LI AUTO INC - ADR (LI) Stock Fundamental Analysis
USA - NASDAQ:LI - US50202M1027 - ADR
25.45 USD
-0.3 (-1.17%)
25.09 USD
-0.36 (-1.41%)
LI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Automobiles industry. Both the health and profitability get an excellent rating, making LI a very profitable company, without any liquidiy or solvency issues. LI is not valued too expensively and it also shows a decent growth rate. These ratings would make LI suitable for quality 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.
The reported net income has been mixed in the past 5 years: LI reported negative net income in multiple years.
In the past 5 years LI always reported a positive cash flow from operatings.
1.2 Ratios
LI has a Return On Assets of 5.01%. This is amongst the best in the industry. LI outperforms 97.30% of its industry peers.
The Return On Equity of LI (11.05%) is better than 94.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.59%, LI belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 11.05% | ||
| ROIC | 6.59% |
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 5.64%, LI belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
LI's Operating Margin of 5.75% is amongst the best of the industry. LI outperforms 89.19% of its industry peers.
LI has a better Gross Margin (20.64%) 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 | 5.75% | ||
| PM (TTM) | 5.64% | ||
| GM | 20.64% |
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.
LI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 indicates that LI is not a great score, but indicates only limited risk for bankruptcy at the moment.
LI has a better Altman-Z score (2.80) than 83.78% of its industry peers.
The Debt to FCF ratio of LI is 1.63, which is an excellent value as it means it would take LI, only 1.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.63, LI belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that LI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.28, LI is doing good in the industry, outperforming 78.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.8
WACC8.23%
2.3 Liquidity
LI has a Current Ratio of 1.73. This is a normal value and indicates that LI is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.73, LI is doing good in the industry, outperforming 75.68% of the companies in the same industry.
LI has a Quick Ratio of 1.57. This is a normal value and indicates that LI is financially healthy and should not expect problems in meeting its short term obligations.
LI has a better Quick ratio (1.57) than 86.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
LI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.83%.
Looking at the last year, LI shows a small growth in Revenue. The Revenue has grown by 7.18% 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)-20.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1.92%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%-4.52%
3.2 Future
LI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.02% yearly.
LI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.41% yearly.
EPS Next Y-12.95%
EPS Next 2Y16.43%
EPS Next 3Y23.43%
EPS Next 5Y23.02%
Revenue Next Year-6.22%
Revenue Next 2Y10.45%
Revenue Next 3Y12.24%
Revenue Next 5Y13.41%
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 22.52, which indicates a rather expensive current valuation of LI.
Compared to the rest of the industry, the Price/Earnings ratio of LI indicates a rather cheap valuation: LI is cheaper than 86.49% of the companies listed in the same industry.
LI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 16.71, the valuation of LI can be described as correct.
LI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 75.68% of the companies in the same industry.
LI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 16.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
LI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LI is cheaper than 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.14 | ||
| EV/EBITDA | 2.51 |
4.3 Compensation for Growth
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 23.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y23.43%
5. Dividend
5.1 Amount
No dividends for LI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.45
-0.3 (-1.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners23.55%
Inst Owner Change-38.83%
Ins Owners17.7%
Ins Owner ChangeN/A
Market Cap25.79B
Analysts76.67
Price Target28.48 (11.91%)
Short Float %4.51%
Short Ratio4.54
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)0
Avg EPS beat(2)-57.8%
Min EPS beat(2)-65.85%
Max EPS beat(2)-49.75%
EPS beat(4)1
Avg EPS beat(4)-28.36%
Min EPS beat(4)-65.85%
Max EPS beat(4)4.14%
EPS beat(8)3
Avg EPS beat(8)5.54%
EPS beat(12)6
Avg EPS beat(12)212.52%
EPS beat(16)7
Avg EPS beat(16)134.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)3.66%
Revenue beat(8)5
Avg Revenue beat(8)0.12%
Revenue beat(12)6
Avg Revenue beat(12)-0.51%
Revenue beat(16)8
Avg Revenue beat(16)-0.3%
PT rev (1m)-16%
PT rev (3m)-17.79%
EPS NQ rev (1m)-31.55%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)-33.7%
EPS NY rev (3m)-41.32%
Revenue NQ rev (1m)-44.78%
Revenue NQ rev (3m)-35.31%
Revenue NY rev (1m)-15.98%
Revenue NY rev (3m)-21.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 16.71 | ||
| P/S | 1.28 | ||
| P/FCF | 11.14 | ||
| P/OCF | 12.25 | ||
| P/B | 2.51 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 2.51 |
EPS(TTM)1.13
EY4.44%
EPS(NY)1.52
Fwd EY5.99%
FCF(TTM)2.29
FCFY8.98%
OCF(TTM)2.08
OCFY8.16%
SpS19.89
BVpS10.15
TBVpS10.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 11.05% | ||
| ROCE | 9.14% | ||
| ROIC | 6.59% | ||
| ROICexc | 671.6% | ||
| ROICexgc | 5939.88% | ||
| OM | 5.75% | ||
| PM (TTM) | 5.64% | ||
| GM | 20.64% | ||
| FCFM | 11.49% |
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-Score4
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.55% | ||
| Profit Quality | 203.82% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 2.8 |
F-Score4
WACC8.23%
ROIC/WACC0.8
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)-20.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1.92%
EPS Next Y-12.95%
EPS Next 2Y16.43%
EPS Next 3Y23.43%
EPS Next 5Y23.02%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%-4.52%
Revenue Next Year-6.22%
Revenue Next 2Y10.45%
Revenue Next 3Y12.24%
Revenue Next 5Y13.41%
EBIT growth 1Y56.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.53%
EBIT Next 3Y44.2%
EBIT Next 5Y28.38%
FCF growth 1Y-6.35%
FCF growth 3Y18.77%
FCF growth 5YN/A
OCF growth 1Y-35.79%
OCF growth 3Y24.08%
OCF growth 5YN/A