LI AUTO INC - ADR (LI) Stock Fundamental Analysis
USA - NASDAQ:LI - US50202M1027 - ADR
23.13 USD
+0.33 (+1.45%)
23.16 USD
+0.03 (+0.13%)
We assign a fundamental rating of 6 out of 10 to LI. LI was compared to 37 industry peers in the Automobiles industry. LI gets an excellent profitability rating and is at the same time showing great financial health properties. LI is not valued too expensively and it also shows a decent growth rate. This makes LI very considerable for quality investing!
1. Profitability
1.1 Basic Checks
LI had positive earnings in the past year.
In the past year LI had a positive cash flow from operations.
In multiple years LI reported negative net income over the last 5 years.
In the past 5 years LI always reported a positive cash flow from operatings.
1.2 Ratios
LI has a better Return On Assets (5.01%) than 97.30% of its industry peers.
LI has a better Return On Equity (11.05%) than 94.59% of its industry peers.
The Return On Invested Capital of LI (6.59%) is better than 97.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 11.05% | ||
| ROIC | 6.59% |
ROA(3y)3.59%
ROA(5y)1.62%
ROE(3y)8.77%
ROE(5y)4.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 5.64%, LI belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
With an excellent Operating Margin value of 5.75%, LI belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
LI has a better Gross Margin (20.64%) than 81.08% of its industry peers.
In the last couple of years the Gross Margin of LI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.75% | ||
| PM (TTM) | 5.64% | ||
| GM | 20.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5YN/A
2. Health
2.1 Basic Checks
LI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LI has more shares outstanding than it did 1 year ago.
The debt/assets ratio for LI has been reduced compared to a year ago.
2.2 Solvency
LI has an Altman-Z score of 2.68. This is not the best score and indicates that LI is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.68, LI belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
LI has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
The Debt to FCF ratio of LI (1.63) is better than 94.59% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that LI is not too dependend on debt financing.
The Debt to Equity ratio of LI (0.28) is better than 78.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.89
WACC7.44%
2.3 Liquidity
LI has a Current Ratio of 1.73. This is a normal value and indicates that LI is financially healthy and should not expect problems in meeting its short term obligations.
LI has a Current ratio of 1.73. This is in the better half of the industry: LI outperforms 72.97% of its industry peers.
A Quick Ratio of 1.57 indicates that LI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.57, LI belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
LI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.83%.
Looking at the last year, LI shows a small growth in Revenue. The Revenue has grown by 7.18% in the last year.
Measured over the past years, LI shows a very strong growth in Revenue. The Revenue has been growing by 247.68% on average per year.
EPS 1Y (TTM)-20.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1.92%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%-4.52%
3.2 Future
Based on estimates for the next years, LI will show a very strong growth in Earnings Per Share. The EPS will grow by 23.02% on average per year.
The Revenue is expected to grow by 13.38% on average over the next years. This is quite good.
EPS Next Y-12.95%
EPS Next 2Y16.43%
EPS Next 3Y23.43%
EPS Next 5Y23.02%
Revenue Next Year-8.24%
Revenue Next 2Y9.64%
Revenue Next 3Y11.85%
Revenue Next 5Y13.38%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.47, the valuation of LI can be described as rather expensive.
Based on the Price/Earnings ratio, LI is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
LI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.35.
LI is valuated correctly with a Price/Forward Earnings ratio of 15.21.
Based on the Price/Forward Earnings ratio, LI is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LI to the average of the S&P500 Index (22.86), we can say LI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 15.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LI is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 0.84 |
4.3 Compensation for Growth
The decent profitability rating of LI may justify a higher PE ratio.
LI's earnings are expected to grow with 23.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.43%
EPS Next 3Y23.43%
5. Dividend
5.1 Amount
LI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.13
+0.33 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners23.55%
Inst Owner Change-2.34%
Ins Owners17.7%
Ins Owner ChangeN/A
Market Cap23.44B
Analysts74.59
Price Target26.16 (13.1%)
Short Float %4.18%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-57.8%
Min EPS beat(2)-65.85%
Max EPS beat(2)-49.75%
EPS beat(4)1
Avg EPS beat(4)-28.36%
Min EPS beat(4)-65.85%
Max EPS beat(4)4.14%
EPS beat(8)3
Avg EPS beat(8)5.54%
EPS beat(12)6
Avg EPS beat(12)212.52%
EPS beat(16)7
Avg EPS beat(16)134.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)3.66%
Revenue beat(8)5
Avg Revenue beat(8)0.12%
Revenue beat(12)6
Avg Revenue beat(12)-0.51%
Revenue beat(16)8
Avg Revenue beat(16)-0.3%
PT rev (1m)-20.85%
PT rev (3m)-26.3%
EPS NQ rev (1m)-18.69%
EPS NQ rev (3m)-45.52%
EPS NY rev (1m)-33.83%
EPS NY rev (3m)-41.32%
Revenue NQ rev (1m)16%
Revenue NQ rev (3m)-34.32%
Revenue NY rev (1m)-2.16%
Revenue NY rev (3m)-22.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.47 | ||
| Fwd PE | 15.21 | ||
| P/S | 1.16 | ||
| P/FCF | 10.14 | ||
| P/OCF | 11.15 | ||
| P/B | 2.28 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 0.84 |
EPS(TTM)1.13
EY4.89%
EPS(NY)1.52
Fwd EY6.58%
FCF(TTM)2.28
FCFY9.87%
OCF(TTM)2.07
OCFY8.97%
SpS19.86
BVpS10.13
TBVpS10
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 11.05% | ||
| ROCE | 9.14% | ||
| ROIC | 6.59% | ||
| ROICexc | 671.6% | ||
| ROICexgc | 5939.88% | ||
| OM | 5.75% | ||
| PM (TTM) | 5.64% | ||
| GM | 20.64% | ||
| FCFM | 11.49% |
ROA(3y)3.59%
ROA(5y)1.62%
ROE(3y)8.77%
ROE(5y)4.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.27%
GM growth 5YN/A
F-Score4
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 1.8 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 132.55% | ||
| Profit Quality | 203.82% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 2.68 |
F-Score4
WACC7.44%
ROIC/WACC0.89
Cap/Depr(3y)345.25%
Cap/Depr(5y)365.9%
Cap/Sales(3y)7.31%
Cap/Sales(5y)8.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1.92%
EPS Next Y-12.95%
EPS Next 2Y16.43%
EPS Next 3Y23.43%
EPS Next 5Y23.02%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%-4.52%
Revenue Next Year-8.24%
Revenue Next 2Y9.64%
Revenue Next 3Y11.85%
Revenue Next 5Y13.38%
EBIT growth 1Y56.58%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.53%
EBIT Next 3Y44.2%
EBIT Next 5Y28.34%
FCF growth 1Y-6.35%
FCF growth 3Y18.77%
FCF growth 5YN/A
OCF growth 1Y-35.79%
OCF growth 3Y24.08%
OCF growth 5YN/A