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. LI scores excellent on profitability, but there are some minor concerns on its financial health. LI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, LI could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
LI had positive earnings in the past year.
In the past year LI had a positive cash flow from operations.
In multiple years LI reported negative net income over the last 5 years.
In the past 5 years LI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LI (4.95%) is better than 89.19% of its industry peers.
LI has a Return On Equity of 11.33%. This is amongst the best in the industry. LI outperforms 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
The Profit Margin of LI (5.56%) is better than 89.19% of its industry peers.
The Operating Margin of LI (4.86%) is better than 81.08% of its industry peers.
LI's Gross Margin of 20.53% is amongst the best of the industry. LI outperforms 83.78% of its industry peers.
LI's Gross Margin has been stable in the last couple of years.
| 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.
The debt/assets ratio for LI has been reduced compared to a year ago.
2.2 Solvency
LI has an Altman-Z score of 2.79. This is not the best score and indicates that LI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of LI (2.79) is better than 83.78% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.77, LI belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that LI is not too dependend on debt financing.
LI has a Debt to Equity ratio of 0.32. This is in the better half of the industry: LI outperforms 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.86
WACC6.6%
2.3 Liquidity
LI has a Current Ratio of 1.82. This is a normal value and indicates that LI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of LI (1.82) is better 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.
Looking at the Quick ratio, with a value of 1.71, LI belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
| 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.
Looking at the last year, LI shows a quite strong growth in Revenue. The Revenue has grown by 10.75% in the last year.
LI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 247.68% yearly.
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
The Earnings Per Share is expected to grow by 23.06% on average over the next years. This is a very strong growth
Based on estimates for the next years, LI will show a quite strong growth in Revenue. The Revenue will grow by 15.09% on average per year.
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 5Y15.09%
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 23.24.
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.
LI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.49, the valuation of LI can be described as very reasonable.
LI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 78.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LI to the average of the S&P500 Index (21.03), we can say LI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
97.30% of the companies in the same industry are more expensive than LI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LI indicates a rather cheap valuation: LI is cheaper than 86.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.73 | ||
| EV/EBITDA | 3.83 |
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.
LI has a very decent profitability rating, which 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 |
NASDAQ:LI (6/23/2025, 10:54:03 AM)
27.89
+1.88 (+7.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners21.48%
Inst Owner Change-1.31%
Ins Owners18.02%
Ins Owner ChangeN/A
Market Cap28.26B
Analysts84.12
Price Target35.49 (27.25%)
Short Float %3.44%
Short Ratio4.3
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)0.55%
PT rev (3m)5.58%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-26.45%
EPS NY rev (1m)0.12%
EPS NY rev (3m)-12.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.24 | ||
| Fwd PE | 11.49 | ||
| P/S | 1.4 | ||
| P/FCF | 24.73 | ||
| P/OCF | 12.73 | ||
| P/B | 2.86 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 3.83 |
EPS(TTM)1.2
EY4.3%
EPS(NY)2.43
Fwd EY8.7%
FCF(TTM)1.13
FCFY4.04%
OCF(TTM)2.19
OCFY7.86%
SpS19.86
BVpS9.75
TBVpS9.62
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 | 2.79 |
F-Score5
WACC6.6%
ROIC/WACC0.86
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 5Y15.09%
EBIT growth 1Y-5.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.39%
EBIT Next 3Y55.63%
EBIT Next 5Y31.36%
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