In the world of growth stocks, NASDAQ:LI shines as a value proposition.

Last update: Jun 3, 2024

Our stock screener has spotted LI AUTO INC - ADR (NASDAQ:LI) as a growth stock which is not overvalued. NASDAQ:LI is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Growth for NASDAQ:LI

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 1025.86%, which is quite impressive.
The Revenue has grown by 139.76% in the past year. This is a very strong growth!
LI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 135.72% yearly.
LI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.70% yearly.

Looking at the Valuation

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:

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

Assessing Health Metrics for 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 Altman-Z score of 2.46. This is in the better half of the industry: LI outperforms 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.
LI's Debt to FCF ratio of 0.58 is amongst the best of 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.
LI's Quick ratio of 1.48 is fine compared to the rest of the industry. LI outperforms 71.05% of its industry peers.

Exploring NASDAQ:LI's Profitability

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 86.84% of its industry peers.
LI's Return On Equity of 19.46% is amongst the best of the industry. LI outperforms 86.84% of its industry peers.
LI has a better Return On Invested Capital (6.24%) than 84.21% of its industry peers.
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 a decent Operating Margin value of 5.98%, LI is doing good in the industry, outperforming 76.32% 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 84.21% of the companies in the same industry.
LI's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.