Autohome Inc ($ATHM) Cautious Buy or Hold to $86 Confident Investor Rating: Fair
| Company name | Autohome Inc |
| Stock ticker | ATHM |
| Live stock price | [stckqut]ATHM[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Poor |
| P/E growth | Poor |
| EBIT growth | Good |
| Price growth | Good |
| R&D growth | Poor |
| Income growth | Fair |
| Assets growth | Good |
| Return on Assets growth | Poor |
| Income / Rev growth | Poor |
| TWCA Plus | Good |
| Standard TWCA | Good |
| Weighted ann. stock price increase | Good |
ANALYSIS
| Confident Investor Rating | Fair |
| Target stock price (TWCA growth scenario) | $129.93 |
| Target stock price (averages with growth) | $90.25 |
| Target stock price (averages with no growth) | $80.61 |
| Target stock price (manual assumptions) | $90.68 |
The following company description is from Reuters: https://finance.yahoo.com/quote/athm/profile?p=athm
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, and its mobile applications and mini apps, delivers comprehensive, independent, and interactive content to automobile consumers. It provides media services, including automaker advertising services and regional marketing campaigns; and leads generation services comprising dealer subscription services, advertising services for individual dealers, and used automobile listing and other platform-based services. The company also offers Autohome Mall, an online transaction platform for users to review automotive-related information, purchase coupons offered by automakers for discounts, and make purchases to complete the transaction; data products; and online bidding platform for used automobiles, as well as facilitating transactions of auto-financing and insurance products on its platform. 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.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Autohome Inc as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns. Because Autohome barely made it past the threshold as being a Fair company, I am going to remove the company from my Watch List to make room for a higher-performing company.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Autohome Inc calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $84.14
- Growth: 0.137433333333333
- Current EPS (TTM): $3.52333333333333
- P/E: 21.771984934116
- Future EPS Calc: $6.7
- Future Stock Price Calc: $146.04
- Target stock price: $90.68
[/s2If]
I hope that this makes you a Confident Investor.