NASDAQ:LI stands out as a growth opportunity that won't break the bank.

Last update: May 13, 2024

Consider LI AUTO INC - ADR (NASDAQ:LI) as an affordable growth stock, identified by our stock screening tool. NASDAQ:LI is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Analysis for NASDAQ:LI

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:LI was assigned a score of 7 for growth:

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.
Looking at the last year, LI shows a very strong growth in Revenue. 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.
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.

Assessing 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:

72.97% of the companies in the same industry are more expensive than LI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LI to the average of the S&P500 Index (28.39), we can say LI is valued slightly cheaper.
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 the industry average as 78.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.26, LI is valued a bit cheaper.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LI indicates a rather cheap valuation: LI is cheaper than 91.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The 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 38.11% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NASDAQ:LI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LI has achieved a 5 out of 10:

Looking at the Altman-Z score, with a value of 2.79, LI is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.58, LI belongs to the best 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.
LI has a better Quick ratio (1.48) than 67.57% of its industry peers.

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:

With an excellent Return On Assets value of 8.16%, LI belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
LI has a Return On Equity of 19.46%. This is amongst the best in the industry. LI outperforms 83.78% of its industry peers.
LI's Return On Invested Capital of 6.24% is amongst the best of the industry. LI outperforms 81.08% of its industry peers.
LI has a better Profit Margin (9.45%) than 86.49% of its industry peers.
Looking at the Operating Margin, with a value of 5.98%, LI is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
Looking at the Gross Margin, with a value of 22.20%, LI belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
In the last couple of years the Gross Margin of LI has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of LI contains the most current fundamental analsysis.

Keep in mind

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.