LI AUTO INC - ADR (LI) Stock Fundamental Analysis
NASDAQ:LI - Nasdaq - US50202M1027 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to LI. LI was compared to 37 industry peers in the Automobiles industry. LI has an excellent profitability rating, but there are some minor concerns on its financial health. LI may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make LI a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year LI was profitable.
LI had a positive operating cash flow in the past year.
In multiple years LI reported negative net income over the last 5 years.
Each year in the past 5 years LI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.95%, LI belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
With an excellent Return On Equity value of 11.33%, LI belongs to the best of the industry, outperforming 89.19% of the companies in the same industry.
LI has a better Return On Invested Capital (5.68%) than 89.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 11.33% | ||
| ROIC | 5.68% |
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
LI's Profit Margin of 5.56% is amongst the best of the industry. LI outperforms 89.19% of its industry peers.
LI's Operating Margin of 4.86% is amongst the best of the industry. LI outperforms 81.08% of its industry peers.
LI has a Gross Margin of 20.53%. This is amongst the best in the industry. LI outperforms 83.78% 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 | 4.86% | ||
| PM (TTM) | 5.56% | ||
| GM | 20.53% |
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
An Altman-Z score of 2.86 indicates that LI is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.86, LI belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
The Debt to FCF ratio of LI is 2.77, which is a good value as it means it would take LI, 2.77 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LI (2.77) is better than 89.19% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that LI is not too dependend on debt financing.
LI has a Debt to Equity ratio of 0.32. This is in the better half of the industry: LI outperforms 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.86
WACC6.59%
2.3 Liquidity
A Current Ratio of 1.82 indicates that LI should not have too much problems paying its short term obligations.
LI has a Current ratio of 1.82. This is in the better half of the industry: LI outperforms 75.68% of its industry peers.
A Quick Ratio of 1.71 indicates that LI should not have too much problems paying its short term obligations.
LI has a better Quick ratio (1.71) than 81.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for LI have decreased strongly by -24.11% in the last year.
Looking at the last year, LI shows a quite strong growth in Revenue. The Revenue has grown by 10.75% 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)-24.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.41%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%0.2%
3.2 Future
LI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.06% yearly.
Based on estimates for the next years, LI will show a quite strong growth in Revenue. The Revenue will grow by 15.02% on average per year.
EPS Next Y48.67%
EPS Next 2Y47.77%
EPS Next 3Y41.76%
EPS Next 5Y23.06%
Revenue Next Year19.11%
Revenue Next 2Y23.43%
Revenue Next 3Y21.11%
Revenue Next 5Y15.02%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
LI is valuated rather expensively with a Price/Earnings ratio of 22.80.
Based on the Price/Earnings ratio, LI is valued cheaper than 81.08% of the companies in the same industry.
LI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.98.
A Price/Forward Earnings ratio of 11.27 indicates a reasonable valuation of LI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LI indicates a somewhat cheap valuation: LI is cheaper than 78.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LI to the average of the S&P500 Index (21.49), we can say LI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LI indicates a rather cheap valuation: LI is cheaper than 97.30% 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 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.24 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LI has a very decent profitability rating, which may justify a higher PE ratio.
LI's earnings are expected to grow with 41.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y47.77%
EPS Next 3Y41.76%
5. Dividend
5.1 Amount
LI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LI (6/30/2025, 12:59:00 PM)
27.365
-0.11 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners21.48%
Inst Owner Change-1.31%
Ins Owners18.02%
Ins Owner ChangeN/A
Market Cap27.73B
Analysts84.12
Price Target35.49 (29.69%)
Short Float %3.44%
Short Ratio4.3
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)1
Avg EPS beat(2)1.09%
Min EPS beat(2)-1.96%
Max EPS beat(2)4.14%
EPS beat(4)1
Avg EPS beat(4)-22.54%
Min EPS beat(4)-78.27%
Max EPS beat(4)4.14%
EPS beat(8)5
Avg EPS beat(8)332.83%
EPS beat(12)6
Avg EPS beat(12)183.89%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-3.05%
Max Revenue beat(2)3.66%
Revenue beat(4)3
Avg Revenue beat(4)0.39%
Min Revenue beat(4)-3.05%
Max Revenue beat(4)3.66%
Revenue beat(8)5
Avg Revenue beat(8)-0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.9%
Revenue beat(16)9
Avg Revenue beat(16)0.89%
PT rev (1m)0.55%
PT rev (3m)5.58%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-26.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 11.27 | ||
| P/S | 1.38 | ||
| P/FCF | 24.24 | ||
| P/OCF | 12.48 | ||
| P/B | 2.81 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 4.87 |
EPS(TTM)1.2
EY4.39%
EPS(NY)2.43
Fwd EY8.87%
FCF(TTM)1.13
FCFY4.13%
OCF(TTM)2.19
OCFY8.01%
SpS19.88
BVpS9.75
TBVpS9.63
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.95% | ||
| ROE | 11.33% | ||
| ROCE | 7.54% | ||
| ROIC | 5.68% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 4.86% | ||
| PM (TTM) | 5.56% | ||
| GM | 20.53% | ||
| FCFM | 5.68% |
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-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 252.79% | ||
| Cap/Sales | 5.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 158.11% | ||
| Profit Quality | 102.13% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 2.86 |
F-Score5
WACC6.59%
ROIC/WACC0.86
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)-24.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%105.41%
EPS Next Y48.67%
EPS Next 2Y47.77%
EPS Next 3Y41.76%
EPS Next 5Y23.06%
Revenue 1Y (TTM)10.75%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%0.2%
Revenue Next Year19.11%
Revenue Next 2Y23.43%
Revenue Next 3Y21.11%
Revenue Next 5Y15.02%
EBIT growth 1Y-5.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year104.39%
EBIT Next 3Y55.63%
EBIT Next 5Y31.28%
FCF growth 1Y-81.44%
FCF growth 3Y18.77%
FCF growth 5YN/A
OCF growth 1Y-68.57%
OCF growth 3Y24.08%
OCF growth 5YN/A