XPeng Inc. (9868.HK) stock analysis

In our weekly check, XPeng Inc. is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 12 pass, warnings: 2, red flags: 8.

About XPeng Inc.

XPeng Inc. is a Consumer Cyclical company (Auto - Manufacturers) based in China, listed on HKSE as 9868.HK.

What our checks show for 9868.HK

Red flags

• Debt is high against equity (1.51x). That limits room in a downturn.
• Operating profit does not cover the interest bill (-11x): interest is paid from cash or new debt.
• Earnings per share fell 32.9% a year over the last 3 years.
• The company is losing money: the net margin is -4.1%.
• The price swings a lot: 50.2% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 88% 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

• Free cash flow is only 0% of revenue.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 19 points over 5 years, to -4.1%.
• The gross margin is 20.7% and has risen by 8.2 points: pricing power is holding.
• Analysts expect revenue to grow about 25.9% a year over the next years.
• Analysts expect the net margin to improve by 6.4 points from today's -4.1%.
• Revenue grew 40.8% a year over the last 3 years.
• Actively traded: about 11.1 million shares a day.

Next earnings report: 2026-11-24

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Questions

What grade does XPeng Inc. (9868.HK) have?

In our weekly check, XPeng Inc. is graded C (A to F). Of 22 checks on debt, profit, cash flow and trend: 12 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 9868.HK stock?

This week's biggest flags for XPeng Inc.: High debt, Weak interest cover, Weak EPS growth. In total 10 of 22 checks show a warning or a red flag.

What does XPeng Inc. do?

XPeng Inc. is a Consumer Cyclical company (Auto - Manufacturers) based in China, listed on HKSE as 9868.HK.

When does XPeng Inc. report earnings next?

The next earnings report is expected on 2026-11-24. 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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