Xunlei Limited (XNET)
Valuation Overview•Is Xunlei Limited Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 70/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
XNET demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($80M) and minimal debt risk.
The company demonstrates solid revenue growth (10.6% 3Y CAGR) paired with highly explosive earnings growth (537.9% EPS 3Y CAGR). However, profitability remains a major concern with severely compressed operating margins (1.4%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $143.1M | +42.9% | +10.6% | +19.9% | +13.5% | |
| EBITDA | $14.2M | — | +5.3% | — | — | |
| Net Income | -$229.8M | +86405.1% | +265.9% | — | — | |
| EPS (Diluted) | $-18.30 | +87321.1% | +537.9% | — | — | |
| Free Cash Flow | $26.7M | +17.9% | -9.6% | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 47.2% | 48.0% | 47.1% | 47.0% |
| Operating Margin | 1.4% | -1.3% | -0.5% | -11.2% |
| Net Margin | 227.1% | 77.3% | 47.7% | 15.1% |
| FCF Margin | 5.8% | 6.2% | 6.4% | -4.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'25Latest | — | $0.08 | — | ||
| Q3'25 | — | $0.13 | — | ||
| Q2'25 | — | $-0.01 | — | ||
| Q1'25 | — | $0.18 | — | ||
| Q4'24 | — | $0.08 | — | ||
| Q3'24 | — | $0.05 | — | ||
| Q2'24 | — | $0.07 | — | ||
| Q1'24 | — | $0.07 | — |
Total return is +10.2% (1Y), lagging the benchmark by -10.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -33.1% | -40.4% | — |
| 1Y | +10.2% | -10.6% | — |
| 3YCAGR | +38.2% | +19.4% | — |
| 5YCAGR | +0.6% | -10.6% | — |
| 10YCAGR | -0.8% | -14.6% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Xunlei Limited (XNET) valuation, health, and returns.
Xunlei Limited valuation is being assessed using available models.
Valuation anchors are currently not available.
Xunlei Limited displays good financial health with a composite quality score of 70/100, supported by a Altman Z-Score of 1.3 (distress zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 0.7%.
Xunlei Limited returns capital via buybacks instead of dividends, carrying a 1.4% buyback yield and reducing outstanding shares by -0.8% in the last 12 months.
Xunlei Limited's current growth trajectory is Accelerating. The company achieved +42.9% 1Y revenue growth and +87321.1% 1Y EPS growth, compared to its 3Y revenue CAGR of +10.6%.
Wall Street consensus is Buy based on 2 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Xunlei Limited include: -56.8% 1-year max drawdown, high beta (2.00x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 2.00x.
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.