ATOUR LIFESTYLE HOLDINGS-ADR (NASDAQ:ATAT) Emerges as a Top Affordable Growth Stock

Investors looking for growth chances at fair prices often use screening methods that find companies with good expansion possibilities while keeping solid financial basics. The Affordable Growth method focuses on stocks showing strong growth paths, good profitability, and stable financial conditions, all while being priced at levels that do not completely reflect their future prospects. This system tries to capture the benefits of growth investing while reducing risk through fundamental review and price discipline.

ATOUR LIFESTYLE HOLDINGS,ADR (NASDAQ:ATAT) appears as an interesting option through this screening view, working as a lifestyle hotel brand developer with a large presence across China. The company keeps a network of about 834 hotels in 151 cities, with different brand options including Atour, Atour S, and several theme-based ideas aimed at various market parts.

Growth Path

ATAT shows very good growth features that are central to its attraction for affordable growth investors. The company's expansion numbers show a business in fast acceleration, with both past results and future plans supporting ongoing speed.

• Revenue growth of 37.80% over the last year, adding to a five-year average yearly growth rate of 35.84%
• Earnings per share rising by 36.58% per year, with a notable 138.03% average yearly growth over recent years
• Forward estimates pointing to continued expansion with expected EPS growth of 24.10% and revenue growth of 25.84% each year

These growth levels are much higher than industry averages and give the basic reason for investor attention, especially when looked at together with the company's fair price multiple.

Price Assessment

The price view shows a detailed but finally interesting case for ATAT as an affordable growth option. While some standard measures may suggest higher pricing, the situation shows a more positive evaluation when growth outlooks are included.

• Current P/E ratio of 26.17 matches S&P 500 averages but seems fair given growth levels
• Forward P/E of 18.60 looks good compared to both industry similar companies and wider market measures
• PEG ratio study suggests the stock may be priced low relative to its growth path
• Price-to-free cash flow measures show the company trading lower than 65% of industry rivals

This price picture supports the affordable growth idea by showing that investors are not paying too much for ATAT's growth possibility, making a good risk-reward situation.

Profitability Quality

ATAT's profitability numbers highlight the quality of its growth, showing that expansion is turning well into bottom-line outcomes. The company's effectiveness in changing revenue to profits improves the investment case notably.

• Return on invested capital of 25.29% puts ATAT in the top 5% of industry similar companies
• Profit margins of 16.53% are higher than 90% of rivals, with steady margin growth over recent times
• Operating margins of 22.23% show strong operational effectiveness
• Very good gross margins of 83.24% point to pricing ability and cost control benefits

These profitability measures give trust that the company's growth is lasting and well managed, lowering execution risk for investors.

Financial Condition

The company's balance sheet quality gives a stable base for continued growth without too much financial risk. ATAT keeps financial numbers that suggest steadiness and operational flexibility.

• Altman-Z score of 7.03 shows very low bankruptcy risk and does better than 92% of industry similar companies
• Little debt use with a debt-to-equity ratio of 0.02, better than 86% of rivals
• Strong cash position with current ratio of 2.10 and quick ratio of 2.05
• Excellent debt-to-free-cash-flow ratio of 0.04, suggesting fast debt payback ability

This financial condition supports the affordable growth plan by making sure the company can pay for its expansion from within and handle possible economic challenges.

The mix of these points, strong growth, fair price, high profitability, and financial steadiness, places ATAT as a fascinating option for investors using affordable growth systems. The company's ability to provide expansion while keeping basic strength makes an interesting investment picture that balances growth possibility with risk control.

For investors wanting to find similar chances, other affordable growth options can be viewed through our dedicated stock screener that uses similar basic rules.

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Disclaimer: This analysis is based on fundamental data and screening systems for information only. It does not form investment advice, suggestion, or support of any security. Investors should do their own study and talk with financial advisors before making investment choices. Past results do not ensure future outcomes, and all investments have risk including possible loss of original money.