ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) – A Chinese Hotel Stock With Strong Growth and Sound Fundamentals

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.

Our Affordable Growth screener lists more stocks with similar characteristics. For a deeper look, review the full fundamental report on ATAT.

Disclaimer

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.