Autohome Return On Equity vs. Return On Asset

ATHM Stock  USD 27.03  0.05  0.18%   
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.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.08497848
Current Value
0.0807
Quarterly Volatility
2.80484406
 
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Covid
At this time, Autohome's Days Sales Outstanding is very stable compared to the past year. As of the 28th 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 28th 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 Return On Asset vs. Return On Equity 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 fifth in return on equity category among its peers. It also is rated fifth in return on asset category among its peers reporting about  0.35  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Autohome is roughly  2.87 . At this time, Autohome's Return On Equity 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 Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Autohome

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0675
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Autohome

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0235
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Autohome Return On Asset Comparison

Autohome is currently under evaluation in return on asset category among its peers.

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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Our tools can tell you how much better you can do entering a position in Autohome without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Autohome position

In addition to having Autohome in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Convertibles Funds
Convertibles Funds Theme
Funds or Etfs that invest in debt that is expected to be converted into a predetermined amount of the company equity at some future date. The Convertibles Funds theme has 12 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Convertibles Funds Theme or any other thematic opportunities.
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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.