Despite its growth, NASDAQ:LI remains within the realm of affordability.

Last update: Apr 22, 2024

Here's LI AUTO INC - ADR (NASDAQ:LI) for you, a growth stock our stock screener believes is undervalued. NASDAQ:LI is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

What does the Growth looks like for NASDAQ:LI

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:LI, the assigned 7 reflects its growth potential:

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.
LI shows a strong growth in Revenue. In the last year, 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.
The Revenue is expected to grow by 24.64% on average over the next years. This is a very strong growth

What does the Valuation looks like for NASDAQ:LI

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:LI, the assigned 8 reflects its valuation:

LI's Price/Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 76.32% of the companies in the same industry.
LI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.75.
With a Price/Forward Earnings ratio of 11.78, the valuation of LI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LI is valued a bit cheaper than 78.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LI to the average of the S&P500 Index (21.23), we can say LI is valued slightly cheaper.
LI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LI is cheaper than 89.47% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than LI, based on the Price/Free Cash Flow ratio.
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.

Assessing Health Metrics for NASDAQ:LI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LI has received a 5 out of 10:

The Altman-Z score of LI (2.79) is better than 76.32% of its industry peers.
The Debt to FCF ratio of LI is 0.58, which is an excellent value as it means it would take LI, only 0.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LI (0.58) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that LI is not too dependend on debt financing.
With a decent Quick ratio value of 1.48, LI is doing good in the industry, outperforming 68.42% of the companies in the same industry.

Profitability Examination for NASDAQ:LI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:LI has earned a 6 out of 10:

LI has a better Return On Assets (8.16%) than 89.47% of its industry peers.
With an excellent Return On Equity value of 19.46%, LI belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.24%, LI belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
Looking at the Profit Margin, with a value of 9.45%, LI belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
With an excellent Operating Margin value of 5.98%, LI belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
The Gross Margin of LI (22.20%) is better than 86.84% of its industry peers.
In the last couple of years the Gross Margin of LI has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of LI for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.