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Kingsoft Cloud Holdings (KC)
NASDAQ:KC
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Kingsoft Cloud Holdings
(NASDAQ:KC)
Rating:54Neutral
Price Target:
$14.00
▲( 7.20% Upside)
Kingsoft Cloud Holdings (KC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.75B
Dividend YieldN/A
Average Volume (3M)2.98M
Price to Earnings (P/E)―
Beta (1Y)2.30
Revenue Growth8.56%
EPS Growth13.34%
CountryUS
Employees12,335
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding274,960,660
10 Day Avg. Volume1,579,144
30 Day Avg. Volume2,983,427
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)3.15
Price to Sales (P/S)0.00
P/FCF Ratio2.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.90Price Target Upside52.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 cloud services, which include computing, storage, networking, database, and security solutions. The company charges customers based on usage, subscription plans, and service level agreements. Key revenue streams include public cloud services, where customers access shared resources, and enterprise cloud services, which offer customized solutions for larger clients. Additionally, Kingsoft Cloud benefits from strategic partnerships with technology companies and industry leaders to expand its service offerings and reach. These collaborations help drive adoption and utilization of Kingsoft's cloud services, contributing significantly to its earnings.
Kingsoft Cloud Holdings Financial Statement Overview
Summary
Kingsoft Cloud Holdings shows moderate financial stability with improving gross profit margins and positive operating cash flow. However, persistent net losses and negative free cash flow indicate ongoing profitability and cash management challenges. The rising debt levels warrant cautious optimism as the company navigates its financial restructuring efforts.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 | EBIT |
| -1.74B | -2.11B | -2.25B | -1.81B | -1.21B | EBITDA |
| 443.80M | -1.08B | -1.37B | -776.06M | -388.83M | Net Income Common Stockholders |
| -1.97B | -2.18B | -2.69B | -1.59B | -962.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.74B | 2.26B | 4.67B | 6.71B | 6.12B | Total Assets |
| 17.59B | 15.07B | 17.32B | 21.08B | 11.96B | Total Debt |
| 5.91B | 1.72B | 1.17B | 1.62B | 612.27M | Net Debt |
| 3.26B | -532.82M | -2.25B | -2.60B | -2.81B | 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
Negative
13.06
Price Trends
14.03
Negative
14.28
Negative
9.31
Positive
Market Momentum
-0.08
Positive
45.04
Neutral
16.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KC, the sentiment is Negative. The current price of 13.06 is below the 20-day moving average (MA) of 13.90, below the 50-day MA of 14.03, and above the 200-day MA of 9.31, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.38B | 13.64 | 124.77% | 1.77% | 21.59% | 223.84% | |
74 Outperform | $3.12B | 77.26 | 2.23% | ― | -3.12% | -37.59% | |
71 Outperform | $4.32B | ― | -6.85% | ― | 20.46% | 39.37% | |
69 Neutral | $4.57B | 482.28 | 0.97% | ― | 14.52% | ― | |
66 Neutral | $4.11B | ― | -92.26% | ― | 10.94% | 4.54% | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
54 Neutral | $3.75B | ― | -32.59% | ― | 8.56% | 13.34% |
* Technology Sector Average
Performance Comparison
KC
Kingsoft Cloud Holdings
13.06
10.20
356.64%
BILL
Bill.com Holdings
44.40
-7.76
-14.88%
GTM
ZoomInfo Technologies
9.48
-3.47
-26.80%
ASAN
Asana
17.47
3.02
20.90%
YOU
Clear Secure
23.98
7.90
49.13%
FRSH
Freshworks
14.42
1.18
8.91%
Kingsoft Cloud Holdings Earnings Call Summary
Earnings Call Date:Mar 19, 2025
(Q4-2024)
| % Change Since: -27.81%|
Next Earnings Date:May 28, 2025
Earnings Call Sentiment Positive
The earnings call for Kingsoft Cloud's fourth quarter of 2024 highlighted significant revenue growth and the company's first-time profitability. The AI business and ecosystem partnerships with Xiaomi and Kingsoft drove impressive performance, although there were increased costs related to depreciation and solution development. Overall, the company demonstrated strong growth and strategic execution, outweighing the lowlights.Q4-2024 Updates
Positive Updates
Record Revenue Growth
Kingsoft Cloud achieved a total revenue of RMB2.23 billion in Q4 2024, with a year-over-year growth rate of 30%, doubling the growth from the previous quarter and leading the industry.
Public and Enterprise Cloud Revenue Growth
Public Cloud revenue grew by 34% year-over-year, and Enterprise Cloud revenue increased by 23% year-over-year, showing balanced growth across segments.
First-Time Profitability
The company achieved profitability for the first time with a non-GAAP operating margin of 1.1%, marking a significant improvement from a previous loss of 10.9%.
AI Business Surge
AI-related business gross billing reached RMB474 million, representing a nearly 500% year-over-year growth and contributing 34% to Public Cloud revenue.
Xiaomi and Kingsoft Ecosystem Growth
Revenues from the Xiaomi and Kingsoft ecosystem amounted to RMB493 million, up 78% year-over-year, with the ecosystem's share of total revenues increasing to 22%.
Negative Updates
Increased Depreciation and Amortization Costs
Depreciation and amortization costs rose significantly from RMB146.9 million to RMB343.1 million this quarter, mainly due to newly acquired GPU services.
Cost Pressure from Solution Development
Solution development and service costs increased by 10.8% year-over-year to RMB557 million, driven by the expansion in Camelot personnel to support revenue growth.
Company Guidance
During Kingsoft Cloud's fourth quarter and full-year 2024 earnings call, the company reported several key financial metrics and provided strategic guidance. The total revenue for the quarter reached RMB2.23 billion, reflecting a 30% year-over-year growth, with Public Cloud and Enterprise Cloud revenues increasing by 34% and 23%, respectively. The non-GAAP operating profit turned positive for the first time, with an operating margin of 1.1%, representing a 12 percentage point improvement. The non-GAAP gross profit was RMB427.7 million, a 63% increase year-over-year, and the non-GAAP EBITDA margin reached 16%. AI-related business showed significant growth, with gross billing reaching RMB474 million, contributing 34% to Public Cloud revenue. Furthermore, revenues from the Xiaomi and Kingsoft ecosystem grew by 78% year-over-year, amounting to RMB493 million. For 2025, Kingsoft Cloud anticipates continued revenue growth and profitability improvement, driven by AI advancements and strategic partnerships within the Xiaomi and Kingsoft ecosystem.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.