Luxshare Precision Industry Co., Ltd. (002475.SZ) stock analysis

In our weekly check, Luxshare Precision Industry Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About Luxshare Precision Industry Co., Ltd.

Luxshare Precision Industry Co., Ltd. is a Technology company (Hardware, Equipment & Parts) based in China, listed on SHZ as 002475.SZ.

What our checks show for 002475.SZ

Red flags

• Operating cash flow is only 0.45x net profit: part of the reported profit does not arrive as cash.
• The net margin is only 4.6%: little room if costs rise.
• Free cash flow is negative (-2.9% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 50.6% annual volatility. Expect large ups and downs.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 2.3x a year of EBITDA (debt/equity 1.12). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 0.6 points, to 11.6%: costs are rising faster than prices.
• The stock has fallen as much as 60% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 2.3 years.

Strengths

• Operating profit covers interest 9.8 times over.
• Analysts expect earnings per share to grow about 58.6% a year over the next years.
• Analysts expect revenue to grow about 17.1% a year over the next years.
• Revenue grew 22.8% a year over the last 3 years.
• Earnings per share grew 11.1% a year over the last 3 years.
• Net profit grew 25.6% a year over the last 3 years.

Similar companies

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Questions

What grade does Luxshare Precision Industry Co., Ltd. (002475.SZ) have?

In our weekly check, Luxshare Precision Industry Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 002475.SZ stock?

This week's biggest flags for Luxshare Precision Industry Co., Ltd.: Profits not backed by cash, Thin margins, Weak free cash flow. In total 9 of 25 checks show a warning or a red flag.

What does Luxshare Precision Industry Co., Ltd. do?

Luxshare Precision Industry Co., Ltd. is a Technology company (Hardware, Equipment & Parts) based in China, listed on SHZ as 002475.SZ.

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

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