Smart Share Global ADR (EM) AI Stock Analysis

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Smart Share Global ADR

(NASDAQ:EM)

Rating:52Neutral

Price Target:

$1.00

▼(-9.91%Downside)

The overall stock score of 52 reflects significant financial challenges, highlighted by declining revenues, profitability, and cash flows. While the technical analysis shows some short-term bullish signals, the company's valuation is hampered by its negative P/E ratio and lack of dividends. The stable balance sheet offers some support, but strategic changes are needed to improve financial performance.

Smart Share Global ADR (EM) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$279.12M

Dividend YieldN/A

Average Volume (3M)51.97K

Price to Earnings (P/E)129.3

Beta (1Y)0.26

Revenue Growth-37.29%

EPS Growth-116.91%

CountryUS

Employees3,656

SectorConsumer Cyclical

Sector Strength58

IndustryPersonal Products & Services

Share Statistics

EPS (TTM)N/A

Shares Outstanding216,582,280

10 Day Avg. Volume73,894

30 Day Avg. Volume51,973

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)1.54

Price to Sales (P/S)0.00

P/FCF Ratio15.36

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

Smart Share Global ADR Business Overview & Revenue Model

Company DescriptionSmart Share Global ADR (EM) is a technology-driven company primarily operating in the consumer electronics sector. The company is known for its innovative solutions in power bank sharing services, enabling users to rent power banks through an extensive network of kiosks located in various public places such as shopping malls, airports, and train stations across China. Smart Share Global aims to provide convenient and accessible mobile charging solutions to consumers, enhancing their on-the-go experiences.

How the Company Makes MoneySmart Share Global generates revenue primarily through its power bank sharing service. The company charges users a rental fee for each power bank borrowed from its kiosks. This fee is time-based, meaning the longer a user rents the power bank, the higher the charge. Additionally, Smart Share Global benefits from partnerships with location hosts, such as shopping malls and airports, where the company places its kiosks. These partnerships can sometimes include revenue-sharing agreements, where the location host receives a portion of the rental income. The company may also explore other revenue streams such as advertising on kiosks and offering premium services or subscriptions to frequent users. Overall, the combination of rental fees and strategic partnerships forms the core of Smart Share Global's revenue model.

Smart Share Global ADR Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q2-2024)

% Change Since: 1.83%|

Next Earnings Date:Aug 25, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted several achievements, such as a return to GAAP profitability, expansion in lower-tier cities, and growth in registered users and network partners. However, these were offset by significant revenue decline, challenges in the core business, and uncertain market conditions. The sentiment is mixed due to balanced highlights and lowlights.

Q2-2024 Updates

Positive Updates

Return to GAAP Profitability

Energy Monster returned to GAAP profitability with a net income of RMB 9 million in Q2 2024, marking a significant milestone in their financial performance.

Expansion in Lower-Tier Cities

POI count in third and lower-tier cities increased by more than 20% year-over-year, driving network expansion and diversification.

Record High POI Coverage

The company reached a record high of 1.27 million POIs, enhancing service availability across a wider geographic region.

Growth in Registered Users

Energy Monster's user base grew to over 417.1 million cumulative registered users, an increase of 12.8 million users in the second quarter.

Substantial Increase in Network Partners

The number of network partners increased to over 12,000, a growth of more than 1,000 since the end of Q1 2024 and around 3,700 year-over-year.

Significant Growth in Other Revenue

Other revenues grew by over 400% year-over-year, driven by new business initiatives in renewable energy.

Negative Updates

Revenue Decline

Revenues decreased by 55.3% year-over-year to RMB 422.9 million, mainly due to decreased POIs under the direct model and softness in consumer power.

Challenges in Core Business

The mobile device charging revenue from the direct model decreased by 60.7% year-over-year, reflecting challenges in consumer confidence and extreme weather conditions.

Operating Loss

The company reported a loss from operations of RMB 6.0 million for Q2 2024.

Uncertain Market Conditions

The market in the second quarter was challenging with no definitive trend of rebound, impacting visibility for the second half of 2024.

Company Guidance

During Energy Monster's Q2 2024 earnings call, the company highlighted several key performance metrics and strategic initiatives. Energy Monster returned to GAAP profitability with a net income of RMB 9 million and maintained non-GAAP profitability for the sixth consecutive quarter. The company reported a decrease in GMV due to a softer consumption environment, although month-on-month fluctuations were observed. The POI count in third and lower-tier cities increased by over 20% year-over-year, contributing to a record-high coverage of 1.27 million POIs. The user base grew to 417.1 million, with an addition of 12.8 million users. Financially, revenues were RMB 422.9 million, a 55.3% year-over-year decrease, primarily due to the transition to the network partner model, which now accounts for 89.2% of POIs. Other revenues surged by 453.7% year-over-year, driven by new business initiatives. Operationally, the network partner count rose by 41% year-over-year, enhancing distribution capabilities and market penetration. The company is focused on expanding its network partner model, optimizing POI performance, and exploring international markets to drive future growth.

