LI AUTO INC - ADR (LI)
US50202M1027 - ADR
Taking everything into account, LI scores 6 out of 10 in our fundamental rating. LI was compared to 40 industry peers in the Automobiles industry. LI has an average financial health and profitability rating. LI is growing strongly while it also seems undervalued. This is an interesting combination This makes LI very considerable for value and growth 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.
In the past 5 years LI reported 4 times negative net income.
Of the past 5 years LI 4 years had a positive operating cash flow.
1.2 Ratios
LI's Return On Assets of 8.16% is amongst the best of the industry. LI outperforms 87.18% of its industry peers.
Looking at the Return On Equity, with a value of 19.46%, LI belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
LI's Return On Invested Capital of 6.24% is amongst the best of the industry. LI outperforms 82.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 19.46% | ||
| ROIC | 6.24% |
ROA(3y)1.77%
ROA(5y)N/A
ROE(3y)4.73%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 9.45%, LI belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
LI has a better Operating Margin (5.98%) than 76.92% of its industry peers.
The Gross Margin of LI (22.20%) is better than 84.62% of its industry peers.
LI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.98% | ||
| PM (TTM) | 9.45% | ||
| GM | 22.2% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.66%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LI is destroying value.
Compared to 1 year ago, LI has more shares outstanding
The debt/assets ratio for LI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that LI is not a great score, but indicates only limited risk for bankruptcy at the moment.
LI has a Altman-Z score of 2.72. This is in the better half of the industry: LI outperforms 71.79% of its industry peers.
LI has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
LI has a Debt to FCF ratio of 0.58. This is amongst the best in the industry. LI outperforms 100.00% of its industry peers.
LI has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
LI has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.61
WACC10.3%
2.3 Liquidity
A Current Ratio of 1.57 indicates that LI should not have too much problems paying its short term obligations.
The Current ratio of LI (1.57) is comparable to the rest of the industry.
A Quick Ratio of 1.48 indicates that LI should not have too much problems paying its short term obligations.
LI has a Quick ratio of 1.48. This is in the better half of the industry: LI outperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
LI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 632.69%, which is quite impressive.
Looking at the last year, LI shows a very strong growth in Revenue. The Revenue has grown by 173.48%.
LI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 135.72% yearly.
EPS 1Y (TTM)632.69%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q1946.15%
Revenue 1Y (TTM)173.48%
Revenue growth 3Y135.72%
Revenue growth 5YN/A
Revenue growth Q2Q136.44%
3.2 Future
LI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.36% yearly.
LI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.70% yearly.
EPS Next Y38.17%
EPS Next 2Y44.39%
EPS Next 3Y38.11%
EPS Next 5Y7.36%
Revenue Next Year62.66%
Revenue Next 2Y49.2%
Revenue Next 3Y37.82%
Revenue Next 5Y25.7%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.46, which indicates a correct valuation of LI.
76.92% of the companies in the same industry are more expensive than LI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 24.84, LI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.19, the valuation of LI can be described as very reasonable.
LI's Price/Forward Earnings ratio is rather cheap when compared to the industry. LI is cheaper than 82.05% of the companies in the same industry.
LI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
92.31% of the companies in the same industry are more expensive than LI, based on the Enterprise Value to EBITDA ratio.
LI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LI is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.12 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
The 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.
LI's earnings are expected to grow with 38.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y44.39%
EPS Next 3Y38.11%
5. Dividend
5.1 Amount
LI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LI AUTO INC - ADR
NASDAQ:LI (4/26/2024, 7:01:14 PM)
Premarket: 26.0896 +1.05 (+4.19%)25.04
+1.57 (+6.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 11.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.16% | ||
| ROE | 19.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.98% | ||
| PM (TTM) | 9.45% | ||
| GM | 22.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)632.69%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y38.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)173.48%
Revenue growth 3Y135.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y