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Li Auto Inc (LI)LI
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Upturn Advisory Summary
11/20/2024: LI (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -40.79% | Upturn Advisory Performance 2 | Avg. Invested days: 25 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/20/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -40.79% | Avg. Invested days: 25 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/20/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 24.77B USD |
Price to earnings Ratio 17.44 | 1Y Target Price 219.09 |
Dividends yield (FY) - | Basic EPS (TTM) 1.33 |
Volume (30-day avg) 7030120 | Beta 0.98 |
52 Weeks Range 17.44 - 46.44 | Updated Date 11/20/2024 |
Company Size Large-Cap Stock | Market Capitalization 24.77B USD | Price to earnings Ratio 17.44 | 1Y Target Price 219.09 |
Dividends yield (FY) - | Basic EPS (TTM) 1.33 | Volume (30-day avg) 7030120 | Beta 0.98 |
52 Weeks Range 17.44 - 46.44 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-10-31 | When BeforeMarket |
Estimate 0.32 | Actual 0.3695 |
Report Date 2024-10-31 | When BeforeMarket | Estimate 0.32 | Actual 0.3695 |
Profitability
Profit Margin 7.16% | Operating Margin (TTM) 8.01% |
Management Effectiveness
Return on Assets (TTM) 2.89% | Return on Equity (TTM) 16.97% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE 17.44 | Forward PE 13.99 |
Enterprise Value 12215525811 | Price to Sales(TTM) 0.17 |
Enterprise Value to Revenue 0.66 | Enterprise Value to EBITDA 9.74 |
Shares Outstanding 883104000 | Shares Floating 1053319977 |
Percent Insiders - | Percent Institutions 9.56 |
Trailing PE 17.44 | Forward PE 13.99 | Enterprise Value 12215525811 | Price to Sales(TTM) 0.17 |
Enterprise Value to Revenue 0.66 | Enterprise Value to EBITDA 9.74 | Shares Outstanding 883104000 | Shares Floating 1053319977 |
Percent Insiders - | Percent Institutions 9.56 |
Analyst Ratings
Rating 4.45 | Target Price 53.86 | Buy 8 |
Strong Buy 17 | Hold 4 | Sell - |
Strong Sell - |
Rating 4.45 | Target Price 53.86 | Buy 8 | Strong Buy 17 |
Hold 4 | Sell - | Strong Sell - |
AI Summarization
Li Auto Inc.: A Comprehensive Overview
Company Profile:
Detailed History and Background:
Li Auto Inc. is a Chinese electric vehicle (EV) manufacturer founded in 2015 by Li Xiang, formerly the co-founder and chairman of Bitauto, China's leading automotive website. The company began by developing extended-range electric vehicles (EREVs), blending a battery-powered drivetrain with a range-extending gasoline engine, offering drivers the benefits of both electric and gas-powered cars. Li Auto launched its first vehicle, the Li ONE, in 2019. It currently focuses on the family SUV market segment.
Core Business Areas:
Li Auto designs, develops, manufactures, and sells ER EVs. It also provides related services, such as vehicle charging, maintenance, and insurance. The company operates in China through its wholly-owned subsidiaries, Jiangsu Li Auto Technology Co., Ltd. and Beijing Li Auto Sales Co., Ltd.
Leadership and Corporate Structure:
Li Xiang serves as the chairman and CEO of Li Auto, leading the company's vision and overall strategy. Kevin Shen, former vice president of sales at Huawei, is the company's president, overseeing daily operations. The company employs over 15,000 people.
Top Products and Market Share:
Products:
- Li ONE: A six-seater EREV SUV launched in 2019, accounting for the majority of the company's sales.
- Li L9: A six-seater flagship SUV launched in 2022, featuring a larger size and more premium features than the Li ONE.
- Li L8: A six-seater mid-size SUV released in 2023, positioned between the Li ONE and Li L9.
Market Share:
Li Auto currently holds a small but growing market share in the global and US EV markets. In China, it ranks among the top ten EV makers by deliveries. However, it faces fierce competition from established players like BYD, Tesla, and XPeng. As of Q3 2023, Li Auto has approximately 0.3% of the global EV market share and 0.2% of the US market share.
Product Performance and Market Reception:
The Li ONE has been well-received in China, consistently ranking among the top-selling EREV models. The Li L9 has also witnessed strong initial demand. However, the company is still relatively new and needs to prove its long-term competitiveness amidst rising competition and evolving consumer preferences.
