| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 86 | 12.2x | 17.3x | Top tier | |
Growth | 31 | -3.4% | 7.1% | Bottom tier | |
Quality | 78 | 11.1% | 4.5% | Top tier | |
Safety | 91 | — | 2.6x | Top tier | |
Capital Return | 98 | 7.67% | 0.06% | Top tier | |
Momentum | 58 | -30.3% | -1.6% | Around median | |
Sentiment | 72 | 4 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
7% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Chagee operates a tea beverage brand focused on whole-leaf tea and fresh milk, generating revenue through a network combining franchised and company-owned stores. In quarter 2 of fiscal year 2026 ended 2026-06-30, the network comprised 7,639 stores, including 6,756 franchised stores and 883 company-owned stores, with franchised store revenue accounting for 72.5% of the revenue reported on the call. The sustainability of its business therefore depends on product appeal, store economics, and continued consumer demand, with a growing presence of directly operated stores within its business model.
According to EL7 data, revenue in quarter 2 of fiscal year 2026 ended 2026-06-30 was approximately 3.4 billion yuan, up 2.2% compared with the same quarter of the previous fiscal year, while net income reached 465.9 million yuan versus 69.5 million yuan in quarter 2 of fiscal year 2025. The operating margin calculated by EL7 reached 15.4% versus 3.2% in the same quarter of the previous fiscal year, while diluted earnings per share were 2.44 yuan. These results show that the most significant improvement came from profitability and cost control, as revenue of 3.5 billion yuan in quarter 1 of fiscal year 2026, according to EL7 data, was higher than in the following quarter.
Chagee's strategy combines stimulating demand within China with international expansion. At the end of quarter 2 of fiscal year 2026 ended 2026-06-30, Greater China had 7,240 stores versus 399 stores outside it. The company launched 17 products during that quarter, expanding its range into new beverages and gelato, while gross merchandise value outside Greater China grew 114.3% compared with the same quarter of the previous fiscal year and 18.2% compared with the previous quarter. However, management described fiscal year 2026 as a year of adjustment and stabilization, prioritizing the quality of growth over the speed of expansion.
Q2 FY2026
When: 2026-11-27
Year-over-year revenue growth exceeding the 2.2% benchmark recorded in quarter 2 of fiscal year 2026 ended 2026-06-30
Sustaining the operating margin calculated by EL7 at the 15.4% benchmark recorded in quarter 2 of fiscal year 2026 ended 2026-06-30
The indicative value based on analyst targets is 15 dollars, within a range of 10 dollars to 16 dollars, reflecting growth expectations. However, confidence is low because it relies on one analyst, and this method is inherently inclined toward optimism. The industry-multiple value is 12 dollars, within a range of 4.44 dollars to 26 dollars, valuing Chagee in line with its peers using a median sales multiple of 1.2 across 51 companies. The no-growth value is 11 dollars at a discount rate of 12.6%, measuring the value of current after-tax operating profit if it remains constant forever. The industry-multiple value and the no-growth value are close, while the analyst target is higher because it incorporates growth expectations. The wide industry-multiple range indicates substantial variation among peer valuations.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Chagee combines franchised and company-owned stores to sell tea beverages, including BOYA Tea Latte and fresh-milk tea ranges. At the end of quarter 2 of fiscal year 2026 ended 2026-06-30, the network included 6,756 franchised stores and 883 company-owned stores. Franchised store revenue accounted for 72.5% of the revenue reported on that quarter's call, so the strength of the franchise network remains a core element of the business model.
According to EL7 data, revenue reached approximately 3.4 billion yuan in quarter 2 of fiscal year 2026 ended 2026-06-30, growing 2.2% compared with the same quarter of the previous fiscal year. In contrast, net income reached 465.9 million yuan versus 69.5 million yuan in the same quarter of the previous fiscal year, and the operating margin calculated by EL7 rose to 15.4% versus 3.2%. This makes improved efficiency and cost control a primary explanation for the earnings improvement, while sales acceleration requires separate evidence.
Automated analysis for informational purposes only — not investment advice.
Last 12 months to 2026-06-30
When: 2026-08
Same-store sales growth turning above 0% in August 2026 as management expected
International gross merchandise value grew 114.3% in quarter 2 of fiscal year 2026 ended 2026-06-30 compared with the same quarter of the previous fiscal year, and 18.2% compared with the previous quarter. The international network reached 399 stores, with entry into South Korea and a presence in markets including Malaysia, Singapore, and the United States. However, Greater China had 7,240 stores at the end of that quarter, so international diversification remains a promising path that requires continued expansion before it changes the business's geographic concentration.
Chagee launched 17 products in quarter 2 of fiscal year 2026 ended 2026-06-30, its highest number of launches in a single quarter, according to management. By August 2026, gelato had reached more than 190 stores, with an increase of more than 20% in offline gross merchandise value at pilot stores. These trials support expanding consumption occasions and attracting new customers, but pilot store results alone do not establish that the same impact will be achieved across the network.
Cash and short-term investments totaled 6.6 billion yuan versus total debt of 1.4 billion yuan in quarter 2 of fiscal year 2026 ended 2026-06-30, according to EL7 data, providing financial backing for expansion. However, debt rose 87.7% compared with the same quarter of the previous fiscal year and may include lease liabilities under the provider's definition. The diluted share count reached 193.0 million shares versus 183.5 million shares in the same quarter of the previous fiscal year, so monitoring debt and the share base remains necessary even as repurchases are executed.
The expected earnings announcement date is 2026-11-27. Revenue growth of 2.2% compared with the same quarter of the previous fiscal year and the operating margin calculated by EL7 of 15.4% in quarter 2 of fiscal year 2026 ended 2026-06-30 provide two benchmarks for assessing business developments. Management's expectation, announced on 2026-08-28, that same-store sales growth would turn positive in August 2026 also warrants confirmation, because a recovery at existing stores would strengthen the evidence of improving demand.