Smart Share Global ADR Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and profitability and deteriorating cash flows. While the balance sheet remains relatively stable, the income and cash flow issues highlight potential risks that may require strategic adjustments.

Income Statement

Neutral

The company has experienced significant volatility in revenue and profitability. Revenue has declined from $2.96 billion in 2023 to $1.89 billion in 2024, indicating a negative growth trend. The gross profit margin decreased as well, from 59.1% in 2023 to 42.4% in 2024. Net income turned negative in 2024, with a net loss of $13.53 million, highlighting potential profitability challenges. These factors contribute to a lower income statement score.

Balance Sheet

Neutral

The balance sheet shows strong equity with a debt-to-equity ratio of 0.0025 in 2024, indicating low leverage. The equity ratio is robust at 64.4%, suggesting a well-capitalized position. However, a decline in stockholders' equity from $2.75 billion in 2023 to $2.66 billion in 2024 marks a slight deterioration. Overall, the balance sheet remains relatively stable, contributing to a moderate score.

Cash Flow

Negative

Free cash flow turned negative in 2024 at -$215.08 million from a positive $234.49 million in 2023, indicating cash flow constraints. Operating cash flow also decreased significantly, moving from $416.50 million in 2023 to -$205.67 million in 2024. This negative trend in cash flows highlights liquidity challenges, leading to a lower cash flow score.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.07B	1.89B	2.96B	2.84B	3.59B	2.81B
	Gross Profit
1.92B	803.63M	1.75B	2.28B	3.03B	2.38B
	EBIT
-202.14M	-71.17M	-1.06M	-621.25M	-109.00M	131.83M
	EBITDA
63.46M	196.08M	388.29M	-116.42M	310.34M	478.00M
	Net Income Common Stockholders
-218.40M	-13.53M	87.74M	-711.24M	234.43M	75.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.21B	2.92B	3.13B	3.04B	2.72B	1.42B
	Total Assets
4.41B	4.13B	4.43B	4.29B	4.40B	2.79B
	Total Debt
16.46M	6.58M	15.04M	10.62M	551.75M	24.50M
	Net Debt
-812.04M	-780.80M	-573.60M	-938.16M	-745.17M	-1.23B
	Total Liabilities
1.64B	1.47B	1.67B	1.65B	1.17B	1.09B
	Stockholders Equity
2.77B	2.66B	2.75B	2.64B	3.23B	1.70B
Cash Flow		Free Cash Flow
0.00	-215.08M	234.49M	265.26M	-245.61M	119.20M
	Operating Cash Flow
0.00	-205.67M	416.50M	708.14M	226.78M	536.12M
	Investing Cash Flow
0.00	419.58M	-598.53M	-1.02B	-1.71B	-261.49M
	Financing Cash Flow
0.00	-99.20M	-27.96M	-78.45M	1.56B	654.57M

Smart Share Global ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1.11

Price Trends

50DMA

1.08

Positive

100DMA

1.11

Negative

200DMA

0.91

Positive

Market Momentum

MACD

<0.01

Negative

RSI

55.07

Neutral

STOCH

55.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EM, the sentiment is Positive. The current price of 1.11 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.08, and above the 200-day MA of 0.91, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EM.

Smart Share Global ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
MRM	61 Neutral	$13.04M	8.87	23.48%	―	12.93%	66.81%
MED	54 Neutral	$144.64M	66.49	-3.32%	―	-39.47%	-110.28%
EM	52 Neutral	$279.12M	129.27	-0.55%	―	-37.29%	-116.91%
XWEL	47 Neutral	$4.85M	―	-797.66%	―	1.33%	35.82%
WGHTQ	40 Neutral	$20.87M	―		―	-10.33%	79.59%
EJH	40 Neutral	$8.63M	―	-11.87%	―	-25.81%	85.84%

* Consumer Cyclical Sector Average

Performance Comparison

Smart Share Global ADR

1.11

0.01

0.91%

MED

Medifast

12.98

-7.00

-35.04%

XWEL

XWELL

0.95

-1.40

-59.57%

WGHTQ

WW International

0.25

-0.93

-78.81%

MRM

MEDIROM Healthcare Technologies

1.56

-3.52

-69.29%

EJH

E-Home Household Service Holdings

2.35

-447.15

-99.48%

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.