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Autohome Inc.

Autohome Inc. Fundamental Analysis

2518.HKHKSE
Communication ServicesInternet Content & Information
HK$41.54
HK$0.06(0.14%)
Hong Kong Market opens in 12h 19m

Autohome Inc. Fundamental Analysis

Autohome Inc. (2518.HK) shows moderate financial fundamentals with a PE ratio of 9.45, profit margin of 18.07%, and ROE of 4.64%. The company generates $6.0B in annual revenue with N/A year-over-year growth of N/A.

Key Strengths

Cash Position95.86%
PEG Ratio-0.21
Current Ratio8.15

Areas of Concern

ROE4.64%
Operating Margin8.29%
We analyze 2518.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 63.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.

Fundamental Health Score

C+
63.3/100

We analyze 2518.HK's fundamental strength across five key dimensions:

Efficiency Score

Weak

2518.HK struggles to generate sufficient returns from assets.

ROA > 10%
4.02%

Valuation Score

Excellent

2518.HK trades at attractive valuation levels.

PE < 25
9.45
PEG Ratio < 2
-0.21

Growth Score

Moderate

2518.HK shows steady but slowing expansion.

Revenue Growth > 5%
N/A
EPS Growth > 10%
N/A

Financial Health Score

Excellent

2518.HK maintains a strong and stable balance sheet.

Debt/Equity < 1
0.00
Current Ratio > 1
8.15

Profitability Score

Moderate

2518.HK maintains healthy but balanced margins.

ROE > 15%
4.64%
Net Margin ≥ 15%
18.07%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is 2518.HK Expensive or Cheap?

P/E Ratio

2518.HK trades at 9.45 times earnings. This suggests potential undervaluation.

9.45

PEG Ratio

When adjusting for growth, 2518.HK's PEG of -0.21 indicates potential undervaluation.

-0.21

Price to Book

The market values Autohome Inc. at 0.72 times its book value. This may indicate undervaluation.

0.72

EV/EBITDA

Enterprise value stands at 30.30 times EBITDA. This signals the market has high growth expectations.

30.30

How Well Does 2518.HK Make Money?

Net Profit Margin

For every $100 in sales, Autohome Inc. keeps $18.07 as profit after all expenses.

18.07%

Operating Margin

Core operations generate 8.29 in profit for every $100 in revenue, before interest and taxes.

8.29%

ROE

Management delivers $4.64 in profit for every $100 of shareholder equity.

4.64%

ROA

Autohome Inc. generates $4.02 in profit for every $100 in assets, demonstrating efficient asset deployment.

4.02%

Following the Money - Real Cash Generation

Operating Cash Flow

Autohome Inc. produces operating cash flow of $889.58M, showing steady but balanced cash generation.

$889.58M

Free Cash Flow

Autohome Inc. generates strong free cash flow of $771.51M, providing ample flexibility for dividends, buybacks, or growth.

$771.51M

FCF Per Share

Each share generates $1.67 in free cash annually.

$1.67

FCF Yield

2518.HK converts 4.65% of its market value into free cash.

4.65%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

9.45

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

-0.21

vs 25 benchmark

P/B Ratio

Price to book value ratio

0.72

vs 25 benchmark

P/S Ratio

Price to sales ratio

2.74

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.002

vs 25 benchmark

Current Ratio

Current assets to current liabilities

8.15

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.05

vs 25 benchmark

ROA

Return on assets percentage

0.04

vs 25 benchmark

ROCE

Return on capital employed

0.02

vs 25 benchmark

How 2518.HK Stacks Against Its Sector Peers

Metric2518.HK ValueSector AveragePerformance
P/E Ratio9.4521.04 Better (Cheaper)
ROE4.64%557.00% Weak
Net Margin18.07%139.00% Weak
Debt/Equity0.000.83 Strong (Low Leverage)
Current Ratio8.151.89 Strong Liquidity
ROA4.02%266.00% Weak

2518.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Autohome Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

N/A

Industry Style: Growth, Technology, Streaming

EPS CAGR

N/A

Industry Style: Growth, Technology, Streaming

FCF CAGR

N/A

Industry Style: Growth, Technology, Streaming

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