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

Last update: Jul 4, 2024

Uncover the potential of LI AUTO INC - ADR (NASDAQ:LI), a growth stock that our stock screener found to be reasonably priced. NASDAQ:LI is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Assessing Growth Metrics 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 8 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.
Looking at the last year, LI shows a very strong growth in Revenue. The Revenue has grown by 139.76%.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.49% on average per year.
The Revenue is expected to grow by 21.99% on average over the next years. This is a very strong growth

A Closer Look at Valuation 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 7 for valuation:

LI's Price/Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 74.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, LI is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.68, the valuation of LI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, LI is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
LI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.15.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LI indicates a rather cheap valuation: LI is cheaper than 97.44% of the companies listed in the same industry.
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.
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 23.71% in the coming years.

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:

The Altman-Z score of LI (2.56) is better than 79.49% 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.
LI has a better Debt to FCF ratio (0.58) 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 74.36% of the companies in the same industry.

Exploring NASDAQ:LI's Profitability

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 has a better Return On Assets (8.16%) than 87.18% of its industry peers.
LI has a better Return On Equity (19.46%) than 87.18% of its industry peers.
LI has a Return On Invested Capital of 6.24%. This is amongst the best in the industry. LI outperforms 84.62% of its industry peers.
LI's Profit Margin of 9.45% is amongst the best of the industry. LI outperforms 87.18% of its industry peers.
LI has a Operating Margin of 5.98%. This is in the better half of the industry: LI outperforms 79.49% of its industry peers.
LI has a Gross Margin of 22.20%. This is amongst the best in the industry. LI outperforms 82.05% of its industry peers.
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

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.