Is Li Auto Stock a Good Investment?

Li Auto Investment Advice

To provide specific investment advice or recommendations on Li Auto stock, we recommend investors consider the following general factors when evaluating Li Auto. This will help you to make an informed decision on whether to include Li Auto in one of your diversified portfolios:

Examine Li Auto's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Li Auto's leadership team and their track record. Good management can help Li Auto navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Automobile Manufacturers space and any emerging trends that could impact Li Auto's business and its evolving consumer preferences.
Compare Li Auto's performance and market position to its competitors. Analyze how Li Auto is positioned in terms of product offerings, innovation, and market share.
Check if Li Auto pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Li Auto's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Li Auto stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Li Auto is a good investment.

Sell

Buy

Strong Sell

Our advice module complements current analysts and expert consensus on Li Auto. It analyzes the company potential to grow using all fundamental, technical, and market related data available right now. To make sure Li Auto is not overpriced, please verify all Li Auto fundamentals, including its shares outstanding, net income, short ratio, as well as the relationship between the price to sales and debt to equity . Given that Li Auto has a price to book of 2.73 X, we recommend you to check Li Auto market performance and probability of bankruptcy to ensure the company can sustain itself in the future given your latest risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Not too volatile	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Strong	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Li Auto Stock

Researching Li Auto's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The book value of the company was now reported as 66.73. The company has Price/Earnings To Growth (PEG) ratio of 1.24. Li Auto had not issued any dividends in recent years.

To determine if Li Auto is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Li Auto's research are outlined below:

	Li Auto had very high historical volatility over the last 90 days
	Li Auto is unlikely to experience financial distress in the next 2 years
	Li Auto has a strong financial position based on the latest SEC filings
	Latest headline from marketbeat.com: Trump Tariffs in Focus 2 Chinese Stocks to Own and 2 to Avoid

Li Auto Quarterly Long Term Debt

7.94 Billion

Li Auto uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Li Auto. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Li Auto's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	26th of February 2024 Upcoming Quarterly Report	View
	8th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	26th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Li Auto's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Li Auto's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2024-10-31	2024-09-30	0.32	0.3695	0.0495	15
2024-08-06	2024-06-30	0.25	0.15	-0.1	40
2021-11-29	2021-09-30	-0.14	-0.02	0.12	85
2023-02-27	2022-12-31	0.1	0.25	0.15	150
2021-08-30	2021-06-30	-0.04	-0.26	-0.22	550
2022-08-15	2022-06-30	-0.4	-0.64	-0.24	60
2021-05-26	2021-03-31	-0.14	-0.4	-0.26	185
2021-02-25	2020-12-31	-0.21	0.12	0.33	157

Know Li Auto's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Li Auto is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Li Auto backward and forwards among themselves. Li Auto's institutional investor refers to the entity that pools money to purchase Li Auto's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Viking Global Investors Lp	2024-09-30	2.1 M
Jane Street Group Llc	2024-06-30	1.6 M
Squarepoint Ops Llc	2024-06-30	1.6 M
Citadel Advisors Llc	2024-09-30	1.5 M
Norges Bank	2024-06-30	1.5 M
Goldman Sachs Group Inc	2024-06-30	1.5 M
Bnp Paribas Investment Partners Sa	2024-06-30	1.2 M
Blackrock Inc	2024-06-30	1.1 M
American Century Companies Inc	2024-09-30	874.9 K
Morgan Stanley - Brokerage Accounts	2024-06-30	8.2 M
Renaissance Technologies Corp	2024-09-30	7.7 M

Note, although Li Auto's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Li Auto's market capitalization trends

The company currently falls under 'Large-Cap' category with a market capitalization of 24.13 B.

Market Cap

166.93 Billion

Li Auto's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.08	0.09
Return On Capital Employed	0.10	0.11
Return On Assets	0.08	0.09
Return On Equity	0.19	0.20

The company has Net Profit Margin (PM) of 0.07 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.08 %, which signifies that for every $100 of sales, it has a net operating income of $0.08.

Determining Li Auto's profitability involves analyzing its financial statements and using various financial metrics to determine if Li Auto is a good buy. For example, gross profit margin measures Li Auto's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Li Auto's profitability and make more informed investment decisions.

