Investors should take notice of NASDAQ:LI—it offers a great deal for the fundamentals it presents.

Last update: Nov 27, 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.

Evaluating Valuation: 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:

Compared to the rest of the industry, the Price/Earnings ratio of LI indicates a rather cheap valuation: LI is cheaper than 80.95% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LI to the average of the S&P500 Index (29.61), we can say LI is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, LI is valued cheaper than 83.33% of the companies in the same industry.
LI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.24.
85.71% of the companies in the same industry are more expensive than LI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LI is valued cheaper than 95.24% of the companies in the same industry.
The decent profitability rating of LI may justify a higher PE ratio.
LI's earnings are expected to grow with 18.07% in the coming years. This may justify a more expensive valuation.

Profitability Examination for NASDAQ:LI

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:LI, the assigned 6 is noteworthy for profitability:

LI's Return On Assets of 7.01% is amongst the best of the industry. LI outperforms 90.48% of its industry peers.
Looking at the Return On Equity, with a value of 16.18%, LI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
LI's Return On Invested Capital of 4.08% is fine compared to the rest of the industry. LI outperforms 71.43% of its industry peers.
The Profit Margin of LI (7.61%) is better than 85.71% of its industry peers.
LI has a Operating Margin of 3.93%. This is in the better half of the industry: LI outperforms 73.81% of its industry peers.
LI has a better Gross Margin (21.61%) than 83.33% of its industry peers.
In the last couple of years the Gross Margin of LI has grown nicely.

Health Analysis 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 better Altman-Z score (2.70) than 85.71% of its industry peers.
LI has a debt to FCF ratio of 1.05. This is a very positive value and a sign of high solvency as it would only need 1.05 years to pay back of all of its debts.
LI's Debt to FCF ratio of 1.05 is amongst the best of the industry. LI outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that LI is not too dependend on debt financing.
The Quick ratio of LI (1.63) is better than 73.81% of its industry peers.

Growth Assessment of NASDAQ:LI

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:LI has achieved a 8 out of 10:

The Earnings Per Share has grown by an impressive 59.18% over the past year.
The Revenue has grown by 42.25% in the past year. This is a very strong growth!
The Revenue has been growing by 135.72% on average over the past years. This is a very strong growth!
Based on estimates for the next years, LI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.57% on average per year.
LI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.99% yearly.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of LI for a complete fundamental analysis.

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.