LI AUTO INC - ADR (LI) Stock Fundamental Analysis
NASDAQ:LI - Nasdaq - US50202M1027 - ADR - Currency: USD
LI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Automobiles industry. While LI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LI may be a bit undervalued, certainly considering the very reasonable score on growth This makes LI very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year LI was profitable.
LI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LI reported negative net income in multiple years.
LI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LI (4.95%) is better than 89.19% of its industry peers.
LI has a better Return On Equity (11.33%) than 89.19% of its industry peers.
The Return On Invested Capital of LI (5.68%) is better than 89.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 11.33% | ||
| ROIC | 5.68% |
ROA(3y)3.59%
ROA(5y)1.62%
ROE(3y)8.77%
ROE(5y)4.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 5.56%, LI belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
LI's Operating Margin of 4.86% is amongst the best of the industry. LI outperforms 81.08% of its industry peers.
LI has a better Gross Margin (20.53%) than 81.08% of its industry peers.
In the last couple of years the Gross Margin of LI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 5.56% | ||
| GM | 20.53% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5YN/A
2. Health
2.1 Basic Checks
LI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LI has been increased compared to 1 year ago.
Compared to 1 year ago, LI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.88 indicates that LI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.88, LI belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
LI has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as LI would need 2.77 years to pay back of all of its debts.
LI has a better Debt to FCF ratio (2.77) than 89.19% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that LI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, LI is doing good in the industry, outperforming 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.42
WACC13.41%
2.3 Liquidity
A Current Ratio of 1.82 indicates that LI should not have too much problems paying its short term obligations.
LI has a better Current ratio (1.82) than 75.68% of its industry peers.
A Quick Ratio of 1.71 indicates that LI should not have too much problems paying its short term obligations.
LI has a Quick ratio of 1.71. This is amongst the best in the industry. LI outperforms 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for LI have decreased strongly by -24.11% in the last year.
The Revenue has grown by 10.75% in the past year. This is quite good.
Measured over the past years, LI shows a very strong growth in Revenue. The Revenue has been growing by 247.68% on average per year.
EPS 1Y (TTM)-24.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.41%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%0.2%
3.2 Future
LI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.06% yearly.
LI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.91% yearly.
EPS Next Y48.67%
EPS Next 2Y47.77%
EPS Next 3Y41.76%
EPS Next 5Y23.06%
Revenue Next Year19.11%
Revenue Next 2Y23.43%
Revenue Next 3Y21.11%
Revenue Next 5Y15.92%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
LI is valuated rather expensively with a Price/Earnings ratio of 23.38.
LI's Price/Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 78.38% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.29, LI is valued at the same level.
LI is valuated reasonably with a Price/Forward Earnings ratio of 11.50.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LI indicates a somewhat cheap valuation: LI is cheaper than 78.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, LI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.38 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LI indicates a rather cheap valuation: LI is cheaper than 97.30% of the companies listed in the same industry.
LI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LI is cheaper than 86.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.74 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
LI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LI may justify a higher PE ratio.
A more expensive valuation may be justified as LI's earnings are expected to grow with 41.76% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y47.77%
EPS Next 3Y41.76%
5. Dividend
5.1 Amount
LI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.82
-0.52 (-1.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners23.37%
Inst Owner Change-1.31%
Ins Owners18.59%
Ins Owner ChangeN/A
Market Cap28.19B
Analysts84.12
Price Target34.64 (24.51%)
Short Float %4%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.09%
Min EPS beat(2)-1.96%
Max EPS beat(2)4.14%
EPS beat(4)1
Avg EPS beat(4)-22.54%
Min EPS beat(4)-78.27%
Max EPS beat(4)4.14%
EPS beat(8)5
Avg EPS beat(8)332.83%
EPS beat(12)6
Avg EPS beat(12)183.89%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)3.66%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)3.66%
Revenue beat(8)5
Avg Revenue beat(8)-0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.9%
Revenue beat(16)9
Avg Revenue beat(16)0.89%
PT rev (1m)-0.06%
PT rev (3m)7.79%
EPS NQ rev (1m)-25.7%
EPS NQ rev (3m)-37.85%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-12.15%
Revenue NQ rev (1m)-16.61%
Revenue NQ rev (3m)-28.49%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-8.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.38 | ||
| Fwd PE | 11.5 | ||
| P/S | 1.4 | ||
| P/FCF | 24.74 | ||
| P/OCF | 12.74 | ||
| P/B | 2.86 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)1.19
EY4.28%
EPS(NY)2.42
Fwd EY8.7%
FCF(TTM)1.12
FCFY4.04%
OCF(TTM)2.18
OCFY7.85%
SpS19.8
BVpS9.72
TBVpS9.59
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 11.33% | ||
| ROCE | 7.54% | ||
| ROIC | 5.68% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.86% | ||
| PM (TTM) | 5.56% | ||
| GM | 20.53% | ||
| FCFM | 5.68% |
ROA(3y)3.59%
ROA(5y)1.62%
ROE(3y)8.77%
ROE(5y)4.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5YN/A
F-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 252.79% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 158.11% | ||
| Profit Quality | 102.13% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.88 |
F-Score5
WACC13.41%
ROIC/WACC0.42
Cap/Depr(3y)345.25%
Cap/Depr(5y)365.9%
Cap/Sales(3y)7.31%
Cap/Sales(5y)8.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.41%
EPS Next Y48.67%
EPS Next 2Y47.77%
EPS Next 3Y41.76%
EPS Next 5Y23.06%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%0.2%
Revenue Next Year19.11%
Revenue Next 2Y23.43%
Revenue Next 3Y21.11%
Revenue Next 5Y15.92%
EBIT growth 1Y-5.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.39%
EBIT Next 3Y55.63%
EBIT Next 5Y29.82%
FCF growth 1Y-81.44%
FCF growth 3Y18.77%
FCF growth 5YN/A
OCF growth 1Y-68.57%
OCF growth 3Y24.08%
OCF growth 5YN/A