Hesai Group (HSAI)
Valuation Overview•Is Hesai Group Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 63/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
HSAI struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($705M) and minimal debt risk.
The company is driving exceptional top-line expansion (36.0% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (4.1%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.0B | +45.8% | +36.0% | +48.8% | — | |
| EBITDA | $160.6M | — | — | — | — | |
| Net Income | $153.2M | +525.8% | — | — | — | |
| EPS (Diluted) | $0.91 | +463.3% | — | — | — | |
| Free Cash Flow | $0.00 | +10.0% | +41.5% | +15.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 41.8% | 39.9% | 42.4% | 48.5% |
| Operating Margin | 4.1% | -12.1% | -20.9% | -24.5% |
| Net Margin | 14.4% | -5.3% | -15.0% | -19.3% |
| FCF Margin | — | -11.7% | -36.8% | -40.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.03 | $0.02 | -42.7% | ||
| Q1'26 | $0.15 | $0.13 | -15.3% | ||
| Q4'25 | $0.22 | $0.25 | +15.6% | ||
| Q3'25 | $0.06 | $0.04 | -30.1% | ||
| Q2'25 | $-0.02 | $-0.02 | -10.7% | ||
| Q1'25 | $0.20 | $0.15 | -23.5% | ||
| Q4'24 | $-0.02 | $-0.05 | -150.0% | ||
| Q3'24 | $-0.06 | $-0.05 | +11.0% |
Total return is -7.4% (1Y), lagging the benchmark by -32.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -29.9% | -39.2% | — |
| 1Y | -7.4% | -32.4% | — |
| 3YCAGR | +21.0% | +1.9% | — |
| 5YCAGR | -4.3% | -16.6% | — |
| 10YCAGR | -2.2% | -15.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Hesai Group (HSAI) valuation, health, and returns.
Hesai Group is estimated to be fairly valued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $0.00)
Hesai Group has multiple valuation anchors: DCF Intrinsic Value: $0.00 | Peer Relative Fair Value: $50.64 | Wall Street Analyst Target: $31.50 (implying +86.5% upside). A convergence of these signals offers higher conviction.
Hesai Group displays good financial health with a composite quality score of 63/100, supported by a Altman Z-Score of 1.0 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 1.8%.
Hesai Group does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Hesai Group's current growth trajectory is Accelerating. The company achieved +45.8% 1Y revenue growth and +463.3% 1Y EPS growth, compared to its 3Y revenue CAGR of +36.0%.
Wall Street consensus is Buy based on 3 analysts, beating EPS expectations in 33% of recent quarters with a -2-quarter streak. The consensus price target represents a +86.5% change from current levels.
Investment risks for Hesai Group include: -49.6% 1-year max drawdown, high beta (2.87x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 2.87x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.