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Kingsoft Cloud Holdings (KC)
NASDAQ:KC
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Kingsoft Cloud Holdings
(NASDAQ:KC)
Rating:52Neutral
Price Target:
$14.00
▲(4.63% Upside)
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.84B
Dividend YieldN/A
Average Volume (3M)1.90M
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth13.85%
EPS Growth3.47%
CountryUS
Employees12,335
SectorTechnology
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.01
Shares Outstanding279,585,660
10 Day Avg. Volume1,419,842
30 Day Avg. Volume1,903,757
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit2.87
Enterprise Value/Ebitda-4.56
Forecast
1Y Price Target
$15.63Price Target Upside16.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Kingsoft Cloud Holdings Business Overview & Revenue Model
Company DescriptionKingsoft Cloud Holdings Limited provides cloud services to businesses and organizations in China. The company offers public cloud services to customers in various verticals, including game, video, AI, e-commerce, education, and mobile internet; and enterprise cloud services to customers in financial service, public service, and healthcare businesses. The company was incorporated in 2012 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyKingsoft Cloud Holdings generates revenue primarily through the provision of its cloud services, which include computing, storage, and networking solutions. The company's key revenue streams are its public cloud services, which are commonly used by businesses to scale their operations without investing in physical IT infrastructure, and its enterprise cloud services, which offer customized cloud solutions for specific industries. Additionally, Kingsoft Cloud benefits from strategic partnerships with technology companies and industry collaborations that enhance its service offerings and market penetration. The company also capitalizes on the growing demand for digital transformation across various sectors, which drives the adoption of its cloud services.
Kingsoft Cloud Holdings Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q1-2025)
| % Change Since: 3.72%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook. While there is significant growth and expansion in AI and public cloud segments, challenges in operating profits, declining gross margins, and external pressures such as chip bans present concerns. Ecosystem collaborations and strategic investments in AI provide a positive outlook, but are balanced by operational and financial challenges.Q1-2025 Updates
Positive Updates
Year-over-Year Revenue Growth
The company recorded a year-over-year revenue growth of 11%, reaching RMB 1.97 billion, with public cloud increasing by 14% to RMB 1.35 billion.
AI Business Expansion
AI gross billing reached RMB 525 million, representing a year-over-year increase of over 200% and a quarter-over-quarter growth of 11%, contributing 39% of public cloud revenue.
Ecosystem Collaboration
Revenue from Xiaomi and Kingsoft ecosystem reached RMB 500 million, up 50% year-over-year, contributing 25% to total revenue.
Non-GAAP EBITDA Margin Improvement
Non-GAAP EBITDA margin reached 16.2%, an increase of 14.3 percentage points year-over-year.
Negative Updates
Non-GAAP Operating Loss
The non-GAAP operating profit turned to a loss of RMB 55 million, with a negative operating margin of 2.8%.
Gross Margin Decline
Non-GAAP gross margin declined by 2.6 percentage points quarter-over-quarter to 16.6%.
Enterprise Cloud Revenue Decrease
Enterprise cloud revenue saw a 25% sequential decrease due to seasonal slowdowns in project delivery and acceptance.
Impact of Chip Ban
Potential mid to long-term impact on operations due to chip ban restrictions, although short-term effects are mitigated by existing inventory.
