LI AUTO INC - ADR (LI) Stock Fundamental Analysis
NASDAQ:LI - Nasdaq - US50202M1027 - ADR - Currency: USD
Taking everything into account, LI scores 6 out of 10 in our fundamental rating. LI was compared to 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LI. These ratings would make LI suitable 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.
In multiple years LI reported negative net income over the last 5 years.
Each year in the past 5 years LI had a positive operating cash flow.
1.2 Ratios
LI has a better Return On Assets (4.95%) than 91.89% of its industry peers.
With an excellent Return On Equity value of 11.33%, LI belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
LI's Return On Invested Capital of 5.68% is amongst the best of the industry. LI outperforms 94.59% 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
LI has a better Profit Margin (5.56%) than 89.19% of its industry peers.
Looking at the Operating Margin, with a value of 4.86%, LI belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
LI's Gross Margin of 20.53% is amongst the best of the industry. LI outperforms 83.78% 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
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
LI has a better debt/assets ratio than last year.
2.2 Solvency
LI has an Altman-Z score of 2.70. 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.
LI's Altman-Z score of 2.70 is amongst the best of the industry. LI outperforms 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.
Looking at the Debt to FCF ratio, with a value of 2.77, LI belongs to the top 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 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.7 |
ROIC/WACC0.84
WACC6.79%
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's Current ratio of 1.82 is fine compared to the rest of the industry. LI outperforms 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 better Quick ratio (1.71) than 86.49% 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%.
LI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 247.68% yearly.
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.
The Revenue is expected to grow by 15.02% on average over the next years. This is quite good.
EPS Next Y48.67%
EPS Next 2Y47.77%
EPS Next 3Y41.76%
EPS Next 5Y23.06%
Revenue Next Year13.91%
Revenue Next 2Y21.68%
Revenue Next 3Y19.2%
Revenue Next 5Y15.02%
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 22.01.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.54, LI is valued at the same level.
LI is valuated reasonably with a Price/Forward Earnings ratio of 10.17.
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.
LI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 10.17 |
4.2 Price Multiples
LI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LI is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LI is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.88 | ||
| EV/EBITDA | 2.55 |
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)0.45
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 |
24.65
+0.45 (+1.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners21.48%
Inst Owner Change-17.01%
Ins Owners18.02%
Ins Owner ChangeN/A
Market Cap24.98B
Analysts84
Price Target34.1 (38.34%)
Short Float %3.06%
Short Ratio4.1
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)-3.91%
PT rev (3m)-3.44%
EPS NQ rev (1m)51.03%
EPS NQ rev (3m)18.41%
EPS NY rev (1m)0%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.61%
Revenue NY rev (1m)-4.37%
Revenue NY rev (3m)-5.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 10.17 | ||
| P/S | 1.24 | ||
| P/FCF | 21.88 | ||
| P/OCF | 11.26 | ||
| P/B | 2.53 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 2.55 |
EPS(TTM)1.12
EY4.54%
EPS(NY)2.42
Fwd EY9.83%
FCF(TTM)1.13
FCFY4.57%
OCF(TTM)2.19
OCFY8.88%
SpS19.84
BVpS9.73
TBVpS9.61
PEG (NY)0.45
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 | 2.7 |
F-Score5
WACC6.79%
ROIC/WACC0.84
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 Year13.91%
Revenue Next 2Y21.68%
Revenue Next 3Y19.2%
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