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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LI. 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.
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
LI has a Return On Assets of 4.95%. This is amongst the best in the industry. LI outperforms 89.19% of its industry peers.
The Return On Equity of LI (11.33%) is better than 89.19% of its industry peers.
LI has a Return On Invested Capital of 5.68%. This is amongst the best in the industry. LI outperforms 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.
LI's Operating Margin of 4.86% is amongst the best of the industry. LI outperforms 81.08% of its industry peers.
The Gross Margin of LI (20.53%) is better than 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.
LI has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, LI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that LI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.93, LI belongs to the top 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.
LI has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, LI is in the better half of 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 | 2.93 |
ROIC/WACC0.79
WACC7.2%
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.
LI has a better Current ratio (1.82) than 75.68% of its industry peers.
LI has a Quick Ratio of 1.71. 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 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
LI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.05%.
LI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.75%.
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)-29.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.71%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%1.14%
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.
Based on estimates for the next years, LI will show a quite strong growth in Revenue. The Revenue will grow by 15.02% 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 5Y15.02%
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
With a Price/Earnings ratio of 26.21, LI can be considered very expensive at the moment.
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.
When comparing the Price/Earnings ratio of LI to the average of the S&P500 Index (27.18), we can say LI is valued inline with the index average.
With a Price/Forward Earnings ratio of 12.09, LI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LI indicates a rather cheap valuation: LI is cheaper than 81.08% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LI to the average of the S&P500 Index (35.34), we can say LI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
LI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LI is cheaper than 94.59% of the companies 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 | 26.01 | ||
| EV/EBITDA | 5.91 |
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.
LI's earnings are expected to grow with 41.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
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 (7/16/2025, 3:11:08 PM)
29.35
+0.44 (+1.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners21.48%
Inst Owner Change0%
Ins Owners18.02%
Ins Owner ChangeN/A
Market Cap29.74B
Analysts84
Price Target35.49 (20.92%)
Short Float %2.94%
Short Ratio4.01
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)2.46%
PT rev (3m)1.16%
EPS NQ rev (1m)51.03%
EPS NQ rev (3m)18.51%
EPS NY rev (1m)0%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 12.09 | ||
| P/S | 1.48 | ||
| P/FCF | 26.01 | ||
| P/OCF | 13.39 | ||
| P/B | 3.01 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)1.12
EY3.82%
EPS(NY)2.43
Fwd EY8.27%
FCF(TTM)1.13
FCFY3.85%
OCF(TTM)2.19
OCFY7.47%
SpS19.88
BVpS9.75
TBVpS9.62
PEG (NY)0.54
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 | 2.93 |
F-Score5
WACC7.2%
ROIC/WACC0.79
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)-29.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.71%
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%1.14%
Revenue Next Year19.11%
Revenue Next 2Y23.43%
Revenue Next 3Y21.11%
Revenue Next 5Y15.02%
EBIT growth 1Y-5.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.39%
EBIT Next 3Y55.63%
EBIT Next 5Y31.28%
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