Cheetah Mobile Stock Analysis, Valuation (NYSE:CMCM)

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$9.1 $0.41 (4.72%) CMCM stock closing price Aug 17, 2018 (Closing)

Watch the robo advisor video of Cheetah Mobile stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for CMCM stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Cheetah Mobile Inc (ADR) Stock Rating 4.1/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CMCM stock analysis. We compare Cheetah Mobile valuation with its sector peers to gauge relative attractiveness of CMCM stock. Cheetah Mobile stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy CMCM stock?

  • The TTM operating margin was good at 11.51 for Cheetah Mobile.
  • Net margins stood at a healthy 27% (average) for Cheetah Mobile in the Trailing Twelve Months.
  • The Cheetah Mobile stock currently trades at a price to earnings ratio of 6.5, compared to the sector average of 25.8. We rate this as a positive.
  • When compared with the Computer and Technology sector average PS ratio of 2.9, the price-to-sales ratio of 1.7 for CMCM stock is attractive.
  • Cheetah Mobile's return on invested capital of 29.7 is good.
  • The LTM ROE of 34.9 for Cheetah Mobile is attractive.

Should you sell CMCM stock?

  • Cheetah Mobile salesgrew by a marginal 5.5% year over year in 2018-03.

Comments on this video and Cheetah Mobile stock

Amigobulls Cheetah Mobile stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CMCM stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Cheetah Mobile revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.