LI AUTO INC - ADR (LI) Stock Fundamental Analysis
NASDAQ:LI - Nasdaq - US50202M1027 - ADR - Currency: USD
LI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, LI could be worth investigating further for value 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's Return On Assets of 4.95% is amongst the best of the industry. LI outperforms 90.24% of its industry peers.
Looking at the Return On Equity, with a value of 11.33%, LI belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.68%, LI belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
| 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 has a better Profit Margin (5.56%) than 90.24% of its industry peers.
LI has a Operating Margin of 4.86%. This is amongst the best in the industry. LI outperforms 82.93% of its industry peers.
The Gross Margin of LI (20.53%) is better than 78.05% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LI is destroying value.
Compared to 1 year ago, LI has more shares outstanding
The debt/assets ratio for LI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.73 indicates that LI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LI (2.73) is better than 85.37% of its industry peers.
LI has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as LI would need 2.77 years to pay back of all of its debts.
LI's Debt to FCF ratio of 2.77 is amongst the best of the industry. LI outperforms 92.68% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that LI is not too dependend on debt financing.
LI's Debt to Equity ratio of 0.32 is fine compared to the rest of the industry. LI outperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.43
WACC13.3%
2.3 Liquidity
A Current Ratio of 1.82 indicates that LI should not have too much problems paying its short term obligations.
LI's Current ratio of 1.82 is fine compared to the rest of the industry. LI outperforms 70.73% 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's Quick ratio of 1.71 is amongst the best of the industry. LI outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
LI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.77%.
LI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.64%.
The Revenue has been growing by 247.68% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-31.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.97%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%6.09%
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 24.45% on average per year.
LI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.91% yearly.
EPS Next Y48.67%
EPS Next 2Y47.77%
EPS Next 3Y41.76%
EPS Next 5Y24.45%
Revenue Next Year29.6%
Revenue Next 2Y26.78%
Revenue Next 3Y24.39%
Revenue Next 5Y15.92%
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
A Price/Earnings ratio of 22.17 indicates a rather expensive valuation of LI.
Compared to the rest of the industry, the Price/Earnings ratio of LI indicates a somewhat cheap valuation: LI is cheaper than 78.05% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. LI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.87, which indicates a correct valuation of LI.
LI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LI is cheaper than 78.05% of the companies in the same industry.
LI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 14.87 |
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 95.12% 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 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.75 | ||
| EV/EBITDA | 2.98 |
4.3 Compensation for Growth
LI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LI 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)0.46
PEG (5Y)N/A
EPS Next 2Y47.77%
EPS Next 3Y41.76%
5. Dividend
5.1 Amount
No dividends for LI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LI (4/21/2025, 9:42:46 AM)
22.84
-0.28 (-1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners23.37%
Inst Owner Change0.21%
Ins Owners18.59%
Ins Owner ChangeN/A
Market Cap24.45B
Analysts84
Price Target35.09 (53.63%)
Short Float %5.19%
Short Ratio4.67
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)4.37%
PT rev (3m)9.3%
EPS NQ rev (1m)-6.3%
EPS NQ rev (3m)-20.82%
EPS NY rev (1m)-16.94%
EPS NY rev (3m)-14.59%
Revenue NQ rev (1m)-4.6%
Revenue NQ rev (3m)-14.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 14.87 | ||
| P/S | 1.24 | ||
| P/FCF | 21.75 | ||
| P/OCF | 11.2 | ||
| P/B | 2.52 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 2.98 |
EPS(TTM)1.03
EY4.51%
EPS(NY)1.54
Fwd EY6.73%
FCF(TTM)1.05
FCFY4.6%
OCF(TTM)2.04
OCFY8.93%
SpS18.49
BVpS9.07
TBVpS8.96
PEG (NY)0.46
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 | 2.73 |
F-Score5
WACC13.3%
ROIC/WACC0.43
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)-31.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-37.97%
EPS Next Y48.67%
EPS Next 2Y47.77%
EPS Next 3Y41.76%
EPS Next 5Y24.45%
Revenue 1Y (TTM)16.64%
Revenue growth 3Y74.88%
Revenue growth 5Y247.68%
Sales Q2Q%6.09%
Revenue Next Year29.6%
Revenue Next 2Y26.78%
Revenue Next 3Y24.39%
Revenue Next 5Y15.92%
EBIT growth 1Y-5.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year110.29%
EBIT Next 3Y56.45%
EBIT Next 5Y29.82%
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