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Cheetah Mobile (CMCM)
NYSE:CMCM
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Cheetah Mobile
(NYSE:CMCM)
Rating:47Neutral
Price Target:
$4.00
▼( -3.15% Downside)
Cheetah Mobile (CMCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$122.32M
Dividend YieldN/A
Average Volume (3M)19.06K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees934
SectorCommunication Services
Sector Strength86
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.03
Shares Outstanding10,362,098
10 Day Avg. Volume19,677
30 Day Avg. Volume19,062
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)<0.01
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Cheetah Mobile Business Overview & Revenue Model
Company DescriptionCheetah Mobile (CMCM) is a Chinese mobile internet company that operates in the technology and software sectors. The company is primarily known for its suite of utility applications designed to optimize smartphone performance, enhance security, and provide entertainment. Core products include Clean Master, a popular phone optimization app, and CM Security, an antivirus and security application. Cheetah Mobile also extends its services to mobile advertising and game development, catering to a global audience.
How the Company Makes MoneyCheetah Mobile generates revenue primarily through its advertising services and mobile applications. The company leverages its large user base to attract advertisers, offering in-app advertising space as a key revenue stream. Additionally, Cheetah Mobile earns money through its gaming segment, which includes in-app purchases and premium content offerings. The company's revenue is further supplemented by partnerships with other technology firms, which help to expand its reach and diversify its income sources. Significant factors contributing to its earnings include its ability to monetize its extensive user data and deliver targeted advertising solutions.
Cheetah Mobile Financial Statement Overview
Summary
Cheetah Mobile is experiencing significant financial challenges with declining revenues, persistent net losses, and negative cash flow trends. Despite a strong cash position and low leverage, the operational inefficiencies and inability to generate profits are major concerns.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.35
Negative
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.50
Neutral
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.30
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 735.85M | 806.88M | 669.50M | 884.07M | 784.62M | 1.56B | Gross Profit |
| 471.99M | 545.20M | 437.56M | 631.50M | 526.96M | 1.11B | EBIT |
| -280.89M | -437.25M | -209.84M | -225.59M | -229.57M | -531.11M | EBITDA |
| -255.69M | -232.91M | -174.57M | -172.57M | -178.75M | -462.57M | Net Income Common Stockholders |
| -413.58M | -617.56M | -602.90M | -522.19M | -353.20M | 416.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.79B | 1.83B | 2.02B | 1.67B | 1.85B | 1.66B | Total Assets |
| 5.62B | 5.50B | 5.63B | 5.14B | 4.98B | 5.63B | Total Debt |
| 5.00M | 25.61M | 35.99M | 41.47M | 48.13M | 18.83M | Net Debt |
| -1.79B | -1.81B | -1.98B | -1.47B | -1.54B | -1.28B | Total Liabilities |
| 2.93B | 3.30B | 2.97B | 2.03B | 1.62B | 1.83B | Stockholders Equity |
| 2.40B | 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
Positive
4.13
Price Trends
4.11
Positive
4.53
Negative
4.45
Negative
Market Momentum
0.02
Negative
56.21
Neutral
91.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCM, the sentiment is Positive. The current price of 4.13 is above the 20-day moving average (MA) of 3.89, above the 50-day MA of 4.11, and below the 200-day MA of 4.45, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 91.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMCM.
Cheetah Mobile Risk Analysis
Cheetah Mobile disclosed 86 risk factors in its most recent earnings report. Cheetah Mobile reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
If our expansion into new businesses is not successful, our results of operations and growth prospects may be materially and adversely affected Q4, 2023
2.
We have limited experience commercializing our service robots at a large scale and may not be able to do so efficiently or effectively. Q4, 2023
3.