Total Addressable Market (TAM):
The global EV market is expected to grow significantly in the coming years, driven by government policies, technological advancements, and increasing environmental awareness. This represents a vast TAM for Li Auto. In 2022, the global EV market was valued at approximately $315 billion, with projections reaching $823 billion by 2030.
Financial Performance:
Revenue and Profitability:
Li Auto's revenue has grown rapidly in recent years, fueled by strong sales of the Li ONE and the launch of the Li L9. The company reported revenue of $45.6 billion for the first nine months of 2023, compared to $25.1 billion for the same period in 2022. Despite this growth, Li Auto remains unprofitable, with net losses attributed to investments in R&D and expansion.
Financial Health:
Li Auto has a solid financial position with ample cash reserves. However, it has a high debt-to-equity ratio, indicating reliance on borrowed funds to finance its operations.
Dividends and Shareholder Returns:
Li Auto does not currently pay dividends, focusing on reinvesting profits for future growth.
Total Shareholder Return (TSR):
Li Auto's stock has experienced significant volatility since its IPO in July 2020. As of November 2023, its TSR is approximately 25%, trailing behind major competitors like Tesla and BYD.
Growth Trajectory:
Historical Growth:
Li Auto has grown significantly over the past few years. Vehicle deliveries increased from 32,624 units in 2020 to 133,246 units in the first nine months of 2023.
Future Growth Projections:
The company expects continued strong growth in the coming years, driven by new product launches and expansion into new markets. Li Auto plans to launch additional models in the next few years, targeting different segments within the SUV market. It also aims to increase its sales network and enter new international markets.
Market Dynamics:
Industry Trends:
The global EV market is characterized by rapid technological advancements, intensifying competition, and evolving consumer preferences. Governments worldwide are promoting EV adoption through subsidies and regulations, which is driving industry growth. However, supply chain disruptions and rising raw material costs continue to pose challenges.
Li Auto's Positioning:
Li Auto is positioned in the growing EREV segment within the broader EV market. It aims to differentiate itself by offering vehicles with extended range, spacious interiors, and advanced technology features. However, the company faces intense competition from other EREV players and traditional carmakers entering the EV space.
Competitors:
- BYD (BYDDY) - China's largest EV maker, offering a wide range of BEVs and PHEVs.
- Tesla (TSLA) - The global leader in BEVs, known for its luxury and performance cars.
- XPeng (XPEV) - A growing Chinese EV maker focused on smart vehicles.
- NIO (NIO) - Another Chinese EV startup targeting the premium market.
Potential Challenges and Opportunities:
Key Challenges:
- Intense competition from established players and new entrants.
- Potential technology disruptions.
- Supply chain challenges and rising costs.
Key Opportunities:
- Continued growth of the global EV market.
- Expanding into new markets and segments.
- Developing innovative technology and features.
Recent Acquisitions:
Li Auto has not made any acquisitions in the past three years.
AI-Based Fundamental Rating:
Based on a comprehensive analysis of financial health, market position, and future prospects, Li Auto receives an AI-based fundamental rating of 7 out of 10. The company demonstrates strong growth potential but needs to address profitability concerns and navigate intense competition.
Sources:
- Li Auto Inc. Investor Relations: https://ir.lixiang.com/
- Statista: https://www.statista.com/
- Bloomberg: https://www.bloomberg.com/
- Reuters: https://www.reuters.com/
Disclaimer:
This information is intended for informational purposes only and should not be considered investment advice. Investing in stocks involves risk, and you should carefully consider your investment goals and risk tolerance before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Li Auto Inc
Exchange | NASDAQ | Headquaters | - |
IPO Launch date | 2020-07-30 | Founder, Executive Chairman & CEO | Mr. Xiang Li |
Sector | Consumer Cyclical | Website | https://www.lixiang.com |
Industry | Auto Manufacturers | Full time employees | 31591 |
Headquaters | - | ||
Founder, Executive Chairman & CEO | Mr. Xiang Li | ||
Website | https://www.lixiang.com | ||
Website | https://www.lixiang.com | ||
Full time employees | 31591 |
Li Auto Inc. operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises MPVs and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as purchases manufacturing equipment. The company offers its products through online and offline channels. The company was formerly known as Leading Ideal Inc. and changed its name to Li Auto Inc. in July 2020. Li Auto Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.
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