NASDAQ:LI appears to be flying under the radar despite its strong fundamentals.

Last update: Jul 9, 2024

Consider LI AUTO INC - ADR (NASDAQ:LI) as a top value stock, identified by our stock screening tool. NASDAQ:LI shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Unpacking NASDAQ:LI's Valuation Rating

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:LI boasts a 7 out of 10:

Based on the Price/Earnings ratio, LI is valued a bit cheaper than 76.92% of the companies in the same industry.
LI is valuated cheaply when we compare the Price/Earnings ratio to 28.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.46, the valuation of LI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LI indicates a rather cheap valuation: LI is cheaper than 82.05% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.21. LI is valued rather cheaply when compared to this.
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.
Based on the Price/Free Cash Flow ratio, LI is valued 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.
LI's earnings are expected to grow with 23.71% in the coming years. This may justify a more expensive valuation.

What does the Profitability looks like 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:

LI's Return On Assets of 8.16% is amongst the best of the industry. LI outperforms 87.18% of its industry peers.
Looking at the Return On Equity, with a value of 19.46%, LI belongs to the top of the industry, outperforming 87.18% 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 84.62% of its industry peers.
With an excellent Profit Margin value of 9.45%, LI belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
Looking at the Operating Margin, with a value of 5.98%, LI is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
LI's Gross Margin of 22.20% is amongst the best of the industry. LI outperforms 82.05% of its industry peers.
In the last couple of years the Gross Margin of LI has grown nicely.

Analyzing Health Metrics

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's Altman-Z score of 2.53 is fine compared to the rest of the industry. LI outperforms 79.49% 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.
The Debt to FCF ratio of LI (0.58) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that LI is not too dependend on debt financing.
The Quick ratio of LI (1.48) is better than 74.36% of its industry peers.

A Closer Look at Growth for 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 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.
Based on estimates for the next years, LI will show a very strong growth in Revenue. The Revenue will grow by 21.99% on average per year.

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

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

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.