If our products and services, including our service robots, our AI-powered business solutions, our advertising agency services and multi-cloud management services, fail to offer a good experience and meet customer expectations, our business, results of operations and reputation would be materially and adversely affected. Q4, 2023
Cheetah Mobile Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $47.22M | ― | -28.40% | ― | 7.16% | -90.90% | |
60 Neutral | $14.21B | 6.47 | -3.76% | 3.69% | 2.48% | -35.46% | |
57 Neutral | $31.76M | ― | -6.60% | ― | 4.26% | 88.30% | |
49 Neutral | $69.84M | ― | -16.65% | ― | 105.31% | 95.66% | |
47 Neutral | $122.32M | ― | -24.55% | ― | ― | ― | |
46 Neutral | $23.45M | ― | -29.17% | ― | -3.17% | 13.15% | |
40 Underperform | $27.60M | ― | -130.56% | ― | -26.11% | 57.68% |
* Communication Services Sector Average
Performance Comparison
CMCM
Cheetah Mobile
4.13
-1.62
-28.17%
SCOR
comScore
4.74
-8.90
-65.25%
IZEA
IZEA Worldwide
2.95
0.20
7.27%
ZDGE
Zedge
2.39
-0.16
-6.27%
CCG
Cheche Group
0.82
-0.62
-43.06%
BODI
Beachbody Company
3.84
-4.69
-54.98%
Cheetah Mobile Earnings Call Summary
Earnings Call Date:Mar 26, 2025
(Q4-2024)
| % Change Since: -15.71%|
Next Earnings Date:Jun 06, 2025
Earnings Call Sentiment Positive
Cheetah Mobile demonstrated strong revenue growth and significant advancements in reducing operating losses, with notable achievements in their robotics and AI segments. The introduction of new technologies like AgentOS and successful expansion into global markets further highlight their positive trajectory. However, the company continues to face challenges in achieving profitability and navigating early-stage market dynamics in robotics.Q4-2024 Updates
Positive Updates
Robust Revenue Growth
Total revenue grew 42% year-over-year and 23% quarter-over-quarter in Q4 2024, with a full year revenue increase of 21% to RMB807 million.
Reduction in Non-GAAP Operating Losses
Non-GAAP operating losses decreased by about RMB18 million quarter-over-quarter and about RMB7 million year-over-year to RMB42 million in Q4 2024.
Strong Cash Flow Generation
The company generated about $39 million in operating cash flow, closing Q4 with a net cash position of about $250 million.
Expansion in Robotics Business
Robotics revenue outgrew other business segments within AI and others, contributing about one-third of AI and other revenues, or about 10% of total revenues.
Launch of AgentOS
Introduction of AgentOS, a next-generation voice interaction system for service robots, enhancing voice-enabled capabilities and expanding the total addressable market.
Global Expansion and Market Leadership
Cheetah became the largest service robot provider in Italy within 12 months and plans to open a European headquarters in Germany.
Negative Updates
Continued Operating Losses
Despite reductions, the company still reported a non-GAAP operating loss of RMB42 million in Q4 2024.
Challenges in AI and Robotics Market Expansion
The robotics market is still in an early stage with a lot of required investments and competition.
Company Guidance
During the Cheetah Mobile Fourth Quarter 2024 Earnings Conference Call, the company reported a robust 42% year-over-year and 23% quarter-over-quarter increase in total revenue for Q4, reaching RMB237 million. For the full year 2024, total revenue increased by 21% to RMB807 million. The company's non-GAAP gross profits rose by 74% year-over-year and 32% quarter-over-quarter to RMB172 million, with non-GAAP gross margins increasing to 73%. Non-GAAP operating losses were reduced by RMB18 million quarter-over-quarter and RMB7 million year-over-year, totaling RMB42 million. The company's Internet business accounted for 68% of total revenue, showing a 49% year-over-year increase, while the AI and robotics segment grew by 29% year-over-year and 33% quarter-over-quarter. The company aims to become a top three service robot provider globally within three years, leveraging its AgentOS and advanced LLMs to enhance product offerings and expand market share. Cheetah Mobile closed Q4 with a net cash position of approximately $250 million and $100 million in long-term investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.