LI AUTO INC - ADR (LI)
US50202M1027 - ADR
Overall LI gets a fundamental rating of 6 out of 10. We evaluated LI against 42 industry peers in the Automobiles industry. Both the profitability and the financial health of LI get a neutral evaluation. Nothing too spectacular is happening here. LI is growing strongly while it is still valued neutral. This is a good combination! This makes LI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year LI was profitable.
In the past year LI had a positive cash flow from operations.
In the past 5 years LI reported 4 times negative net income.
LI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LI has a better Return On Assets (7.01%) than 90.48% of its industry peers.
With an excellent Return On Equity value of 16.18%, LI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.08%, LI is doing good in the industry, outperforming 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 16.18% | ||
| ROIC | 4.08% |
ROA(3y)1.77%
ROA(5y)N/A
ROE(3y)4.73%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of LI (7.61%) is better than 85.71% of its industry peers.
The Operating Margin of LI (3.93%) is better than 78.57% of its industry peers.
LI has a better Gross Margin (21.61%) than 83.33% of its industry peers.
LI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 7.61% | ||
| GM | 21.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y10.66%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LI is destroying value.
LI has more shares outstanding than it did 1 year ago.
LI has a worse debt/assets ratio than last year.
2.2 Solvency
LI has an Altman-Z score of 2.81. 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.
With an excellent Altman-Z score value of 2.81, LI belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.05, LI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that LI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, LI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.05 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.41
WACC9.99%
2.3 Liquidity
LI has a Current Ratio of 1.76. 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 1.76. This is in the better half of the industry: LI outperforms 61.90% of its industry peers.
A Quick Ratio of 1.63 indicates that LI should not have too much problems paying its short term obligations.
LI's Quick ratio of 1.63 is fine compared to the rest of the industry. LI outperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
LI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.18%, which is quite impressive.
The Revenue has grown by 42.25% in the past year. This is a very strong growth!
LI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 135.72% yearly.
EPS 1Y (TTM)59.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-0.72%
Revenue 1Y (TTM)42.25%
Revenue growth 3Y135.72%
Revenue growth 5YN/A
Sales Q2Q%23.63%
3.2 Future
The Earnings Per Share is expected to grow by 8.57% on average over the next years. This is quite good.
Based on estimates for the next years, LI will show a very strong growth in Revenue. The Revenue will grow by 20.31% on average per year.
EPS Next Y-27.09%
EPS Next 2Y8.77%
EPS Next 3Y18.07%
EPS Next 5Y8.57%
Revenue Next Year18.1%
Revenue Next 2Y24.55%
Revenue Next 3Y23.58%
Revenue Next 5Y20.31%
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
LI is valuated rather expensively with a Price/Earnings ratio of 18.42.
LI's Price/Earnings ratio is rather cheap when compared to the industry. LI is cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.17. LI is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.41 indicates a correct valuation of LI.
Based on the Price/Forward Earnings ratio, LI is valued cheaper than 80.95% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LI to the average of the S&P500 Index (23.68), we can say LI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.42 | ||
| Fwd PE | 13.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LI is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LI indicates a rather cheap valuation: LI is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
LI has a very decent profitability rating, which 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.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.77%
EPS Next 3Y18.07%
5. Dividend
5.1 Amount
LI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LI AUTO INC - ADR
NASDAQ:LI (12/23/2024, 3:41:07 PM)
24.125
+0.57 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners22.79%
Inst Owner Change12.16%
Ins Owners18.58%
Ins Owner ChangeN/A
Market Cap25.60B
Analysts83.43
Price Target33.81 (40.15%)
Short Float %2.37%
Short Ratio4.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-46.17%
Min EPS beat(2)-78.27%
Max EPS beat(2)-14.08%
EPS beat(4)2
Avg EPS beat(4)39.44%
Min EPS beat(4)-78.27%
Max EPS beat(4)134.59%
EPS beat(8)5
Avg EPS beat(8)332.95%
EPS beat(12)6
Avg EPS beat(12)188.85%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.47%
Min Revenue beat(2)0.39%
Max Revenue beat(2)0.55%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.16%
Max Revenue beat(4)1.26%
Revenue beat(8)4
Avg Revenue beat(8)-0.64%
Revenue beat(12)6
Avg Revenue beat(12)-0.32%
Revenue beat(16)10
Avg Revenue beat(16)1.9%
PT rev (1m)7.97%
PT rev (3m)2.58%
EPS NQ rev (1m)3.4%
EPS NQ rev (3m)17.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.42 | ||
| Fwd PE | 13.41 | ||
| P/S | 1.4 | ||
| P/FCF | 6.8 | ||
| P/OCF | 6.67 | ||
| P/B | 2.97 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 11.09 |
EPS(TTM)1.31
EY5.43%
EPS(NY)1.8
Fwd EY7.46%
FCF(TTM)3.55
FCFY14.7%
OCF(TTM)3.62
OCFY15%
SpS17.27
BVpS8.12
TBVpS8
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 16.18% | ||
| ROCE | 6.36% | ||
| ROIC | 4.08% | ||
| ROICexc | 88.69% | ||
| ROICexgc | 109.71% | ||
| OM | 3.93% | ||
| PM (TTM) | 7.61% | ||
| GM | 21.61% | ||
| FCFM | 20.54% |
ROA(3y)1.77%
ROA(5y)N/A
ROE(3y)4.73%
ROE(5y)N/A
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 3Y10.66%
GM growth 5YN/A
F-Score6
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.05 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 396.79% | ||
| Profit Quality | 269.86% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.81 |
F-Score6
WACC9.99%
ROIC/WACC0.41
Cap/Depr(3y)455.46%
Cap/Depr(5y)N/A
Cap/Sales(3y)9.78%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-0.72%
EPS Next Y-27.09%
EPS Next 2Y8.77%
EPS Next 3Y18.07%
EPS Next 5Y8.57%
Revenue 1Y (TTM)42.25%
Revenue growth 3Y135.72%
Revenue growth 5YN/A
Sales Q2Q%23.63%
Revenue Next Year18.1%
Revenue Next 2Y24.55%
Revenue Next 3Y23.58%
Revenue Next 5Y20.31%
EBIT growth 1Y2364.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year29.03%
EBIT Next 3Y42.8%
EBIT Next 5Y26.21%
FCF growth 1Y292.49%
FCF growth 3Y161.73%
FCF growth 5YN/A
OCF growth 1Y212.49%
OCF growth 3Y152.75%
OCF growth 5YN/A