One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Cheche Group Inc.
CCG · NCM · Communication Services · Internet Content & Information
Current price
$11.30
52-week range
$0.34 - $18.16
Market cap
$28.31M
Balance sheet
Distressed
-8.34x Concerning
Net debt $3.48M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
2 Risks
0 rewards · 2 risks
- Risk Return on equity was -11.2% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -3.6% to -5.7% over 3 years.
What this company does
Cheche Group Inc.
Cheche Group is a technology company in China that creates software to simplify how car insurance is sold and managed, especially for new electric vehicles. It makes money primarily by selling its technology as a service (SaaS, a subscription where customers pay to use software online instead of buying it outright) to insurance companies and car manufacturers. This matters because as China's massive car market continues to shift toward electric vehicles, Cheche's digital tools could become a key part of that industry's insurance process.
How the company got here
Cheche Group Inc. was founded in 2014 with the goal of modernizing the auto insurance industry in China. It started by creating a digital platform to make buying and managing car insurance easier and more transparent for everyone involved. Over the years, the company expanded from just offering insurance online to also providing software and technology to other players in the insurance world, like insurance companies and brokers. A major turning point was its listing on the Nasdaq stock exchange in 2023, which provided more capital (money for investment) to fuel its growth plans. The company has also increasingly focused on the rapidly growing market for new energy vehicles (NEVs), or electric cars.
What it actually does
Think of Cheche Group as a technology company that makes buying and selling car insurance much simpler, especially in China. It provides online tools and services for car owners, insurance companies, and car manufacturers. For drivers, it offers a platform to easily compare and buy insurance policies. For insurance companies and their agents, it provides software that helps them manage their business more efficiently. A big part of its business now involves creating specialized insurance services for electric cars, working directly with the car makers.
Digital Insurance Transaction Services
This is the company's core business and how it started. Through products like 'Easy-Insur', Cheche provides an online marketplace where consumers can shop for and purchase auto insurance policies from various insurance carriers. The company makes money by earning commissions from the insurance companies for each policy sold through its platform. This segment also includes specialized insurance solutions for New Energy Vehicle (NEV) manufacturers, helping them offer built-in insurance services to their car buyers. This part of the business represents the bulk of the company's activity.
Insurance SaaS Solutions
This part of the company provides 'Software-as-a-Service' (SaaS), which is like renting out its powerful software to others in the insurance industry. One product, 'Digital Surge', is designed for insurance intermediaries (agents and brokers) to help them digitize their operations. Another, 'Sky Frontier', is an AI-based software for the insurance carriers themselves to help with things like setting prices. Instead of a one-time sale, customers typically pay a recurring fee to use this software, providing a steady stream of revenue for Cheche. This is a smaller but growing part of the company's business.
What management is betting on now
The company is heavily focused on the electric car market, which it calls New Energy Vehicles (NEVs). Management is investing in artificial intelligence (AI) to create more accurate and personalized insurance pricing for these vehicles, through initiatives like its 'Cheche Score'. Another key priority is international expansion, aiming to support Chinese automakers as they sell more cars globally by providing digital insurance services in new markets. More recently, the company announced a strategic move into the green energy sector, with a proposed investment in a residential energy storage business, seeing a future where electric vehicles and home energy systems are connected.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $11.30
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $3.5M. Interest coverage -8.3x.
Net debt
$3.48M
Interest coverage
-8.34x
Cheche Group Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
CCG
BASELINE
Cheche Group Inc.
Total debt $23.16M Interest coverage -8.34x This is the baseline the peer rows are being compared against.
Total debt $398.02M Interest coverage 1.66x This peer still has a real interest-payment cushion, while CCG does not.
Total debt $1.94M Interest coverage 18.63x This peer still has a real interest-payment cushion, while CCG does not.
Total debt $132.17M Interest coverage 6.37x This peer still has a real interest-payment cushion, while CCG does not.
Total debt $372.84M Interest coverage 3.14x This peer still has a real interest-payment cushion, while CCG does not.
Total debt $12.15M Interest coverage 2.08x This peer still has a real interest-payment cushion, while CCG does not.
What you should know
The case for and against CCG
0 Rewards
2 Risks
Rewards
Risks
-
Return on equity was -11.2% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -3.6% to -5.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-20.18x
P/B
0.59x
P/S
0.01x
EV/EBITDA
-1.20x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
6.3%
Operating margin
-5.7%
Net margin
-1.4%
ROE
-11.2%
ROA
-2.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
1.30x
Quick ratio
1.15x
Total debt
$23.16M
Total cash
$19.68M
Growth
How the business has been compounding
Revenue TTM
$379.83M
Revenue 5Y CAGR
4.0%
EPS TTM
-2.29
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-6.05M
Free CF TTM
$-6.06M
FCF margin
-1.6%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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