LI AUTO INC - ADR (LI)
US50202M1027 - ADR
Overall LI gets a fundamental rating of 5 out of 10. We evaluated LI against 41 industry peers in the Automobiles industry. LI has an average financial health and profitability rating. LI is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year LI was profitable.
LI had negative earnings in 4 of the past 5 years.
Of the past 5 years LI 4 years had a positive operating cash flow.
1.2 Ratios
LI's Return On Assets of 7.01% is amongst the best of the industry. LI outperforms 90.24% of its industry peers.
LI has a Return On Equity of 16.18%. This is amongst the best in the industry. LI outperforms 85.37% of its industry peers.
LI has a better Return On Invested Capital (5.03%) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 16.18% | ||
| ROIC | 5.03% |
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
LI has a better Profit Margin (7.61%) than 85.37% of its industry peers.
LI's Operating Margin of 3.93% is fine compared to the rest of the industry. LI outperforms 73.17% of its industry peers.
Looking at the Gross Margin, with a value of 21.61%, LI belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
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.
Compared to 1 year ago, LI has more shares outstanding
The debt/assets ratio for LI is higher compared to a year ago.
2.2 Solvency
LI has an Altman-Z score of 2.74. 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.
The Altman-Z score of LI (2.74) is better than 85.37% of its industry peers.
LI has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
LI's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. LI outperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.74 |
ROIC/WACC0.55
WACC9.15%
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.
Looking at the Current ratio, with a value of 1.76, LI is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that LI should not have too much problems paying its short term obligations.
LI has a Quick ratio of 1.63. This is in the better half of the industry: LI outperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 137.92% over the past year.
LI shows a strong growth in Revenue. In the last year, the Revenue has grown by 173.48%.
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.
EPS 1Y (TTM)137.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%176.22%
Revenue 1Y (TTM)173.48%
Revenue growth 3Y135.72%
Revenue growth 5YN/A
Sales Q2Q%25.4%
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 21.99% on average per year.
EPS Next Y-27.11%
EPS Next 2Y8.76%
EPS Next 3Y18.06%
EPS Next 5Y8.57%
Revenue Next Year18.1%
Revenue Next 2Y24.55%
Revenue Next 3Y23.58%
Revenue Next 5Y21.99%
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 11.41 indicates a reasonable valuation of LI.
Based on the Price/Earnings ratio, LI is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. LI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.47, the valuation of LI can be described as correct.
80.49% of the companies in the same industry are more expensive than LI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, LI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LI is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.84 |
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 18.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.76%
EPS Next 3Y18.06%
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 (11/21/2024, 8:00:02 PM)
Premarket: 21.83 -0.77 (-3.41%)22.6
-0.18 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 12.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 16.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.93% | ||
| PM (TTM) | 7.61% | ||
| GM | 21.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)137.92%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-27.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)173.48%
Revenue growth 3Y135.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y