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Kingsoft Cloud Holdings (KC)
NASDAQ:KC
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Kingsoft Cloud Holdings (KC) AI Stock Analysis

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KC

Kingsoft Cloud Holdings

(NASDAQ:KC)

Rating:59Neutral
Price Target:
$16.50
▲(5.10%Upside)
Kingsoft Cloud Holdings' overall stock score is driven primarily by its moderate financial performance and strong technical indicators. The positive momentum in stock price suggests market confidence, yet financial challenges such as ongoing losses and high leverage temper the outlook. Valuation concerns due to negative earnings further weigh on the score, while the earnings call reflects both opportunities in AI growth and risks from operational challenges.

Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)

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: 21.71%|
Next Earnings Date:Aug 26, 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
45
Neutral
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.
Balance Sheet
60
Neutral
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.
Cash Flow
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.79B7.05B8.18B9.06B6.58B
Gross Profit1.34B850.17M429.54M351.29M356.98M
EBITDA443.80M-1.08B-1.37B-776.06M-388.83M
Net Income-1.97B-2.18B-2.69B-1.59B-962.20M
Balance Sheet
Total Assets17.59B15.07B17.32B21.08B11.96B
Cash, Cash Equivalents and Short-Term Investments2.74B2.26B4.67B6.71B6.12B
Total Debt5.20B1.72B1.17B1.62B612.27M
Total Liabilities12.09B7.82B7.73B9.59B3.72B
Stockholders Equity5.17B6.89B8.80B10.60B8.24B
Cash Flow
Free Cash Flow-3.05B-2.13B-1.25B-1.44B-1.88B
Operating Cash Flow628.42M-169.07M188.97M-708.87M-290.43M
Investing Cash Flow-3.62B-673.19M-32.87M-421.62M-4.31B
Financing Cash Flow3.26B-227.85M-1.15B2.21B6.12B

Kingsoft Cloud Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.70
Price Trends
50DMA
12.98
Positive
100DMA
13.80
Positive
200DMA
11.43
Positive
Market Momentum
MACD
0.87
Negative
RSI
64.46
Neutral
STOCH
85.21
Negative
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 15.7 is above the 20-day moving average (MA) of 13.48, above the 50-day MA of 12.98, and above the 200-day MA of 11.43, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 64.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.21 is Negative, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.10B16.52124.77%2.49%21.59%223.84%
73
Outperform
$4.27B-6.85%20.46%39.37%
71
Outperform
$3.61B89.572.23%-3.12%-37.59%
69
Neutral
$4.79B482.280.97%14.52%
64
Neutral
$3.52B-83.36%9.84%13.74%
63
Neutral
$34.70B4.89-11.39%1.66%5.53%-19.00%
59
Neutral
$4.42B-33.09%13.85%3.47%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KC
Kingsoft Cloud Holdings
15.70
13.07
496.96%
BILL
Bill.com Holdings
45.24
-7.59
-14.37%
GTM
ZoomInfo Technologies
10.99
-0.60
-5.18%
ASAN
Asana
14.94
-0.43
-2.80%
YOU
Clear Secure
29.96
9.21
44.39%
FRSH
Freshworks
14.26
0.76
5.63%
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.Date of analysis: Jul 19, 2025