing Cheetah Mobile's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cheetah Mobile's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cheetah Mobile. We calculate exposure to Cheetah Mobile's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cheetah Mobile's related companies.

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.

Cheetah Mobile Investment Alerts

Cheetah investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Cheetah Mobile performance across your portfolios.Please check all investment alerts for Cheetah

Cheetah Mobile Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Cheetah value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cheetah Mobile competition to find correlations between indicators driving the intrinsic value of Cheetah.

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?

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.
 2019 2020 2021 2022 (projected)
Revenues USD512.53 M237.41 M273.02 M372.58 M
Revenues3.59 B1.55 B1.79 B2.47 B

Margins Breakdown

Cheetah profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Cheetah Mobile itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Cheetah Mobile profit margins.
Profit Margin
EBITDA Margin0.5
Gross Margin0.62
Profit Margin0.33

Cheetah Mobile Average Equity is increasing over the last 8 years. Also, Cheetah Mobile Earnings before Tax is relatively stable at the moment.

Will Cheetah Mobile growth be viable after the hike?

New coefficient of variation indicator falls down to -4775.29. Possible price surge? Cheetah Mobile exhibits very low volatility with skewness of 0.34 and kurtosis of 4.22. However, we advise investors to further study Cheetah Mobile technical indicators to make sure all market info is available and is reliable. 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.

The Bottom Line

While 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. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor exit any shares of Cheetah Mobile at this time. The Cheetah Mobile risk-reward trade off is not appealing enough to do any trading. 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

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.

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