SenseTime Group Inc. (0020.HK) stock analysis

In our weekly check, SenseTime Group Inc. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 10 pass, warnings: 4, red flags: 9.

About SenseTime Group Inc.

SenseTime Group Inc. is a Technology company (Software - Application) based in China, listed on HKSE as 0020.HK.

What our checks show for 0020.HK

Red flags

• Operating profit does not cover the interest bill (-1.1x): interest is paid from cash or new debt.
• The gross margin fell by 28.7 points, to 41%: costs are rising faster than prices.
• Earnings per share fell 37% a year over the last 3 years.
• The company is losing money: the net margin is -35.2%.
• Free cash flow is negative (-70.4% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 93% from a peak. Would you have held through that?
• Beta 1.63: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect earnings per share to shrink about 35.5% a year.
• The price swings a lot: 49.1% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• The share count grew by 15.1% in 2 years: each shareholder owns a smaller slice.

Strengths

• Debt is low: 0.43x equity.
• The net margin rose by 330 points over 5 years, to -35.2%.
• Analysts expect revenue to grow about 27.5% a year over the next years.
• Analysts expect the net margin to improve by 39.8 points from today's -35.2%.
• Actively traded: about 426 million shares a day.

Similar companies

ROP · WDAY · TEAM · VEEV · ADSK · MSTR

Questions

What grade does SenseTime Group Inc. (0020.HK) have?

In our weekly check, SenseTime Group Inc. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 10 pass, warnings: 4, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0020.HK stock?

This week's biggest flags for SenseTime Group Inc.: Weak interest cover, Gross margin falling, Weak EPS growth. In total 13 of 23 checks show a warning or a red flag.

What does SenseTime Group Inc. do?

SenseTime Group Inc. is a Technology company (Software - Application) based in China, listed on HKSE as 0020.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis