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Yahoo
a day ago
- Business
- Yahoo
When Will Kingsoft Cloud Holdings Limited (NASDAQ:KC) Turn A Profit?
Kingsoft Cloud Holdings Limited () is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kingsoft Cloud Holdings Limited provides cloud services to businesses and organizations primarily in China. On 31 December 2024, the US$3.3b market-cap company posted a loss of CN¥2.0b for its most recent financial year. As path to profitability is the topic on Kingsoft Cloud Holdings' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Kingsoft Cloud Holdings is bordering on breakeven, according to the 11 American IT analysts. They expect the company to post a final loss in 2026, before turning a profit of CN¥352m in 2027. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 97% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. We're not going to go through company-specific developments for Kingsoft Cloud Holdings given that this is a high-level summary, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period. View our latest analysis for Kingsoft Cloud Holdings One thing we would like to bring into light with Kingsoft Cloud Holdings is its relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in Kingsoft Cloud Holdings' case is 98%. Note that a higher debt obligation increases the risk in investing in the loss-making company. There are too many aspects of Kingsoft Cloud Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Kingsoft Cloud Holdings' company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine: Valuation: What is Kingsoft Cloud Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Kingsoft Cloud Holdings is currently mispriced by the market. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Kingsoft Cloud Holdings's board and the CEO's background. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
15-02-2025
- Business
- Yahoo
Public companies among Kingsoft Cloud Holdings Limited's (NASDAQ:KC) largest shareholders, saw gain in holdings value after stock jumped 23% last week
Kingsoft Cloud Holdings' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public A total of 2 investors have a majority stake in the company with 55% ownership 13% of Kingsoft Cloud Holdings is held by Institutions To get a sense of who is truly in control of Kingsoft Cloud Holdings Limited (NASDAQ:KC), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Clearly, public companies benefitted the most after the company's market cap rose by US$892m last week. Let's delve deeper into each type of owner of Kingsoft Cloud Holdings, beginning with the chart below. See our latest analysis for Kingsoft Cloud Holdings Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Kingsoft Cloud Holdings does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Kingsoft Cloud Holdings' historic earnings and revenue below, but keep in mind there's always more to the story. Hedge funds don't have many shares in Kingsoft Cloud Holdings. Looking at our data, we can see that the largest shareholder is Kingsoft Corporation Limited with 41% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 5.4% by the third-largest shareholder. After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own less than 1% of Kingsoft Cloud Holdings Limited. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$2.9m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling. With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kingsoft Cloud Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. We can see that public companies hold 55% of the Kingsoft Cloud Holdings shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. It's always worth thinking about the different groups who own shares in a company. But to understand Kingsoft Cloud Holdings better, we need to consider many other factors. For instance, we've identified 3 warning signs for Kingsoft Cloud Holdings (2 are potentially serious) that you should be aware of. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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