ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) was selected by our Affordable Growth screener, which identifies stocks with solid growth potential, reasonable valuations, and healthy financials. The company operates a growing portfolio of lifestyle-themed hotels across China and demonstrates strong fundamentals.
Growth Prospects
Revenue grew 43.38% in the past year, with a 3-year average growth of 35.84%.
Earnings Per Share (EPS) increased 37.89% year-over-year, with a 3-year annualized growth of 138.03%.
Analysts expect future EPS growth of 23.23% and revenue growth of 24.15%.
Valuation
P/E ratio of 25.85 is in line with industry peers but below the S&P 500 average (27.18).
Forward P/E of 18.67 suggests a more attractive valuation compared to both industry and market averages.
Price/Free Cash Flow ratio is cheaper than 71.97% of industry competitors.
Financial Health & Profitability
Strong balance sheet: Debt-to-Equity ratio of 0.02 and Altman-Z score of 7.05 indicate low bankruptcy risk.
High Return on Equity (38.30%) and Return on Invested Capital (22.51%) outperform most industry peers.
Profit margin of 16.41% ranks in the top 10% of the Hotels & Leisure sector.
This is not investing advice. The analysis reflects observations at the time of writing, but market conditions change. Always conduct your own research before making investment decisions.