Meituan (3690.HK) stock analysis

In our weekly check, Meituan is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 7.

About Meituan

Meituan is a Consumer Cyclical company (Specialty Retail) based in China, listed on HKSE as 3690.HK.

What our checks show for 3690.HK

Red flags

• Operating profit does not cover the interest bill (-17.2x): interest is paid from cash or new debt.
• Weak EPS growth
• The company is losing money: the net margin is -10.1%.
• Free cash flow is negative (-7.1% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 86% from a peak. Would you have held through that?
• 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

• The price swings a lot: 40.4% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.57x equity.
• The net margin rose by 3.1 points over 5 years, to -10.1%.
• The gross margin is 28.6% and has risen by 4.9 points: pricing power is holding.
• Analysts expect the net margin to improve by 17.5 points from today's -10.1%.
• Revenue grew 20.1% a year over the last 3 years.
• A large company: market value $56.38 billion.

Next earnings report: 2026-11-27

Similar companies

BABA · PDD · MELI · ATD.TO · AMZN · ORLY

Questions

What grade does Meituan (3690.HK) have?

In our weekly check, Meituan is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3690.HK stock?

This week's biggest flags for Meituan: Weak interest cover, Weak EPS growth, Thin margins. In total 9 of 22 checks show a warning or a red flag.

What does Meituan do?

Meituan is a Consumer Cyclical company (Specialty Retail) based in China, listed on HKSE as 3690.HK.

When does Meituan report earnings next?

The next earnings report is expected on 2026-11-27. We re-run the checks every week, so the grade can change after it.

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 2026-10-24

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