Luckin Coffee Inc
Luckin Coffee Inc - ADR is a China-based company specializing in the operation of coffee stores, offering a wide range of coffee beverages and related products. The company sources high-quality Arabica coffee beans from various suppliers and collaborates with World Barista Champion teams to develop its coffee recipes. In addition to coffee, Luckin Coffee provides juices and light meals, partnering with suppliers to expand its product offerings. With a significant presence in the consumer cyclical sector, Luckin Coffee serves a broad customer base through its extensive network of stores. The company is recognized for its innovative approach to coffee retail, leveraging technology and strategic partnerships to enhance customer experience and operational efficiency. Luckin Coffee plays a notable role in the global coffee market, contributing to the growth and evolution of coffee culture in China and beyond.
$33.00
-$0.58 (-1.73%)
EOD Oct 21, 2026
10.50% operating margin is respectable but not wide. ROIC at 17.45%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 43.0%, still solid.
Even for strong businesses, today's 19x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
18.7x earnings, 20.7x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
¥55.95B
▲ +43.0% YoY
Net Income (TTM)
¥3.79B
▲ +22.8% YoY
Op. Margin
9.91%
▲ +0.4pp YoY
ROIC
17.45%
▼ -0.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
¥3.43B
▲ +91.5% YoY
Op. Cash Flow (TTM)
¥6.05B
▲ +54.8% YoY
Net Debt
-¥937M
Net Cash Position
Cash & Equiv.
¥8.20B
3Y CAGR: +54.8%
Continue Research
Is Luckin Coffee (LKNCY) overvalued?
At a P/E of 18.7 and a price-to-free-cash-flow of 20.7, Luckin Coffee (LKNCY) trades below a two-stage DCF intrinsic value of about CNY 540.42 per share, so at CNY 33.00 the stock looks undervalued (1,537.6% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Luckin Coffee scores 78/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Luckin Coffee's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about CNY 540.42 per share for LKNCY, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around CNY 405.32. At today's CNY 33.00, that puts the stock about 1,537.6% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Luckin Coffee a high-quality business?+
Luckin Coffee scores 78 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 9.9% operating margin and a 17.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Luckin Coffee a good stock to buy right now?+
That depends on valuation and quality together, not either alone. LKNCY currently trades below its estimated intrinsic value and scores 78/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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