Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price9.68 USD
Fair value19.36
Our investment reviews on this name
2026-10-02Read Markdown9.68+0.0% to today
2026-07-02Read Distribution11.69-17.2% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Kingsoft Cloud Holdings Limited holds its Markdown at $9.68. Elevated stress, defensive posture warranted, held for 8 days.
As held on the ledger · 2026-09-23
Phase
Markdown · caution
Quantitative state
Elevated stress, defensive posture warranted, held for 8 days
Price at the screen
$9.68
Valuation
N/A trailing · -398.33 forward price to earnings
Values screen
FAIL
Beta
1.96
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
247.92%
Below 33%
Interest-bearing debt is 247.9% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
141.42%
Below 33%
Interest-bearing cash and securities are 141.4% of assets, above the one-third limit.
Fail
Receivables
0.00%
Below 49%
Money owed to the company is 0.0% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Kingsoft Cloud's business is in a permissible area, but its interest-bearing debt is about 248% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-09-23 screen. The gold marker is the market price at the same screen. A 100.0% margin of safety to the base estimate.
Third-party analyst targets: 13 covering, consensus None. The average target sits +107% from the screen price.
Reading the gap · Both our model and the analysts see meaningful upside from here.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-23 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Cloud growth cannot mask debt and losses
Picture a startup racing to wire up servers across China while the bills pile up faster than the customers arrive. Kingsoft Cloud is posting 37% revenue growth yet still loses 9% on every pound of sales, with return on equity at minus 14% and a forward multiple that sits at minus 220 times earnings. The market's strong buy chorus and 20 dollar median target look tempting next to the 9.54 price, but the numbers tell a different story.
We pass because the business burns cash, carries too much debt, and already fails our ethical screen on leverage alone. Double the fair value on paper does not change the fact that losses are structural rather than temporary, and the debt load adds real fragility that growth alone cannot fix.
The biggest risks sit in continued cash burn and any tightening of credit that would expose the balance sheet further. Currency moves and competition from bigger Chinese cloud players only widen the gap between the headline growth and the actual returns on offer. Analysis, not advice.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
KC trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Markdown · changed$9.68-10.7%Entry 6
The framework has shifted from distribution to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 10.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 15%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (12 analysts) rates it strong buy, with a mean price target of $21.
2026-09-03Distribution$10.84+13.6%Entry 5
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 13.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 15%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (12 analysts) rates it strong buy, with a mean price target of $21.
2026-08-03Distribution$9.54-18.4%Entry 4
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 18.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 15%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (12 analysts) rates it strong buy, with a mean price target of $21.
2026-07-18Distribution$11.69+0.0%Entry 3
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it D. Technically it is momentum reading neutral. Over the past year the shares are down 15%. Our forward projection puts the odds of a 10% gain over the next month near 42%. The street (12 analysts) rates it strong buy, with a mean price target of $21.
2026-07-03Distribution$11.69+0.0%Entry 2
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
2026-07-02Distribution$11.69Entry 1
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
