← Back to Stock Screener← Stock Screener

ZYBERNO

Stock Report

Updated Aug 31, 2026

Chagee Holdings Ltd. (CHA)

NASDAQ

$10.80

Chagee Holdings Limited is a Chinese tea beverage company headquartered in Kunming, China, that operates premium fresh-made tea stores under the Chagee (霸王茶姬) brand. The company offers premium ready-to-drink brewed teas with a focus on high-quality Chinese tea ingredients, operating thousands of stores in China and expanding internationally across Southeast Asia. Chagee listed on the NYSE in April 2025.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

41.0/100

WEAK BUSINESS

Chagee Holdings Ltd. (CHA) scores 41/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full CHA quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

+41.2%

Market Underestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full CHA valuation analysis · → View full CHA Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):GOOD (0.35x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):EXCELLENT (79.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Chagee Holdings Ltd. (CHA) stock report — Zyberno Score 41/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, Chagee Holdings Ltd. (CHA) shows a Brina Gap of +41.2%, which strengthens the case: based on the company's ROIC (79.4%) and reinvestment rate (39.9%), the business can fundamentally grow at 31.7% — but the current enterprise value implies the market expects -9.5%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:10.80

Market Cap:$1.75B

Valuation Multiples (2)

P/B Ratio:1.62x

Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$849.08M

Ev Ebitda Ratio:4.00x

Pfcf Ratio:10.00x

Price Action & Momentum (3)

12-1 Momentum:

-43.4% (8th pctile)

📈 Click to view full CHA Momentum analysis →

Momentum Percentile:8 / 100

% of 52-Week High:46.9%

B. Profitability Assessment

Return Metrics (5)

Roic:

79.4%

📊 Click to view full CHA ROIC analysis →

Reinvestment Rate:39.9%

Fundamental Growth Rate (g):31.7%

Market-Implied Growth Rate:-9.5%

Brina Gap:

41.2%

☷ Click to view full CHA Brina Gap analysis →

Margin Analysis (1)

Ebitda Margin:11.5%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:10.1%

C. Log-Linear Regression Growth Trends

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:3.11x

Quick Ratio:3.03x

Cash Ratio:2.67x

Leverage Analysis (3)

Debt To Equity Ttm:0.35x

Debt-to-Equity Ratio:0.35x

Debt To Ebitda:0.86x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:858,056,000.00

Cash And Cash Equivalents:1,087,825,000.00

Long Term Debt:$121.54M

Net Debt:-$905.60M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

$1.85B

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00$192.65M

Bottom Line Performance (3)

$167.47M

Income Before Tax:$231.38M

Ebitda Ttm:212,355,817.00

Operating Expenses (5)

Operating Expenses:1,653,082,000.00

R And D Expense:39,778,006.50

Sga Expense:350,400,000.00

Income Tax Expense:$61.74M

Interest Expense:0.00

Expense Ratios (3)

R And D To Revenue Percentage:2.2%

Sga To Revenue Percentage:19.0%

Ebitda Margin:11.5%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$1.64B

Current Assets:$1.27B

Ppe Net:83,464,000.00

Goodwill:14,012,000.00

Intangible Assets:$1.73M

Liability Structure (4)

Total Liabilities:555,675,000.00

Current Liabilities:407,539,000.00

Long Term Debt:$121.54M

Short Term Debt:$60.68M

Equity & Capital (3)

Equity:$1.08B

Retained Earnings:$555.73M

Common Stock:0.00

Working Capital Items (3)

Accounts Receivable:20,864,000.00

Inventory:32,605,000.00

Accounts Payable:90,059,000.00

Special Items (2)

Contract Liabilities:71,067,371.60

Stock Based Compensation:103,465,000.00

C. Cash Flow Analysis

Operating Activities (2)

$235.10M$175.46M

Investment Activities (1)

Investing Cash Flow:-$117.98M

Financing Activities (3)

Financing Cash Flow:$292.67M

Dividends Paid Ttm:176,327,000.00

Stock Repurchase:31,123,438.22

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:19,703,817.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$1.03

Revenue & Cash Per Share (2)

Sales Per Share Ttm:11.36

Operating Cash Flow Per Share:$1.45

Book Value & Capital (2)

Book Value Per Share:$6.67

Cash Per Share:6.70

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.13x

Working Capital Turnover Ttm:2.15x

Receivables Management (2)

Receivables Turnover Ttm:88.47x

Days Sales Outstanding Ttm:4.13

Inventory Management (2)

Inventory Turnover Ttm:56.61x

Days Inventory Outstanding Ttm:6.45

Payables & Cash Cycle (2)

Days Payable Outstanding:17.81

Cash Conversion Cycle:-7.24

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:100.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:39.9%

Fundamental Growth Rate (g):31.7%

Market-Implied Growth Rate:-9.5%

Brina Gap:

41.2%

☷ Click to view full CHA Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

C. Company Profile & Context

Corporate Information (6)

Symbol:CHA

Company Name:Chagee Holdings Ltd.

Sector:Unknown

Industry:Retail-Eating & Drinking Places

Exchange:NASDAQ

Country:China

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:162.47M

Shares Outstanding Basic:162.47M

Shares Outstanding Diluted:164.71M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 06:26:53 UTC

Data Timestamp:2026-08-31T06:26:53.626073