Cheetah Mobile (CMCM) AI Stock Analysis

• Market Cap: $251.97M
• Dividend Yield: N/A
• Average Volume (3M): 62.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• 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: 125,005
• 30 Day Avg. Volume: 62,938
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.37
• Enterprise Value/Revenue: -0.12
• Enterprise Value/Gross Profit: -0.18
• Enterprise Value/Ebitda: 0.35
• 1Y Price Target: $8.00
• Price Target Upside: -2.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $9.00 ▲(9.62% Upside)

Cheetah Mobile's overall stock score is primarily impacted by its financial challenges, including declining revenues and persistent losses. While technical indicators show bullish momentum, the stock is overbought, and valuation metrics are unattractive. Positive developments from the earnings call, such as revenue growth and strategic shifts, are notable but not enough to offset financial weaknesses.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful business strategies, particularly in the Internet and AI segments.

Transition to Subscription Model

The shift to a subscription model enhances revenue stability and user engagement, providing a more predictable income stream and reducing reliance on advertising.

Strong Cash Position

A robust cash position provides financial flexibility to invest in growth opportunities and withstand market fluctuations, supporting long-term strategic initiatives.

Negative Factors

Declining Revenues

Persistent revenue decline poses a challenge to long-term growth and sustainability, necessitating effective strategies to reverse the trend and enhance market competitiveness.

Negative Cash Flow

Negative cash flow suggests liquidity challenges, limiting the company's ability to fund operations and invest in growth without external financing.

Ongoing Operating Losses

Continued operating losses highlight operational inefficiencies and the need for cost management improvements to achieve sustainable profitability.

Cheetah Mobile Business Overview & Revenue Model

Company Description

Cheetah Mobile Inc. operates as an internet company in the People's Republic of China, the United States, Japan, and internationally. The company's utility products include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices; Security Master, an anti-virus and security application for mobile devices; and Duba Anti-virus, an internet security application to protect users against known and unknown security threats and malicious applications. In addition, it offers mobile games comprising Piano Tiles 2, Rolling Sky, and Dancing Line; value-added products, such as PC and mobile products, as well as wallpaper, office optimization software, and others; E-Coupon vending robot, a reception and marketing robot; and multi-cloud management platform and overseas advertising agency service. Further, the company provides mobile advertising publisher services; duba.com personal start page that aggregates online resources and provides users access to their online destinations; cloud-based data analytics engines; artificial intelligence and other services; and premium membership services. It serves direct advertisers that include mobile application developers, mobile game developers, and e-commerce companies, as well as search engines and partnering mobile advertising networks. The company was formerly known as Kingsoft Internet Software Holdings Limited and changed its name to Cheetah Mobile Inc. in March 2014. Cheetah Mobile Inc. was incorporated in 2009 and is based in Beijing, the People's Republic of China.

How the Company Makes Money

Cheetah Mobile generates revenue primarily through advertising, in-app purchases, and partnerships. The company monetizes its free applications by displaying ads, which are a significant source of income. Additionally, it earns revenue from in-app purchases within its gaming applications, where users can buy virtual goods and features. The company also engages in strategic partnerships with other tech firms to enhance its product offerings and expand its user base, further contributing to its revenue streams. Furthermore, Cheetah Mobile has explored various monetization strategies, including premium app versions and data analytics, to diversify its income sources.

Cheetah Mobile Financial Statement Overview

Summary

Cheetah Mobile is facing significant financial challenges, with declining revenues, persistent net losses, and negative cash flow trends. While the company maintains a strong cash position, operational inefficiencies and inability to generate profits are major concerns. The balance sheet is relatively stable with low leverage, but the overall financial health is weakened by ongoing losses.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	806.88M	669.50M	884.07M	784.62M	1.56B
Gross Profit	545.20M	437.56M	631.50M	526.96M	1.11B
EBITDA	-232.91M	-174.57M	-172.57M	-178.75M	-462.57M
Net Income	-617.56M	-602.90M	-522.19M	-353.20M	416.73M
Balance Sheet
Total Assets	5.50B	5.63B	5.14B	4.98B	5.63B
Cash, Cash Equivalents and Short-Term Investments	1.83B	2.02B	1.67B	1.85B	1.66B
Total Debt	25.61M	35.99M	41.47M	48.13M	18.83M
Total Liabilities	3.30B	2.97B	2.03B	1.62B	1.83B
Stockholders Equity	1.90B	2.46B	3.03B	3.28B	3.76B
Cash Flow
Free Cash Flow	-261.15M	540.78M	-431.03M	55.99M	-105.40M
Operating Cash Flow	-238.32M	550.46M	-424.25M	102.81M	-46.13M
Investing Cash Flow	-34.09M	-49.06M	189.05M	220.84M	1.88B
Financing Cash Flow	69.11M	-6.78M	-4.87M	-9.64M	-1.45B

Cheetah Mobile Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 8.21 is above the 20-day moving average (MA) of 6.26, above the 50-day MA of 5.62, and above the 200-day MA of 4.87, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 70.39 is Negative, neither overbought nor oversold. The STOCH value of 78.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMCM.

Cheetah Mobile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCG	61 Neutral	$86.43M	―	-16.65%	―	105.31%	95.66%
Sector *	60 Neutral	$47.40B	4.51	-11.27%	4.14%	2.83%	-41.62%
SCOR	58 Neutral	$34.10M	―	-33.83%	―	-0.06%	-87.64%
ZDGE	58 Neutral	$41.85M	―	-6.29%	―	1.27%	78.96%
CMCM	53 Neutral	$251.97M	―	-22.88%	―	―	―
BODI	52 Neutral	$45.58M	―	-133.94%	―	-31.96%	56.06%
IZEA	51 Neutral	$62.42M	―	-22.39%	―	12.49%	-30.99%

Cheetah Mobile Corporate Events

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.

Cheetah Mobile Acquires Majority Stake in UFACTORY to Boost Robotics Strategy

On July 28, 2025, Cheetah Mobile announced its acquisition of a 60.8% equity interest in Shenzhen UFACTORY Technology Co., Ltd., a leader in lightweight robotic arms, for approximately RMB99.5 million. This acquisition, which will increase Cheetah Mobile’s total ownership in UFACTORY to 75.8%, is aimed at accelerating its robotics commercialization strategy. The transaction, approved by the board and audit committee, is expected to close in the third quarter of 2025. This move is part of Cheetah Mobile’s strategy to enhance its product portfolio and expand its presence in AI and robotics, leveraging UFACTORY’s technology and market position to deliver smarter robotics solutions globally.

Cheetah Mobile Reports Strong Q1 2025 Financial Results with Significant Revenue Growth

Cheetah Mobile announced its unaudited financial results for the first quarter of 2025, reporting a significant 36.1% year-over-year revenue growth and improved margins. The company narrowed its operating losses and saw substantial growth in its Internet business, with a 46.0% increase in revenue. Cheetah Mobile continues to invest in AI and robotics, focusing on agentic AI as a transformative force. The company aims to strengthen its position in AI ventures by developing practical AI tools and robots, while maintaining steady revenue growth from its legacy businesses. As of March 31, 2025, Cheetah Mobile had strong liquidity with cash and cash equivalents of RMB1,699.2 million.