NASDAQ:LI is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jun 3, 2024

Discover LI AUTO INC - ADR (NASDAQ:LI)—an undervalued stock our stock screener has picked out. NASDAQ:LI demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation Metrics for NASDAQ:LI

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:LI has earned a 8 for valuation:

Based on the Price/Earnings ratio, LI is valued a bit cheaper than 73.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of LI to the average of the S&P500 Index (28.06), we can say LI is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.52, the valuation of LI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LI indicates a rather cheap valuation: LI is cheaper than 86.84% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.05. LI is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, LI is valued cheaply inside the industry as 97.37% of the companies are valued more expensively.
LI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LI is cheaper than 100.00% of the companies in the same industry.
The decent profitability rating of LI may justify a higher PE ratio.
A more expensive valuation may be justified as LI's earnings are expected to grow with 27.07% in the coming years.

Profitability Examination for NASDAQ:LI

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:LI, the assigned 6 is a significant indicator of profitability:

LI's Return On Assets of 8.16% is amongst the best of the industry. LI outperforms 86.84% 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.
LI has a Return On Invested Capital of 6.24%. This is amongst the best in the industry. LI outperforms 84.21% of its industry peers.
LI has a better Profit Margin (9.45%) than 86.84% of its industry peers.
LI has a Operating Margin of 5.98%. This is in the better half of the industry: LI outperforms 76.32% of its industry peers.
LI has a better Gross Margin (22.20%) than 84.21% of its industry peers.
In the last couple of years the Gross Margin of LI has grown nicely.

Understanding NASDAQ:LI's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:LI was assigned a score of 5 for health:

With a decent Altman-Z score value of 2.46, LI is doing good in the industry, outperforming 76.32% of the companies in the same industry.
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.
LI has a Debt to FCF ratio of 0.58. This is amongst the best in the industry. LI outperforms 100.00% of its industry peers.
LI has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
The Quick ratio of LI (1.48) is better than 71.05% of its industry peers.

Evaluating Growth: NASDAQ:LI

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:LI has received a 7 out of 10:

The Earnings Per Share has grown by an impressive 1025.86% over the past year.
Looking at the last year, LI shows a very strong growth in Revenue. The Revenue has grown by 139.76%.
The Revenue has been growing by 135.72% on average over the past years. This is a very strong growth!
LI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.70% yearly.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of LI

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.