Company Guidance
During the Kingsoft Cloud Holdings Limited First Quarter 2025 Earnings Conference Call, key financial metrics were highlighted, showcasing the company's growth and strategic focus on AI. The company reported a year-over-year revenue growth of 11%, reaching RMB 1.97 billion, with public cloud revenue increasing by 14% to RMB 1.35 billion. AI gross billing surged over 200% year-over-year to RMB 525 million, contributing 39% of public cloud revenue. Despite some fluctuations, the non-GAAP gross profit was RMB 327 million, showing a 9.6% increase year-over-year, although the non-GAAP gross margin declined by 2.6 percentage points quarter-over-quarter to 16.6%. The non-GAAP operating loss was RMB 55 million, with an adjusted EBITDA margin of 16.2%, up from 1.9% the previous year. Additionally, capital expenditure reached RMB 605 million, and total adjusted operating expenses decreased by 9% year-over-year to RMB 427.3 million. The company remains optimistic about future growth, particularly in AI, while navigating market pressures and supply chain uncertainties.Kingsoft Cloud Holdings Financial Statement Overview
Summary
Kingsoft Cloud Holdings shows moderate financial stability with improvements in gross profit margins and positive operating cash flow. However, ongoing net losses and negative free cash flow highlight challenges in profitability and cash management. Rising debt levels add to the financial risk.Income Statement
Despite a recent increase in gross profit margin to 17.2% from 12.1% the previous year, Kingsoft Cloud Holdings faces challenges with negative EBIT and net profit margins, indicating ongoing operational inefficiencies. Revenue growth has been inconsistent, with a decline of 13.2% in 2022 followed by a recovery of 10.5% in 2023. These factors contribute to a moderate income statement score.45
Neutral
Balance Sheet
The company's balance sheet shows a stable equity ratio of 29.4%, reflecting a solid capital structure. However, the debt-to-equity ratio has increased, signaling rising financial leverage. Return on equity remains negative due to persistent net losses, which highlights profitability concerns. Overall, the balance sheet is relatively stable but with some risk factors.60
Neutral
Cash Flow
Kingsoft Cloud Holdings has shown improvement in operating cash flow, turning positive in 2023, indicating better cash management. However, free cash flow remains negative, albeit improved from prior years. The operating cash flow to net income ratio suggests cash generation is better than reported earnings, but continued negative free cash flow poses concerns for financial sustainability.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.79B | 7.05B | 8.18B | 9.06B | 6.58B |
| Gross Profit | 1.34B | 850.17M | 429.54M | 351.29M | 356.98M |
| EBITDA | 443.80M | -1.08B | -1.37B | -776.06M | -388.83M |
| Net Income | -1.97B | -2.18B | -2.69B | -1.59B | -962.20M |
Balance Sheet | |||||
| Total Assets | 17.59B | 15.07B | 17.32B | 21.08B | 11.96B |
| Cash, Cash Equivalents and Short-Term Investments | 2.74B | 2.26B | 4.67B | 6.71B | 6.12B |
| Total Debt | 5.20B | 1.72B | 1.17B | 1.62B | 612.27M |
| Total Liabilities | 12.09B | 7.82B | 7.73B | 9.59B | 3.72B |
| Stockholders Equity | 5.17B | 6.89B | 8.80B | 10.60B | 8.24B |
Cash Flow | |||||
| Free Cash Flow | -3.05B | -2.13B | -1.25B | -1.44B | -1.88B |
| Operating Cash Flow | 628.42M | -169.07M | 188.97M | -708.87M | -290.43M |
| Investing Cash Flow | -3.62B | -673.19M | -32.87M | -421.62M | -4.31B |
| Financing Cash Flow | 3.26B | -227.85M | -1.15B | 2.21B | 6.12B |
Kingsoft Cloud Holdings Technical Analysis
Positive
13.38
Price Trends
13.29
Positive
13.37
Positive
12.20
Positive
Market Momentum
0.03
Positive
49.55
Neutral
31.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KC, the sentiment is Positive. The current price of 13.38 is below the 20-day moving average (MA) of 14.55, above the 50-day MA of 13.29, and above the 200-day MA of 12.20, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 31.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KC.
Kingsoft Cloud Holdings Risk Analysis
Kingsoft Cloud Holdings disclosed 98 risk factors in its most recent earnings report. Kingsoft Cloud Holdings 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 0 New Risks
Kingsoft Cloud Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.43B | 17.84 | 128.70% | 2.24% | 19.85% | 135.66% | |
74 Outperform | $4.02B | 482.28 | 0.97% | ― | 14.52% | ― | |
70 Outperform | $3.06B | 36.68 | 5.22% | ― | -0.54% | 626.94% | |
66 Neutral | $3.66B | ― | -5.23% | ― | 19.78% | 47.51% | |
61 Neutral | $3.06B | ― | -83.36% | ― | 9.84% | 13.74% | |
52 Neutral | $3.84B | ― | -33.09% | ― | 13.85% | 3.47% | |
50 Neutral | AU$1.63B | 3.35 | -0.63% | 3.31% | 16.47% | -4.12% |
* Technology Sector Average
Performance Comparison
KC
Kingsoft Cloud Holdings
13.83
11.48
488.51%
BILL
Bill.com Holdings
40.41
-6.73
-14.28%
GTM
ZoomInfo Technologies
10.09
1.22
13.75%
ASAN
Asana
13.91
1.19
9.36%
YOU
Clear Secure
34.12
7.59
28.61%
FRSH
Freshworks
13.27
2.20
19.87%
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.