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Cheetah Mobile (CMCM)
NYSE:CMCM
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Cheetah Mobile
(NYSE:CMCM)
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Rating:41Neutral
Price Target:
$6.00
▼(-5.81% Downside)
Cheetah Mobile's overall stock score is primarily impacted by its weak financial performance and valuation. The company's ongoing losses and negative cash flow trends are significant concerns. While the earnings call showed positive developments, the technical indicators suggest bearish momentum, and the valuation remains unattractive due to negative earnings.
Cheetah Mobile (CMCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$221.89M
Dividend YieldN/A
Average Volume (3M)83.28K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees934
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding10,362,098
10 Day Avg. Volume58,327
30 Day Avg. Volume83,277
Financial Highlights & Ratios
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-0.42
Enterprise Value/Revenue-0.10
Enterprise Value/Gross Profit-0.13
Enterprise Value/Ebitda0.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Cheetah Mobile Business Overview & Revenue Model
Company DescriptionCheetah 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 MoneyCheetah 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 Key Performance Indicators (KPIs)
Cheetah Mobile Earnings Call Summary
Earnings Call Date:Sep 11, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive outlook with significant improvements in revenue, operating losses, and strategic growth areas like AI and robotics. However, there are ongoing challenges with operating losses and the uncertain pace of growth in the robotics market.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Cheetah Mobile reported a 58% year-over-year revenue growth driven by a 39% increase in Internet business and an 86% increase in AI and other segments.
Significant Decrease in Operating Loss
The company's operating loss decreased by 86% year-over-year, and the non-GAAP operating loss was down 97% from last year, nearing breakeven.
Successful Transition to Subscription Model
Cheetah Mobile successfully shifted from an advertising to a subscription model, with subscriptions now comprising about 60% of Internet revenues.
Robotics and AI Expansion
Revenues from service robots grew, with successful integration of new technologies like AI agents, improving the company's robotics capabilities.
Improved Financial Metrics
Gross profit increased by 85% year-over-year, with a gross margin improvement to 76%. Net loss attributable to shareholders decreased by 82% year-over-year.
Strong Cash Position
The company maintains a strong cash position with RMB 282 billion in cash and cash equivalents and USD 110 million in long-term investments.
Acquisition of New Factor
Cheetah Mobile completed the acquisition of a profitable robotic arm company, New Factor, enhancing the company's robotics capabilities.
Negative Updates
Ongoing Operating Losses
Despite improvements, the company still reported an operating loss of RMB 11 million and a net loss of RMB 23 million attributable to shareholders.
Caution on Robotics Market
The management warned that the service robotics market is still developing, and mass deployment may not happen in the coming quarters.
Company Guidance
In the second quarter of 2025, Cheetah Mobile showcased significant progress with a revenue increase of 58% year-over-year, driven by a 39% rise in their Internet business and an impressive 86% surge in AI and other segments. Their operating loss decreased by 86% year-over-year, and the non-GAAP operating loss was down by 97%, nearly reaching breakeven. The company's strategic shift from advertising to a subscription model, which now comprises about 60% of Internet revenues, has strengthened user engagement and retention. This financial health allows for continued investment in AI and robotics. Cheetah Mobile's robust cash position of RMB 282 billion and zero debt provide the flexibility to pursue growth opportunities. Their recent acquisition of a profitable robotic arm company, New Factory, underscores their commitment to scalable, real-world robotics solutions. Overall, Cheetah Mobile is poised for sustainable profitability, supported by a solid Internet business, disciplined AI strategy, and strong capital flexibility.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.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 | 983.40M | 806.88M | 669.50M | 884.07M | 784.62M | 1.56B |
| Gross Profit | 717.43M | 545.20M | 437.56M | 631.50M | 526.96M | 1.11B |
| EBITDA | -142.17M | -232.91M | -174.57M | -172.57M | -178.75M | -462.57M |
| Net Income | -469.68M | -617.56M | -602.90M | -513.48M | -351.13M | 416.73M |
Balance Sheet | ||||||
| Total Assets | 5.24B | 5.50B | 5.63B | 5.14B | 4.98B | 5.63B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 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 | 3.07B | 3.30B | 2.97B | 2.03B | 1.62B | 1.83B |
| Stockholders Equity | 1.84B | 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
Negative
6.37
Price Trends
7.79
Negative
6.60
Negative
5.54
Positive
Market Momentum
-0.26
Positive
34.60
Neutral
10.97
Positive
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 6.37 is below the 20-day moving average (MA) of 7.21, below the 50-day MA of 7.79, and above the 200-day MA of 5.54, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 34.60 is Neutral, neither overbought nor oversold. The STOCH value of 10.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $911.84M | 17.40 | 36.81% | ― | 57.83% | 293.63% | |
67 Neutral | $1.21B | 14.79 | 8.73% | 5.95% | 30.00% | -9.72% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $643.06M | ― | -14.07% | ― | 6.65% | 50.32% | |
51 Neutral | $348.11M | 17.33 | 3.27% | ― | -22.16% | ― | |
45 Neutral | $603.00M | ― | -13.79% | ― | 3.10% | -264.21% | |
41 Neutral | $221.89M | -3.35 | -22.88% | ― | ― | ― |
* Communication Services Sector Average
CMCM
Cheetah Mobile
6.37
1.69
36.11%
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Cheetah Mobile Corporate Events
Cheetah Mobile Reports Strong Q2 2025 Financial Growth
Sep 11, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.