Cambricon Technologies Corporation Limited (688256.SS) stock analysis

In our weekly check, Cambricon Technologies Corporation Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 7.

About Cambricon Technologies Corporation Limited

Cambricon Technologies Corporation Limited is a Technology company (Semiconductors) based in China, listed on SHH as 688256.SS.

What our checks show for 688256.SS

Red flags

• The gross margin fell by 4.8 points, to 54.4%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect the net margin to shrink by 15.7 points from today's 36.5%.
• Free cash flow is negative (-10.8% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 63.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The price is 120 times earnings (P/E): the market already pays for a lot of future growth.
• Recovering from its deepest fall took about 2.3 years.

Strengths

• Net debt is only 1.1x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 185 times over.
• The net margin rose by 151 points over 5 years, to 36.5%.
• Analysts expect earnings per share to grow about 88% a year over the next years.
• Analysts expect revenue to grow about 114% a year over the next years.
• Revenue grew 150% a year over the last 3 years.

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Questions

What grade does Cambricon Technologies Corporation Limited (688256.SS) have?

In our weekly check, Cambricon Technologies Corporation Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 688256.SS stock?

This week's biggest flags for Cambricon Technologies Corporation Limited: Gross margin falling, Profits not backed by cash, Margins expected to shrink. In total 9 of 24 checks show a warning or a red flag.

What does Cambricon Technologies Corporation Limited do?

Cambricon Technologies Corporation Limited is a Technology company (Semiconductors) based in China, listed on SHH as 688256.SS.

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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