Li Auto Inc.
Li Auto Inc. Fundamental Analysis
Li Auto Inc. (LI) shows moderate financial fundamentals with a PE ratio of 28.46, profit margin of 3.59%, and ROE of 6.25%. The company generates $125.7B in annual revenue with strong year-over-year growth of 16.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LI's fundamental strength across five key dimensions:
Efficiency Score
WeakLI struggles to generate sufficient returns from assets.
Valuation Score
ModerateLI shows balanced valuation metrics.
Growth Score
ModerateLI shows steady but slowing expansion.
Financial Health Score
ExcellentLI maintains a strong and stable balance sheet.
Profitability Score
WeakLI struggles to sustain strong margins.
Key Financial Metrics
Is LI Expensive or Cheap?
P/E Ratio
LI trades at 28.46 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LI's PEG of -0.09 indicates potential undervaluation.
Price to Book
The market values Li Auto Inc. at 1.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 29.82 times EBITDA. This signals the market has high growth expectations.
How Well Does LI Make Money?
Net Profit Margin
For every $100 in sales, Li Auto Inc. keeps $3.59 as profit after all expenses.
Operating Margin
Core operations generate 2.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.25 in profit for every $100 of shareholder equity.
ROA
Li Auto Inc. generates $2.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Li Auto Inc. generates limited operating cash flow of $-3.45B, signaling weaker underlying cash strength.
Free Cash Flow
Li Auto Inc. generates weak or negative free cash flow of $-7.71B, restricting financial flexibility.
FCF Per Share
Each share generates $-7.64 in free cash annually.
FCF Yield
LI converts -6.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How LI Stacks Against Its Sector Peers
| Metric | LI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.46 | 24.85 | Worse (Expensive) |
| ROE | 6.25% | 1165.00% | Weak |
| Net Margin | 3.59% | 752.00% | Weak |
| Debt/Equity | 0.25 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.80 | 9.23 | Neutral |
| ROA | 2.94% | 1280.00% | Weak |
LI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Li Auto Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45908.50%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
400.87%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
904.49%
Industry Style: Cyclical, Growth, Discretionary
High Growth