Kingsoft Story

<div class='circular--portrait' style='background:#4E8BFC;color: #ffffff;font-size:4em;'>KC</div>
KC -- USA Stock  

USD 57.46  3.12  5.15%

While many traders are getting carried away by overanalyzing technology space, it is reasonable to go over Kingsoft Cloud Holdings. We will evaluate why we are still confident in anticipation of a recovery. What is the firm valuation so far in 2021? We are going to cover Kingsoft Cloud Holdings perspective on valuation to give investors a better transparency on taking a position in it.
Published over a month ago
View all stories for Kingsoft Cloud | View All Stories
Is Kingsoft Cloud (NASDAQ:KC) ready for a correction?
The company reports 182.18 M of total liabilities with total debt to equity ratio (D/E) of 0.08, which may suggest Kingsoft Cloud is not taking enough advantage from financial leverage. Kingsoft Cloud Holdings has a current ratio of 2.8, indicating that it is in good position to pay out its debt commitments in time. Kingsoft Cloud holds a performance score of 14 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of 0.2514, which conveys not very significant fluctuations relative to the market. Let's try to break down what Kingsoft's beta means in this case. As returns on the market increase, Kingsoft Cloud returns are expected to increase less than the market. However, during the bear market, the loss on holding Kingsoft Cloud will be expected to be smaller as well. Although it is vital to follow Kingsoft Cloud Holdings price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. Our philosophy towards estimating future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Kingsoft Cloud expected return of 1.02 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Kingsoft Cloud Holdings semi variance, rate of daily change, and the relationship between the value at risk and kurtosis to analyze future returns on Kingsoft Cloud Holdings.
We determine the current worth of Kingsoft Cloud Holdings 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 Kingsoft Cloud Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Kingsoft Cloud'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 Kingsoft Cloud'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 Kingsoft Cloud. We calculate exposure to Kingsoft Cloud's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Kingsoft Cloud's related companies.

Kingsoft Cloud Holdings Investment Alerts

Kingsoft 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 Kingsoft Cloud Holdings performance across your portfolios.Please check all investment alerts for Kingsoft

Are Kingsoft Cloud Earnings Expected to grow?

The future earnings power of Kingsoft Cloud involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Kingsoft Cloud factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Kingsoft Cloud stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Kingsoft expected earnings.

How Kingsoft utilizes its cash?

To perform a cash flow analysis of Kingsoft Cloud, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Kingsoft Cloud is receiving and how much cash it distributes out in a given period. The Kingsoft Cloud cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Kingsoft Cloud Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (395.22 Million)

Another Deeper Perspective

The current price rise of Kingsoft Cloud Holdings may raise some interest from investors. The stock closed today at a share price of 53.81 on 3,537,100 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.94. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Kingsoft Cloud Holdings partners.
 2010 2019 2020 2021 (projected)
Current Ratio3.31.721.541.87
Book Value per Share77.5659.6553.6857.14

Margins Breakdown

Kingsoft profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Kingsoft Cloud itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Kingsoft Cloud profit margins.
EBITDA Margin(0.1)
Gross Margin0.002482
Profit Margin(0.36)


Kingsoft Cloud Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment. Further, Kingsoft Cloud Earnings per Diluted Share is somewhat stable at the moment. Kingsoft Cloud Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment. Further, Kingsoft Cloud Earnings per Diluted Share is increasing over the last 5 years. The previous year's value of Kingsoft Cloud Earnings per Diluted Share was -24.38.

Are Kingsoft Cloud technical ratios showing a bounce back?

The sortino ratio is down to 0.12 as of today. Kingsoft Cloud Holdings shows above-average downside volatility for the selected time horizon. We advise investors to inspect Kingsoft Cloud Holdings further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Kingsoft Cloud future alpha.

The Bottom Line

Whereas some companies within the software?application industry are still a little expensive, even after the recent corrections, Kingsoft Cloud may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor short any shares of Kingsoft Cloud at this time. The Kingsoft Cloud Holdings 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 Kingsoft Cloud.

About Contributor

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 Kingsoft Cloud Holdings. 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