Earnings Review · 18 August 2026
Xiaomi Beat the Quarter, and Still Fails Our Ethical Screen. Here’s Why We Pass.
The print
Revenue n/a. EPS $1.17 vs $1.15 expected.
Did the flow confirm the move?
Underlying money flow is negative: sellers in control on balance going in.
Give the business its due
The business itself is genuinely strong: revenue growing about -11%, net margins near 8%, a moderate competitive moat.
The valuation lens
Our framework labels the valuation FAIR. Fair value lands near $20 against a $18 share price, a margin of safety of about 14%. The trailing multiple sits around 15 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Fails the principled screen, Debt ratio. A strong business is not the same as a suitable one; for a values-conscious book this is a do-not-chase regardless of the print.
The compliant alternative
If the theme is what draws you, Sonos, Inc. (SONO) sits in the same industry (Consumer Electronics) and clears our principled screen, the place to look instead of chasing a name that does not.
The verdict for a values-conscious investor
A beat-and-raise does not change the screen. This is a great company you can admire without owning, protection first. We do not confuse a strong quarter with a suitable holding.
This is analysis, not financial advice. Always manage your risk.
