Li Auto, Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Minth Group Ltd.

Great Wall Motor Co., Ltd.

Yadea Group Holdings Ltd.

Li Auto, Inc.

Guangzhou Automobile Group Co., Ltd.

Zhejiang Leapmotor Technology Co., Ltd.

Dongfeng Motor Group Co., Ltd.

Brilliance China Automotive Holdings Ltd.

NIO, Inc.

XPeng, Inc.

Geely Automobile Holdings Ltd.

Why is Li Auto, Inc. ?

Poor Management Efficiency with a low ROE of 6.21%

The company has been able to generate a Return on Equity (avg) of 6.21% signifying low profitability per unit of shareholders funds

With ROE of 10.94%, it has a Very Expensive valuation with a 1.96 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.76%, its profits have fallen by -21%

Below par performance in long term as well as near term

Along with generating -23.76% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Li Auto, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Li Auto, Inc.

-25.28%

-0.26

52.78%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

114.72%

EBIT Growth (5y)

46.84%

EBIT to Interest (avg)

10.92

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.40

Sales to Capital Employed (avg)

0.82

Tax Ratio

13.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

6.21%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.96

EV to EBIT

6.16

EV to EBITDA

6.16

EV to Capital Employed

-1.94

EV to Sales

0.33

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

10.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Li Auto, Inc.

Net Sales - Quarterly

Highest at HKD 45,113 MM and Grown

in each of the last 5 periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Net Sales - Quarterly

At HKD 45,113 MM has Grown at 63.5 %

over average Net Sales of the previous four periods of HKD 27,590 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at HKD 3,257 MM. and Grown

in each of the last 5 periods

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (HKD MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At HKD 3,257 MM has Grown at 206.4 %

over average PBT of the previous four periods of HKD 1,063 MM

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (HKD MM)

Profit After Tax (PAT) - Quarterly

Highest at HKD 6,218 MM. and Grown

in each of the last 5 periods

MOJO Watch

Near term PAT trend is very positive

PAT (HKD MM)

Profit After Tax (PAT) - Quarterly

At HKD 6,218 MM has Grown at 251.4 %

over average PAT of the previous four periods of HKD 1,770 MM

MOJO Watch

Near term PAT trend is very positive

PAT (HKD MM)

Inventory Turnover Ratio- Half Yearly

Highest at 17.98 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow - Annually

Highest at HKD 56,016.24 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Operating Profit (PBDIT) - Quarterly

Highest at HKD 3,271 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Earnings per Share (EPS) - Quarterly

Highest at HKD 2.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Cash Equivalents - Half Yearly

Highest at HKD 100,554.28 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents (HKD MM)

Here's what is not working for Li Auto, Inc.

Debtors Turnover Ratio- Half Yearly

Lowest at 861.11 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at HKD 1,258 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income (HKD MM)