CHA

Consumer Defensive

Chagee Holdings Limited American Depositary Shares · Beverages - Non-Alcoholic · $2B

UQS Score — Balanced Preset
61.0
Good

Chagee Holdings Limited American Depositary Shares scores 61.0/100 using the Balanced preset.

UQS vs Consumer Defensive Sector
CHA
61.0
Sector avg
38.4
Quality
Good
Moat
Weak
Growth
Neutral
Risk
Strong
Valuation
Attractive

What is Chagee Holdings Limited American Depositary Shares?

Chagee Holdings Limited operates and franchises teahouses under the CHAGEE brand, primarily across China with growing international presence. The company brings a modern approach to traditional tea culture through a scalable retail and franchise model.

Chagee generates revenue by selling tea beverages directly through company-owned teahouses and by supplying franchisees with tea drinks, raw materials, packaging, and teahouse equipment. The franchise model allows rapid network expansion while keeping capital requirements manageable. Chagee also operates through online platforms, broadening its reach beyond physical locations. This dual channel — brick-and-mortar teahouses plus digital ordering — supports both brand visibility and recurring revenue from franchise partners.

Chagee was founded in 2017 and is headquartered in Shanghai, China.

  • CHAGEE-branded tea beverages served in teahouses
  • Franchise licensing and teahouse operator support
  • Raw materials and tea ingredients for franchisees
  • Branded packaging and teahouse equipment supply
  • Online platform sales and digital ordering

Is CHA a Good Stock to Buy?

UQS Score rates CHA as Good overall, reflecting a balanced but nuanced profile across its five quality pillars.

The most notable strength in CHA's profile is its Risk pillar, which rates Strong — suggesting the company carries relatively low financial or operational risk compared to peers in the Consumer Defensive sector. Its Valuation pillar is rated Attractive, meaning the market price may not fully reflect the underlying business quality. The Quality pillar also holds a Good rating, pointing to reasonable business fundamentals.

The Moat and Growth pillars both rate Weak, indicating limited evidence of durable competitive advantages and subdued near-term expansion signals — areas worth watching for long-term investors.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does CHA pay dividends?

Yes — Chagee Holdings Limited American Depositary Shares pays a dividend.

Chagee Holdings pays a regular dividend, which is relatively uncommon for a company of its size and age in the consumer beverage space. This signals a degree of financial confidence from management. Investors seeking income alongside exposure to China's growing tea culture may find this combination worth examining. Check the company's investor relations page for the current dividend rate and payment schedule.

When does CHA report earnings?

Chagee Holdings reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

The company's Good Quality pillar rating suggests its financial results have been reasonably consistent, even as Growth remains a concern. Investors should track whether franchise expansion translates into improving top-line trends over coming quarters.

For the most recent quarter's results and upcoming reporting dates, visit Chagee Holdings' official investor relations page.

CHA Price History

-66.3% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Chagee Holdings Limited American Depositary Shares?

$
Today it would be worth
$3,475
That's a -65.3% total return, or -65.3% annualized.

Based on Chagee Holdings Limited American Depositary Shares's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

CHA Long-term Outlook

Based on CHA's UQS pillar profile, the fundamental outlook is cautiously constructive. The Strong Risk rating suggests the business is on stable financial footing, which provides a foundation for navigating the competitive tea and beverage market. However, the Weak Growth pillar indicates that meaningful revenue or earnings acceleration may not be imminent. The Attractive Valuation label suggests the stock may offer a margin of safety relative to its current fundamentals, which could be relevant if growth trends improve.

Growth drivers

  • Franchise network expansion across China and international markets
  • Growing consumer demand for premium tea beverages in Asia
  • Online platform development broadening customer reach

Key risks

  • Weak Moat rating signals limited pricing power or brand differentiation
  • Weak Growth pillar points to near-term expansion uncertainty
  • Competitive intensity in China's tea and beverage retail market

CHA vs Peers

Chagee operates in the broader consumer beverage space alongside several publicly traded peers, each with a distinct business focus.

LAS-A.TOCHA scores higher
Lassonde Industries Inc.

Lassonde is a North American juice and beverage producer focused on private-label and branded fruit drinks, contrasting with Chagee's tea-focused franchise model in Asia.

COCOSimilar UQS
The Vita Coco Company, Inc.

Vita Coco specializes in coconut water and natural beverages distributed through retail channels, competing in the health-drink segment rather than the teahouse franchise space.

FIZZCHA scores higher
National Beverage Corp.

National Beverage markets sparkling water and flavored drinks under brands like LaCroix, operating primarily in the US mass-market retail channel rather than franchise teahouses.

Frequently Asked Questions

What does Chagee Holdings do?

