Despite its impressive fundamentals, NASDAQ:LI remains undervalued.

Last update: May 13, 2024

Uncover the hidden value in LI AUTO INC - ADR (NASDAQ:LI) as our stock screening tool recommends it as an undervalued choice. NASDAQ:LI maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

A Closer Look at Valuation for NASDAQ:LI

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:LI scores a 8 out of 10:

Based on the Price/Earnings ratio, LI is valued a bit cheaper than the industry average as 74.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.38, LI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.78, the valuation of LI can be described as reasonable.
LI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 79.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LI to the average of the S&P500 Index (20.35), we can say LI is valued slightly cheaper.
92.31% of the companies in the same industry are more expensive than LI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LI indicates a rather cheap valuation: LI is cheaper than 100.00% of the companies listed in the same industry.
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 38.11% in the coming years.

How do we evaluate the Profitability for NASDAQ:LI?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:LI has achieved a 6:

The Return On Assets of LI (8.16%) is better than 87.18% of its industry peers.
LI has a Return On Equity of 19.46%. This is amongst the best in the industry. LI outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.24%, LI belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
LI has a Profit Margin of 9.45%. This is amongst the best in the industry. LI outperforms 87.18% of its industry peers.
With a decent Operating Margin value of 5.98%, LI is doing good in the industry, outperforming 76.92% of the companies in the same industry.
The Gross Margin of LI (22.20%) is better than 84.62% of its industry peers.
In the last couple of years the Gross Margin of LI has grown nicely.

Health Assessment of NASDAQ:LI

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:LI scores a 5 out of 10:

LI has a better Altman-Z score (2.79) than 74.36% 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.
Looking at the Debt to FCF ratio, with a value of 0.58, LI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 69.23% of the companies in the same industry.

Looking at the Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:LI scores a 7 out of 10:

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%.
Measured over the past years, LI shows a very strong growth in Revenue. The Revenue has been growing by 135.72% on average per year.
Based on estimates for the next years, LI will show a very strong growth in Revenue. The Revenue will grow by 25.70% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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.