Atour Lifestyle Holdings (NASDAQ:ATAT) Presents an Affordable Growth Opportunity

Investors looking for growth chances at fair prices often use screening methods that find companies with good expansion potential that are not too costly. The "Affordable Growth" method focuses on stocks showing solid growth paths while keeping good financial condition and earnings, all at prices that do not seem high. This system mixes the search for expansion with careful price thinking, trying to find companies set for ongoing achievement without paying top dollar.

Atour Lifestyle Holdings Ltd. (NASDAQ:ATAT) offers a notable example inside this investment structure. The Chinese hotel business, which started trading in November 2022, has built a varied collection of lifestyle hotel names like Atour, Atour S, and Atour Light in about 834 hotels across 151 Chinese cities. The company's basic picture suggests it deserves more look from investors using growth-at-fair-price methods.

Growth Path

The company's expansion numbers show why it fits as a growth option. Atour Lifestyle displays notable past growth speeds together with good future estimates:

• Revenue rose by 37.80% over the last year with an average yearly growth speed of 35.84% over recent years
• Earnings Per Share increased by 36.58% in the last year with a remarkable 138.03% average yearly growth over past times
• Future guesses plan EPS growth of 24.10% and revenue growth of 25.84% each year

These growth speeds are much higher than industry averages and show the company is effectively using chances within China's hotel field. The mix of good past results and large expected future growth makes ATAT noticeable to growth-focused investors.

Price Assessment

While growth features are interesting, the affordable growth plan stresses fair pricing. Atour Lifestyle shows a varied but mostly acceptable price view:

• The company sells at a P/E ratio of 26.53, nearly matching the S&P 500 average of 26.89
• Future P/E of 18.94 looks good next to the S&P 500's 22.99 and shows a lower price than industry friends
• The PEG ratio, which changes the P/E for growth hopes, indicates the stock could be fairly priced considering its growth outlook

The price score of 5/10 shows that while the stock is not cheap, it gives fair payment for the quality and growth investors get. For growth-at-fair-price plans, this even price view is exactly what screeners want, companies growing fast but not selling at high multiples.

Earnings and Financial Condition

Beyond growth and price, the affordable growth method stresses lasting business models through good earnings and financial condition. Atour Lifestyle does well in these parts with high scores of 9/10 for both earnings and condition:

Earnings Strengths:

• Return on Invested Capital of 25.29% is better than 94.74% of industry friends
• Profit margin of 16.53% is higher than 90.98% of rivals
• Operating margin of 22.23% and gross margin of 83.24% are near the top of industry leaders

Financial Condition Signs:

• Altman-Z score of 7.11 shows very little failure risk
• Debt-to-equity ratio of 0.02 shows almost no use of borrowing
• Current ratio of 2.10 and quick ratio of 2.05 display good cash position

These measures show a company that not only grows fast but does so with good earnings while keeping a careful money structure. This mix lowers investment risk and helps lasting expansion, key parts for affordable growth plans looking for companies that can pay for growth from inside without too much debt.

The full fundamental analysis report gives more information on these measures and how Atour Lifestyle matches up inside its industry. Investors can check single parts of the growth, price, earnings, and condition scores to learn the exact reasons for the total review.

For investors curious about finding like chances, the Affordable Growth screen often finds companies showing this mix of good growth, fair price, and sound basics. This organized method helps investors quickly locate possible options inside the wider market space.

Disclaimer: This article gives real information based on basic data and should not be seen as investment guidance. Investors should do their own study and think about their personal money situation before making investment choices.