Cheetah Mobile (CMCM) AI Stock Analysis

• Market Cap: $206.24M
• Dividend Yield: N/A
• Average Volume (3M): 83.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 934
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): >-0.01
• Shares Outstanding: 10,362,098
• 10 Day Avg. Volume: 58,327
• 30 Day Avg. Volume: 83,277
• PEG Ratio: -0.13
• Price to Book (P/B): 0.01
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -0.08
• Enterprise Value/Market Cap: -0.46
• Enterprise Value/Revenue: -0.09
• Enterprise Value/Gross Profit: -0.12
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $6.50 ▼(-3.27% Downside)

Cheetah Mobile's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis suggests a bearish trend, further weighing down the score. However, the positive developments from the latest earnings call, including achieving breakeven and strong growth in AI segments, provide a glimmer of hope for future improvement.

Positive Factors

AI Segment Growth

The expansion of the AI segment to 50% of total revenue indicates a successful strategic pivot, positioning the company for sustained growth in a high-demand industry.

Profitability Achievement

Achieving profitability for the first time in six years reflects improved operational efficiency and financial health, enhancing long-term business stability.

Gross Margin Improvement

Improved gross margins indicate better cost management and pricing power, supporting sustainable profitability and competitive advantage.

Negative Factors

Declining Revenue Trend

A long-term declining revenue trend suggests challenges in maintaining market share and product relevance, potentially impacting future growth.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, limiting the company's ability to invest in growth opportunities and manage financial obligations.

Operational Inefficiencies

Persistent operational inefficiencies hinder profitability and competitive positioning, requiring strategic adjustments to improve long-term performance.

Cheetah Mobile Business Overview & Revenue Model

Company Description

Cheetah Mobile Inc. (CMCM) is a mobile internet company based in China, specializing in developing and marketing utility and gaming applications for smartphones and tablets. Founded in 2010, the company operates primarily in the mobile application sector, offering a range of products that include system optimization tools, security apps, and entertainment applications. Notable products include Clean Master, a popular phone optimization tool, and several mobile games that have garnered substantial user engagement.

How the Company Makes Money

Cheetah Mobile generates revenue through a combination of advertising, in-app purchases, and partnerships. The primary revenue stream is advertising, where the company monetizes its user base by displaying ads within its applications. This includes both display ads and video ads, which are served through its own advertising platform as well as third-party networks. Additionally, Cheetah Mobile earns revenue from in-app purchases within its gaming applications, allowing users to buy virtual goods or other enhancements. The company also engages in partnerships with other tech firms and advertisers, further diversifying its revenue sources. The scale of its user base, particularly in emerging markets, combined with strategic advertising and gaming monetization efforts, significantly contribute to its earnings.

Cheetah Mobile Financial Statement Overview

Summary

Cheetah Mobile is facing significant financial challenges, with declining revenues, persistent net losses, and negative cash flow trends. Despite a strong cash position and low leverage, the company struggles with operational inefficiencies and inability to generate profits, weakening its overall financial health.

Income Statement

Cheetah Mobile has experienced a declining revenue trend over the years, with a significant drop from 2019 to 2024. The gross profit margin remains relatively strong at approximately 67.6% in 2024, but the company is struggling with negative net profit margins, reaching -76.5% in 2024. Both EBIT and EBITDA margins are also negative, indicating operational challenges and inefficiencies.

Balance Sheet

The company maintains a strong cash position, with cash and short-term investments exceeding total debt, resulting in negative net debt. However, the debt-to-equity ratio is low at 0.01, suggesting low leverage. Stockholders' equity has declined over the years, and the equity ratio stands at a moderate 34.5%, indicating a balanced asset structure. Despite this, the company has been unable to generate positive returns on equity due to sustained losses.

Cash Flow

Cheetah Mobile's cash flow position is concerning, with negative free cash flow in 2024, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is negative, showing that core operations are not generating sufficient cash. Despite previous periods of positive free cash flow, the overall trend is negative, suggesting liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	806.88M	669.50M	884.07M	784.62M	1.56B
Gross Profit	801.43M	545.20M	437.56M	631.50M	526.96M	1.11B
EBITDA	-62.18M	-232.91M	-174.57M	-172.57M	-178.75M	-462.57M
Net Income	-433.76M	-617.56M	-602.90M	-513.48M	-351.13M	416.73M
Balance Sheet
Total Assets	4.98B	5.50B	5.63B	5.14B	4.98B	5.63B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.83B	2.02B	1.67B	1.85B	1.66B
Total Debt	0.00	74.80M	35.99M	41.47M	48.13M	18.83M
Total Liabilities	2.80B	3.30B	2.97B	2.03B	1.62B	1.83B
Stockholders Equity	1.82B	1.90B	2.46B	3.03B	3.28B	3.76B
Cash Flow
Free Cash Flow	0.00	-261.15M	540.78M	-431.03M	55.99M	-105.40M
Operating Cash Flow	0.00	-238.32M	550.46M	-424.25M	102.81M	-46.13M
Investing Cash Flow	0.00	-34.09M	-49.06M	189.05M	220.84M	1.88B
Financing Cash Flow	0.00	69.11M	-6.78M	-4.87M	-9.64M	-1.45B

Cheetah Mobile Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCM, the sentiment is Negative. The current price of 6.72 is below the 20-day moving average (MA) of 6.98, below the 50-day MA of 7.35, and above the 200-day MA of 5.67, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCM.

Cheetah Mobile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	77 Outperform	$997.42M	19.39	36.81%	―	57.83%	293.63%
OPRA	67 Neutral	$1.28B	15.68	8.73%	5.47%	30.00%	-9.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	58 Neutral	$929.30M	-14.61	-14.07%	―	6.65%	50.32%
ZH	48 Neutral	$288.38M	20.53	2.39%	―	-23.61%	―
CMCM	46 Neutral	$206.24M	-3.38	-22.88%	―	―	―
GETY	45 Neutral	$623.79M	-6.80	-13.79%	―	3.10%	-264.21%

Cheetah Mobile Corporate Events

Cheetah Mobile Reports First Quarterly Profit in Six Years

On November 26, 2025, Cheetah Mobile announced its unaudited financial results for the third quarter of 2025, marking its first quarterly operating profit in six years. The company reported a 49.6% year-over-year revenue increase, driven by a 150.8% rise in the AI and others segment, which now accounts for half of the total revenue. This growth reflects the company’s strategic focus on AI technologies, particularly in AI robots and tools, positioning it for future expansion. The financial results indicate significant operational improvements, with a notable shift from losses to profits, highlighting Cheetah Mobile’s successful turnaround efforts.

Cheetah Mobile Reports Strong Q2 2025 Financial Growth

On September 11, 2025, Cheetah Mobile announced its unaudited financial results for the second quarter ending June 30, 2025, highlighting a 57.5% year-over-year increase in total revenue, driven by the transition to a subscription-based model and strong performance in its AI segment. The company reported significant improvements in profitability, with operating losses reduced by 85.7% year-over-year, and a notable decrease in net losses. The acquisition of UFACTORY aims to enhance their robotics capabilities, while ongoing investments in AI and robotics are expected to sustain growth and shareholder value.