Evaluate Li Auto's management efficiency

Li Auto has Return on Asset (ROA) of 0.0289 % which means that for every $100 of assets, it generated a profit of $0.0289. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.1697 %, which means that it produced $0.1697 on every 100 dollars invested by current stockholders. Li Auto's management efficiency ratios could be used to measure how well Li Auto manages its routine affairs as well as how well it operates its assets and liabilities. The Li Auto's current Return On Tangible Assets is estimated to increase to 0.09. The Li Auto's current Return On Capital Employed is estimated to increase to 0.11. As of now, Li Auto's Non Currrent Assets Other are increasing as compared to previous years. The Li Auto's current Other Assets is estimated to increase to about 3 B, while Other Current Assets are projected to decrease to under 2.3 B.

	Last Reported	Projected for Next Year
Book Value Per Share	57.43	60.30
Tangible Book Value Per Share	56.61	59.44
Enterprise Value Over EBITDA	6.02	5.72
Price Book Value Ratio	2.22	2.33
Enterprise Value Multiple	6.02	5.72
Price Fair Value	2.22	2.33
Enterprise Value	55.4 B	52.7 B

The operational strategies employed by Li Auto management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.

Beta

0.976

Basic technical analysis of Li Auto Stock

As of the 30th of November, Li Auto owns the Mean Deviation of 3.31, standard deviation of 4.57, and Market Risk Adjusted Performance of 1.48. In respect to fundamental indicators, the technical analysis model lets you check possible technical drivers of Li Auto, as well as the relationship between them.

Li Auto's Outstanding Corporate Bonds

Li Auto issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Li Auto uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Li Auto bonds can be classified according to their maturity, which is the date when Li Auto has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Leo Cable 675 Corp Bond US50201DAA19	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	US50201DAD57 Corp Bond US50201DAD57	View
	LLPLCA 6875 04 FEB 39 Corp Bond US50201PAA49	View
	CINCON 3797 31 DEC 57 Corp Bond US50203UAA16	View
	US50203TAA43 Corp Bond US50203TAA43	View

View All Li Auto Corporate Bonds

Understand Li Auto's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Li Auto's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0979
	Market Risk Adjusted Performance	1.48
	Mean Deviation	3.31
	Semi Deviation	3.96
	Downside Deviation	4.29
	Coefficient Of Variation	853.55
	Standard Deviation	4.57
	Variance	20.92
	Information Ratio	0.0871
	Jensen Alpha	0.4802
	Total Risk Alpha	(0.24)
	Sortino Ratio	0.0928
	Treynor Ratio	1.47
	Maximum Drawdown	25.86
	Value At Risk	(7.07)
	Potential Upside	10.62
	Downside Variance	18.42
	Semi Variance	15.64
	Expected Short fall	(3.63)
	Skewness	0.1447
	Kurtosis	1.52

	Risk Adjusted Performance	0.0979
	Market Risk Adjusted Performance	1.48
	Mean Deviation	3.31
	Semi Deviation	3.96
	Downside Deviation	4.29
	Coefficient Of Variation	853.55
	Standard Deviation	4.57
	Variance	20.92
	Information Ratio	0.0871
	Jensen Alpha	0.4802
	Total Risk Alpha	(0.24)
	Sortino Ratio	0.0928
	Treynor Ratio	1.47
	Maximum Drawdown	25.86
	Value At Risk	(7.07)
	Potential Upside	10.62
	Downside Variance	18.42
	Semi Variance	15.64
	Expected Short fall	(3.63)
	Skewness	0.1447
	Kurtosis	1.52

Consider Li Auto's intraday indicators

Li Auto intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Li Auto stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	285312.0
	Daily Balance Of Power	0.3217
	Rate Of Daily Change	1.02
	Day Median Price	23.56
	Day Typical Price	23.6
	Price Action Indicator	0.31
	Period Momentum Indicator	0.37
	Relative Strength Index	38.24

Li Auto Corporate Filings

6K	6th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	30th of April 2024 Other Reports	View Verify

Li Auto time-series forecasting models is one of many Li Auto's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Li Auto's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Li Auto Stock media impact

Far too much social signal, news, headlines, and media speculation about Li Auto that are available to investors today. That information is available publicly through Li Auto media outlets and privately through word of mouth or via Li Auto internal channels. However, regardless of the origin, that massive amount of Li Auto data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Li Auto news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Li Auto relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Li Auto's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Li Auto alpha.

Li Auto Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Li Auto can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Li Auto Historical Investor Sentiment

Investor biases related to Li Auto's public news can be used to forecast risks associated with an investment in Li Auto. The trend in average sentiment can be used to explain how an investor holding Li Auto can time the market purely based on public headlines and social activities around Li Auto. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Li Auto's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Li Auto and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Li Auto news discussions. The higher the estimate score, the more favorable the investor's outlook on Li Auto.