Li Auto Inc (LI, Financial), a leading player in the Vehicles & Parts industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen from $23.62 to $42.8, marking a substantial increase of 51.95%. Over the past week alone, the stock price has seen a gain of 9.35%. This impressive performance is reflected in the company's market capitalization, which currently stands at $42.63 billion.
According to GuruFocus.com's GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, Li Auto Inc is significantly undervalued. The current GF Value is $90.05, compared to $86.71 three months ago, indicating a potential for further growth in the stock price.
Company Overview
Li Auto Inc is a prominent Chinese NEV manufacturer that designs, develops, manufactures, and sells premium smart NEVs. The company started volume production of its first model, Li One, in November 2019. This model is a six-seater, large, premium plug-in electric SUV equipped with a range extension system and advanced smart vehicle solutions. In 2022, the company sold over 133,000 NEVs, accounting for about 2% of China's passenger new energy vehicle market. Beyond Li One, the company plans to expand its product line, including both BEVs and PHEVs, to target a broader consumer base.
Profitability Analysis
Li Auto Inc's Profitability Rank stands at 2/10, indicating that the company's profitability is relatively low compared to other companies in the industry. The company's operating margin is -0.35%, which is better than 20.16% of the companies in the industry. The ROE, ROA, and ROIC, which stand at 3.97%, 2.06%, and -1.23% respectively, also reflect the company's profitability status.
Growth Prospects
Despite the low profitability rank, Li Auto Inc has demonstrated impressive growth. The company's 3-Year Revenue Growth Rate per Share is 429.80%, which is better than 99.75% of the companies in the industry. The Total Revenue Growth Rate (Future 3Y To 5Y Est) is 74.28%, indicating strong future growth potential. The 3-Year EPS without NRI Growth Rate is 18.70%, which is better than 62.98% of the companies in the industry.
Major Stock Holders
Jim Simons (Trades, Portfolio) is the largest holder of Li Auto Inc's stock, holding 7,598,400 shares, which accounts for 0.78% of the total shares. The second-largest holder is the iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio), which holds 206,106 shares, accounting for 0.02% of the total shares. Philippe Laffont (Trades, Portfolio) holds 132,835 shares, accounting for 0.01% of the total shares.
Competitive Landscape
Li Auto Inc operates in a highly competitive industry, with major competitors including Rivian Automotive Inc (RIVN, Financial) with a market cap of $20.71 billion, XPeng Inc (XPEV, Financial) with a market cap of $16.37 billion, and NIO Inc (NIO, Financial) with a market cap of $18.29 billion. Despite the intense competition, Li Auto Inc's market cap of $42.63 billion indicates its strong market position.
Conclusion
In conclusion, Li Auto Inc has demonstrated impressive stock performance over the past three months, with a significant surge in its stock price. Despite its low profitability rank, the company has shown strong growth prospects, which, combined with its undervalued status according to the GF Value, indicate potential for further growth. However, the company operates in a highly competitive industry, and its future performance will depend on its ability to maintain its market position and continue its growth trajectory.
