NYSE:ATHM

Stock Analysis Report

Executive Summary

Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China.

Rewards

PE ratio (23.1x) is below the Interactive Media and Services industry average (30.4x)

Earnings are forecast to grow 13.2% per year

Earnings grew by 20.1% over the past year

Risk Analysis

High level of non-cash earnings



Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Autohome's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATHM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

ATHM

2.5%

US Interactive Media and Services

1.2%

US Market


1 Year Return

18.6%

ATHM

37.1%

US Interactive Media and Services

24.2%

US Market

Return vs Industry: ATHM underperformed the US Interactive Media and Services industry which returned 33.3% over the past year.

Return vs Market: ATHM underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ATHMIndustryMarket
7 Day-0.4%2.5%1.2%
30 Day10.1%9.0%3.5%
90 Day2.7%18.3%11.7%
1 Year18.6%18.6%37.2%37.1%26.9%24.2%
3 Year189.5%186.5%62.7%62.5%53.0%43.2%
5 Year146.1%143.6%144.5%143.8%75.3%56.0%

Price Volatility Vs. Market

How volatile is Autohome's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Autohome undervalued compared to its fair value and its price relative to the market?

22.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ATHM ($88.05) is trading above our estimate of fair value ($76.54)

Significantly Below Fair Value: ATHM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ATHM is good value based on its PE Ratio (23.1x) compared to the Interactive Media and Services industry average (30.4x).

PE vs Market: ATHM is poor value based on its PE Ratio (23.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ATHM is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ATHM is overvalued based on its PB Ratio (5.3x) compared to the US Interactive Media and Services industry average (2.7x).


Next Steps

Future Growth

How is Autohome forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATHM's forecast earnings growth (13.2% per year) is above the savings rate (1.7%).

Earnings vs Market: ATHM's earnings (13.2% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: ATHM's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATHM's revenue (10.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: ATHM's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATHM's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has Autohome performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATHM has a high level of non-cash earnings.

Growing Profit Margin: ATHM's current net profit margins (37.5%) are lower than last year (38%).


Past Earnings Growth Analysis

Earnings Trend: ATHM's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: ATHM's earnings growth over the past year (20.1%) is below its 5-year average (31.9% per year).

Earnings vs Industry: ATHM earnings growth over the past year (20.1%) exceeded the Interactive Media and Services industry 15.9%.


Return on Equity

High ROE: ATHM's Return on Equity (23.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Autohome's financial position?


Financial Position Analysis

Short Term Liabilities: ATHM's short term assets (CN¥14.7B) exceed its short term liabilities (CN¥3.7B).

Long Term Liabilities: ATHM's short term assets (CN¥14.7B) exceed its long term liabilities (CN¥501.3M).


Debt to Equity History and Analysis

Debt Level: ATHM is debt free.

Reducing Debt: ATHM had no debt 5 years ago.

Debt Coverage: ATHM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ATHM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ATHM has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ATHM's debt is covered by short term assets.


Next Steps

Dividend

What is Autohome's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ATHM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ATHM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATHM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATHM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATHM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Autohome's salary, the management and board of directors tenure and is there insider trading?

0.2yrs

Average management tenure


CEO

Min Lu (58yo)

3.6yrs

Tenure

0

Mr. Min Lu serves as Chief Information Officer of Ping An Insurance (Group) Company of China Ltd. He has been the Chairman and Chief Executive Officer at Autohome Inc. since June 25, 2016. Mr. Lu serves a ...


Management Age and Tenure

0.2yrs

Average Tenure

48yo

Average Age

Experienced Management: ATHM's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Age and Tenure

3.6yrs

Average Tenure

54yo

Average Age

Experienced Board: ATHM's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jun Zou (48yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
  • Min Lu (58yo)

    Chairman & CEO

    • Tenure: 3.6yrs
  • Haifeng Shao (47yo)

    Co-President

    • Tenure: 0.2yrs
  • Anita Chen

    Head of Investor Relations

    • Jingyu Zhang

      Co-President

      • Tenure: 0.2yrs
    • Xiao Wang

      Chief Technology Officer

      • Tenure: 0.2yrs

    Board Members

    • Dazong Wang (65yo)

      Independent Director

      • Tenure: 3.1yrs
    • Junling Liu (54yo)

      Independent Director

      • Tenure: 5yrs
    • Robert Pu (50yo)

      Independent Director

      • Tenure: 3.1yrs
    • Dong Liu (55yo)

      Director

      • Tenure: 3.6yrs
    • Min Lu (58yo)

      Chairman & CEO

      • Tenure: 3.6yrs
    • Han Qiu (44yo)

      Director

      • Tenure: 3.6yrs
    • Zheng Liu (50yo)

      Director

      • Tenure: 2.1yrs

    Company Information

    Autohome Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Autohome Inc.
    • Ticker: ATHM
    • Exchange: NYSE
    • Founded: 2008
    • Industry: Interactive Media and Services
    • Sector: Media
    • Market Cap: US$10.387b
    • Shares outstanding: 118.38m
    • Website: https://www.autohome.com.cn

    Number of Employees


    Location

    • Autohome Inc.
    • CEC Plaza, Tower B
    • 10th Floor
    • Beijing
    • 100080
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ATHMNYSE (New York Stock Exchange)YesADS EACH REPR 1 CL 'A' ORD USD0.01USUSDDec 2013
    ATHM NBMV (Bolsa Mexicana de Valores)YesADS EACH REPR 1 CL 'A' ORD USD0.01MXMXNDec 2013

    Biography

    Autohome Inc. operates as an online destination for automobile consumers in the People’s Republic of China. The company, through its Websites, autohome.com.cn and che168.com, delivers comprehensive, independent, and interactive content to automobile buyers and owners, including company generated content, such as automobile-related articles and reviews, pricing trends in various local markets, photographs, video clips, and live streaming; automobile library, which comprises a range of specifications covering performance levels, dimensions, powertrains, vehicle bodies, interiors, safety, entertainment systems, and other features, as well as manufacturers’ suggested retail prices; new and used automobile listings, and promotional information; and user generated content and forums. It also offers advertising services for automakers and dealers; dealer subscription services that allow dealers to market their inventory and services through its Websites and mobile applications; and used automobile listings services, which allow used automobile dealers and individuals to market their automobiles for sale on its Websites. In addition, Autohome Inc. operates Autohome Mall, an online transaction platform that facilitates direct vehicle sales and commission-based services; provides iOS- and Android-based applications to allow its users to access its content; and offers technical support and management consulting services. The company was formerly known as Sequel Limited and changed its name to Autohome Inc. in October 2011. Autohome Inc. was founded in 2008 and is headquartered in Beijing, the People’s Republic of China. Autohome Inc. is a subsidiary of Yun Chen Capital Cayman. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/21 01:00
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.