Autohome Operating Margin vs. Current Valuation

ATHM Stock  USD 27.26  0.34  1.23%   
Based on the measurements of profitability obtained from Autohome's financial statements, Autohome may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Autohome's ability to earn profits and add value for shareholders.

Autohome Operating Profit Margin

0.15

At this time, Autohome's Days Sales Outstanding is very stable compared to the past year. As of the 25th of November 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.45, while EV To Sales is likely to drop 2.69. At this time, Autohome's Accumulated Other Comprehensive Income is very stable compared to the past year. As of the 25th of November 2024, Operating Income is likely to grow to about 1.4 B, while Net Income is likely to drop about 1.7 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.630.8035
Significantly Down
Pretty Stable
Net Profit Margin0.260.283
Significantly Down
Pretty Stable
Operating Profit Margin0.150.1583
Notably Down
Slightly volatile
Pretax Profit Margin0.410.2781
Way Up
Slightly volatile
Return On Assets0.06260.0659
Notably Down
Very volatile
Return On Equity0.08070.085
Notably Down
Slightly volatile
For Autohome profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Autohome to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Autohome utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Autohome's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Autohome over time as well as its relative position and ranking within its peers.
  
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Is Interactive Media & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Autohome. If investors know Autohome will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Autohome listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.24)
Dividend Share
8.155
Earnings Share
2.14
Revenue Per Share
59.124
Quarterly Revenue Growth
(0.07)
The market value of Autohome is measured differently than its book value, which is the value of Autohome that is recorded on the company's balance sheet. Investors also form their own opinion of Autohome's value that differs from its market value or its book value, called intrinsic value, which is Autohome's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Autohome's market value can be influenced by many factors that don't directly affect Autohome's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Autohome's value and its price as these two are different measures arrived at by different means. Investors typically determine if Autohome is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Autohome's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Autohome Current Valuation vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Autohome's current stock value. Our valuation model uses many indicators to compare Autohome value to that of its competitors to determine the firm's financial worth.
Autohome is rated below average in operating margin category among its peers. It is rated below average in current valuation category among its peers reporting about  3,333,183,112  of Current Valuation per Operating Margin. At this time, Autohome's Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Autohome by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Autohome Current Valuation vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Autohome

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.05 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Autohome

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
155.33 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Autohome Current Valuation vs Competition

Autohome is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Communication Services industry is presently estimated at about 428.9 Billion. Autohome adds roughly 155.33 Million in current valuation claiming only tiny portion of stocks in Communication Services industry.

Autohome Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Autohome, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Autohome will eventually generate negative long term returns. The profitability progress is the general direction of Autohome's change in net profit over the period of time. It can combine multiple indicators of Autohome, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income442.6 M464.8 M
Operating Income1.1 B1.4 B
Income Before TaxB1.8 B
Total Other Income Expense Net860.1 M903.1 M
Net Income1.9 B1.7 B
Income Tax Expense72.2 M68.5 M
Net Income Applicable To Common Shares2.1 B1.6 B
Net Income From Continuing Ops1.9 BB
Interest Income831 M431.4 M
Net Interest Income831 M476.6 M
Change To Netincome124.8 M180.6 M
Net Income Per Share 16.10  10.49 
Income Quality 1.27  1.43 
Net Income Per E B T 1.02  0.72 

Autohome Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Autohome. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Autohome position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Autohome's important profitability drivers and their relationship over time.

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When determining whether Autohome is a strong investment it is important to analyze Autohome's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Autohome's future performance. For an informed investment choice regarding Autohome Stock, refer to the following important reports:
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To learn how to invest in Autohome Stock, please use our How to Invest in Autohome guide.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
To fully project Autohome's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Autohome at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Autohome's income statement, its balance sheet, and the statement of cash flows.
Potential Autohome investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Autohome investors may work on each financial statement separately, they are all related. The changes in Autohome's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Autohome's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.