Li Auto Inc. American Depositary Shares (LI)

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, generate cash, and sell at a sensible price. Li Auto fails the first two tests today. The company designs and sells premium smart EVs in China, but in the latest reported quarter—fiscal Q2 2026—revenue was $25.7B and net income was -$1.7B, a -6.64% net margin. Trailing free cash flow was -$15.1B, and the FairStock FCF yield is -79.5%. That means the business is consuming enormous capital, not producing it. The supplied growth figures also show sharp declines, with revenue growth of -35.01% and profit growth of -99.81%, though the data do not label the exact period for those growth rates. On the close of 2026-10-13, FairStock calculates a P/B of 1.19 and a negative P/E of -17.28. ROE is -6.57% and ROCE is -2.79%. The Altman Z-score of 0.73 signals distress risk. The Piotroski F-score of 7/9 is a modest positive, suggesting some accounting strengths, but it does not offset the cash burn. Debt/equity of 0.22 is not alarming, and beta of 0.54 suggests the stock has been less volatile than the market. Still, the FairStock score is 20/100. The stock is near the low end of its 52-week range, and price to book is low, but Graham would ask what book value is worth if the company keeps losing money. Without evidence of durable competitive advantage or positive cash generation, this is speculative. I would rather wait for margins and free cash flow to turn positive before calling it a value investment. The Lynch category is none, because only 0 years of filed annual results are available and at least 3 are needed.

In plain English: Li Auto makes premium smart electric vehicles in China. The latest reported quarter showed a loss, and the company used more cash than it brought in over the past year, so the business looks financially weak right now. The stock is near the low end of its 52-week range and trades at a low price compared with its accounting book value, but without profits it is hard to call it cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer