Investors seeking growth at a reasonable cost should explore NASDAQ:LI.

Last update: Dec 17, 2024

LI AUTO INC - ADR (NASDAQ:LI) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:LI is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Assessment of NASDAQ:LI

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:LI boasts 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!
Measured over the past years, LI shows a very strong growth in Revenue. The Revenue has been growing by 135.72% on average per year.
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.
The Revenue is expected to grow by 20.31% on average over the next years. This is a very strong growth

Evaluating Valuation: NASDAQ:LI

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 6 out of 10:

LI's Price/Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 78.57% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.94. LI is valued slightly cheaper when compared to this.
83.33% of the companies in the same industry are more expensive than LI, based on the Price/Forward Earnings ratio.
LI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.53.
LI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LI is cheaper than 80.95% of the companies in the same industry.
LI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LI is 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.

Assessing Health for NASDAQ:LI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:LI has received a 6 out of 10:

The Altman-Z score of LI (2.71) is better than 85.71% of its industry peers.
The Debt to FCF ratio of LI is 1.05, which is an excellent value as it means it would take LI, only 1.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LI (1.05) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that LI is not too dependend on debt financing.
Looking at the Current ratio, with a value of 1.76, LI is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
LI has a better Quick ratio (1.63) than 73.81% of its industry peers.

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 7.01% is amongst the best of the industry. LI outperforms 90.48% of its industry peers.
LI's Return On Equity of 16.18% is amongst the best of the industry. LI outperforms 85.71% of its industry peers.
The Return On Invested Capital of LI (4.08%) is better than 71.43% of its industry peers.
With an excellent Profit Margin value of 7.61%, LI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With a decent Operating Margin value of 3.93%, LI is doing good in the industry, outperforming 73.81% of the companies in the same industry.
The Gross Margin of LI (21.61%) is better than 83.33% of its industry peers.
LI's Gross Margin has improved in the last couple of years.

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

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

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.