Kingsoft Story

KC -- USA Stock

USD 61.00 2.12 3.60%

Macroaxis Story

Kingsoft Cloud Gross Margin is projected to increase slightly based on the last few years of reporting. The past year's Gross Margin was at 0.0023. The current year Gross Profit is expected to grow to about 9.6 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (409.2 M). 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 optimistic in anticipation of a recovery. Here I will also go over some basic indicators that Kingsoft Cloud investors should consider in February.

Published over a month ago

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Kingsoft Cloud (NASDAQ:KC) continues to rise

The company is overvalued at 49.69 per share with modest projections ahead. Kingsoft Cloud holds a performance score of 14 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of 0.2226, 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-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Kingsoft Cloud Holdings value at risk, and the relationship between the jensen alpha and semi variance to analyze future returns on Kingsoft Cloud Holdings.

How important is Kingsoft Cloud's Liquidity

Kingsoft Cloud financial leverage refers to using borrowed capital as a funding source to finance Kingsoft Cloud Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kingsoft Cloud 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 Kingsoft Cloud's total debt and its cash.

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)

What did Kingsoft Cloud file with SEC?

The SEC filings are financial statements or other formal documents of Kingsoft Cloud Holdings that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.

Please check here for more information.

Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Kingsoft shareholders may or may not be submitted as SEC does not always require it.

	5th of February 2021 Unclassified Corporate Event	View
	18th of November 2020 Other Events	View

Another Deeper Perspective

Kingsoft Cloud Holdings holds a total of 218.02 Million outstanding shares. Roughly 78.0 % of Kingsoft Cloud outstanding shares are held by regular investors with 1.62 pct. owned by insiders and only 20.62 % by institutional investors. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

	2018	2019	2020	2021 (projected)
Revenues USD	321.01 M	565.19 M	649.97 M	549.17 M
Revenues	2.22 B	3.96 B	4.55 B	3.82 B

Revenues USD Revenues

Ownership Breakdown

Retail Investors

77.76%

Institutions

20.62%

	Retail Investors	77.76
	Insiders	1.62
	Institutions	20.62

Kingsoft Cloud implied volatility may change after the rise

Current downside variance is at 14.88. 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.

Our Final Perspective on Kingsoft Cloud

Whereas other entities under the software?application industry are still a bit expensive, Kingsoft Cloud may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Kingsoft as the current risk-reward utility is not appealing enough. 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

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 Kingsoft Cloud Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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