Chagee Holdings owns, operates, and franchises teahouses under the CHAGEE brand in China and internationally. The company sells tea beverages directly to consumers and supplies franchisees with raw materials, packaging, and equipment. It also operates through online platforms to extend its reach beyond physical locations.

Does CHA pay dividends?

Yes, Chagee Holdings pays a regular dividend. This is relatively uncommon for a young, growth-oriented consumer brand. Investors should check the company's investor relations page for the current dividend rate and payment schedule, as these details can change.

When does CHA report earnings?

Chagee Holdings reports earnings on a quarterly cadence, in line with standard practice for US-listed companies. For exact upcoming reporting dates, refer to the company's investor relations page or a financial calendar service.

Is CHA a good stock to buy?

CHA earns a Good overall UQS Score. Its Risk pillar is rated Strong and Valuation is Attractive, which are positive signals. However, the Moat and Growth pillars both rate Weak, meaning competitive durability and near-term expansion are areas of concern. The full pillar breakdown is available to UQS Pro members.

Is CHA overvalued?

CHA's Valuation pillar is rated Attractive under the UQS framework, suggesting the stock may not be overpriced relative to its fundamentals. That said, valuation alone does not determine investment suitability — the Weak Moat and Growth ratings are important context. View the complete analysis with a Pro account.

How does CHA compare to its competitors?

Chagee's closest publicly listed peers — Lassonde Industries, Vita Coco, and National Beverage — each operate in different beverage niches and geographies. Chagee is distinctive for its teahouse franchise model centered on Asian markets. Its Strong Risk and Attractive Valuation ratings may differentiate it from peers, though Moat and Growth lag.

What is CHA's market cap bracket?

Chagee Holdings is classified as a small-cap company. Small-cap stocks can offer growth potential but often carry higher volatility and liquidity risk compared to large- or mega-cap peers. Investors should factor this into their risk assessment.

Who founded Chagee Holdings?

Chagee Holdings was founded in 2017. For detailed information about the founding team and corporate history, the company's official website and investor relations materials are the most reliable sources.

Is CHA a long-term quality investment?

As a long-term quality indicator, CHA's UQS profile is mixed. The Strong Risk and Attractive Valuation pillars are encouraging foundations, but the Weak Moat rating raises questions about whether the business can sustain competitive advantages over time. Long-term quality typically requires a stronger moat. The full analysis is available to Pro members.

What is the main competitive advantage of Chagee Holdings?

Chagee's primary competitive positioning comes from its CHAGEE brand and franchise infrastructure, which allows rapid teahouse expansion with relatively lower capital intensity. However, the UQS Moat pillar rates Weak, indicating that durable competitive advantages have not yet been firmly established in the framework's assessment.

What sector does CHA belong to?

Chagee Holdings is classified in the Consumer Defensive sector. This sector typically includes companies that sell everyday goods and beverages with relatively stable demand, which aligns with Chagee's tea beverage business model targeting habitual consumer consumption.

Is CHA a growth stock or value stock?

Based on its UQS pillar labels, CHA leans toward value characteristics — the Valuation pillar is Attractive while the Growth pillar is Weak. This combination suggests the stock may be priced modestly relative to current fundamentals, but without strong near-term growth signals to drive a re-rating.

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Pro Analysis

CHA — Score History

455055606570Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 24 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202661.065.223.056.983.9100.00.0
May 20, 202661.065.223.056.883.9100.00.0
May 18, 202661.065.223.057.283.9100.00.0
May 16, 202661.065.223.057.183.9100.00.0
May 14, 202661.065.223.057.083.9100.00.0
May 12, 202661.065.223.056.983.9100.0+0.3
May 11, 202660.765.223.056.782.4100.0+1.7
May 10, 202659.058.223.056.782.4100.0+0.1
May 8, 202658.958.223.056.482.499.9-1.8
May 7, 202660.765.223.056.482.4100.0-0.3

CHA — Pillar Breakdown

Quality

65.2/100 (25%)

Chagee Holdings Limited American Depositary Shares shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

56.9/100 (20%)

Chagee Holdings Limited American Depositary Shares demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

83.9/100 (15%)

Chagee Holdings Limited American Depositary Shares carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

100.0/100 (15%)

Chagee Holdings Limited American Depositary Shares appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

23/100 (25%)

Chagee Holdings Limited American Depositary Shares operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CHA.

Score Composition

Quality
65.2×25%16.3
Growth
56.9×20%11.4
Risk
83.9×15%12.6
Valuation
100.0×15%15.0
Moat
23.0×25%5.8
Total
61.0Good

Financial Data

More Stock Analysis

How is the CHA UQS Score Calculated?

The UQS (Unified Quality Score) for Chagee Holdings Limited American Depositary Shares is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Chagee Holdings Limited American Depositary Shares's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Chagee Holdings Limited American Depositary Shares is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.