ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) – A Strong Growth Stock with Reasonable Valuation

ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) was identified as an affordable growth candidate by our stock screener. The company operates a growing portfolio of lifestyle hotels in China and demonstrates strong financial metrics, making it an interesting option for investors seeking growth at a reasonable price.

Growth Prospects

• Revenue Growth: ATAT reported a 43.4% increase in revenue over the past year, with a three-year average growth rate of 35.8%.
• Earnings Expansion: Earnings per share (EPS) surged by 37.9% in the last year, with an impressive three-year average annual growth of 138%.
• Future Expectations: Analysts project EPS growth of 23.2% and revenue growth of 22.9% annually over the next few years.

Valuation

• P/E Ratio: ATAT trades at a P/E of 22.5, slightly below the industry average of 32.4.
• Forward P/E: The forward P/E of 15.2 is more attractive, trading below both the industry and S&P 500 averages.
• PEG Ratio: A low PEG ratio suggests the stock is reasonably priced relative to its expected earnings growth.

Profitability & Financial Health

• High Margins: Gross margin stands at 84.2%, well above industry peers, while operating margin is 21.5%.
• Strong Returns: Return on equity (ROE) is 38.3%, and return on invested capital (ROIC) is 22.5%, both ranking near the top of the sector.
• Solid Balance Sheet: The company has minimal debt (Debt/Equity of 0.02) and strong liquidity metrics, including a current ratio of 2.3.

For a deeper look at ATAT’s fundamentals, review the full analysis report.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.