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, which operates a network of lifestyle hotels in China, demonstrates strong growth metrics while maintaining solid profitability and financial health. Its valuation remains reasonable relative to its industry peers, making it an interesting option for investors seeking growth at a sensible price.

Growth Prospects

ATAT has delivered impressive growth in recent years, with key highlights including:

• Earnings Per Share (EPS) growth of 37.89% over the past year and an average annual growth of 138.03% over the past several years.
• Revenue growth of 43.38% in the last year and an average annual increase of 35.84% historically.
• Analysts expect continued strong performance, with projected EPS growth of 23.09% and revenue growth of 23.87% annually in the coming years.

These figures place ATAT well above industry averages, reinforcing its position as a high-growth company.

Valuation Assessment

Despite its rapid growth, ATAT is not excessively priced:

• The Price/Earnings (P/E) ratio of 22.38 is below the industry average of 33.94, making it cheaper than 65.41% of its peers.
• Its Forward P/E of 16.22 is also more attractive than the industry average of 63.56.
• The PEG ratio, which accounts for growth, suggests the stock is fairly valued given its earnings trajectory.

Financial Health & Profitability

ATAT scores highly in financial stability and profitability:

• Financial Health (9/10): The company has a strong balance sheet, with a Debt-to-Equity ratio of just 0.02, well below industry norms. Its Altman-Z score of 6.44 indicates low bankruptcy risk.
• Profitability (8/10): ATAT boasts a Return on Equity (ROE) of 38.30% and a Profit Margin of 16.41%, both ranking near the top of its sector.

For a deeper look, review the full fundamental analysis report for ATAT.

Our Affordable Growth screener lists more stocks with strong growth and reasonable valuations, updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.