Atour Lifestyle Holdings (ATAT) AI Stock Analysis

• Market Cap: $4.26B
• Dividend Yield: 1.39%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.52
• Revenue Growth: 53.63%
• EPS Growth: 70.07%
• Country: US
• Employees: 5,488
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Travel Lodging
• EPS (TTM): 0.34
• Shares Outstanding: 113,625,650
• 10 Day Avg. Volume: 1,240,618
• 30 Day Avg. Volume: 1,665,012
• PEG Ratio: 2.13
• Price to Book (P/B): 11.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $36.33
• Price Target Upside: 20.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: ―

Atour Lifestyle Holdings demonstrates strong financial performance with significant revenue growth and robust profitability. The earnings call highlights positive growth prospects and expansion plans, though some challenges persist. Technical analysis suggests mixed signals, with short-term caution advised. Valuation appears reasonable, enhancing investor appeal. Overall, the stock is positioned favorably within its industry, though potential risks warrant attention.

Positive Factors

Business Expansion

Management expects a 25% year-over-year increase in total revenue for FY25 driven by hotel network expansion and strong retail sales.

Earnings

Atour Lifestyle Holdings Limited reported a 45% year-over-year increase in adjusted net income, surpassing estimates due to higher than expected retail revenue.

Market Positioning

Atour is one of the fastest-growing chain hotel operators in China, with its hotel count more than tripled, or +30% CAGR from 420 at end-FY19 before the pandemic to 1.5k as of end-3Q24, covering close to 200 cities nationwide.

Negative Factors

Adverse Weather Impact

Management attributes weaker than expected 3Q RevPAR to two typhoons, multiple new hotel openings, and an unfavorable calendar shift.

Revenue Volatility

Management finds it challenging to provide guidance for FY25 RevPAR due to uncertainties and expects first quarter RevPAR to decline.

RevPAR Decline

Forecasting a MSD to HSD drop in RevPAR in overall 1Q25, mostly driven by the drop in room rates.

Atour Lifestyle Holdings Business Overview & Revenue Model

Company Description

Atour Lifestyle Holdings Limited, through its subsidiaries, operates a chain of hotels in China. The company operates a series of themed hotels, including music hotels, basketball hotels, and literary hotels catering to the various lifestyles across different age groups with varied interests. As of March 31, 2021, its hotel network covered 608 hotels spanning 131 cities in China, with a total of 71,121 hotel rooms, including 575 manachised hotels with a total of 66,267 manachised hotel rooms, as well as a pipeline of 299 hotels with a total of 32,825 rooms under development. The company also provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.

How the Company Makes Money

Atour Lifestyle Holdings generates revenue predominantly through its hotel operations, which include room bookings, food and beverage services, and other related hospitality offerings. A significant portion of the company's income comes from its ability to attract a steady stream of guests to its well-situated properties across China. Additionally, Atour leverages its brand strength and customer loyalty programs to enhance occupancy rates and average daily rates. The company's emphasis on design and service innovation helps differentiate its properties, allowing it to command premium pricing. Beyond traditional hospitality services, Atour may also engage in strategic partnerships and collaborations within the travel and tourism sector to further amplify its revenue streams.

Atour Lifestyle Holdings Financial Statement Overview

Summary

Atour Lifestyle Holdings shows strong financial health with robust profitability, efficient operations, and a stable balance sheet. While historical financial challenges are evident, current metrics reflect significant improvement and stability. The company's cash flow position is particularly strong, providing a solid foundation for continued growth and financial resilience.

Income Statement

The company has shown strong revenue growth with a significant increase from 2023 to TTM (Trailing-Twelve-Months). Gross profit and net profit margins are healthy, indicating effective cost management and profitability. The EBIT and EBITDA margins are robust, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity base and a manageable level of debt, as seen in a favorable debt-to-equity ratio. The equity ratio suggests a solid asset base supported by equity, enhancing financial stability. However, historical negative equity in earlier years indicates past financial challenges.

Cash Flow

Cash flow analysis reveals healthy operating cash flow and strong free cash flow generation, indicating effective cash management. The operating cash flow to net income ratio is stable, highlighting efficient conversion of earnings into cash. The free cash flow growth rate remains positive, supporting future investments and debt servicing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
6.67B	4.67B	2.26B	2.15B	1.57B	1.57B
	Gross Profit
3.16B	1.91B	682.99M	564.67M	337.70M	388.31M
	EBIT
1.42B	924.03M	164.96M	196.06M	63.27M	91.40M
	EBITDA
1.51B	1.01B	275.62M	305.74M	150.81M	160.55M
	Net Income Common Stockholders
1.17B	737.14M	98.10M	145.05M	42.05M	64.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	3.59B	1.75B	1.04B	824.55M	775.63M
	Total Assets
2.25B	6.59B	4.76B	2.25B	1.99B	1.65B
	Total Debt
109.44M	1.95B	2.30B	109.44M	121.43M	72.64M
	Net Debt
-929.14M	-889.91M	709.80M	-929.14M	-703.11M	-690.59M
	Total Liabilities
1.68B	4.53B	3.57B	1.68B	2.30B	1.95B
	Stockholders Equity
579.43M	2.07B	1.20B	579.43M	-306.17M	-295.34M
Cash Flow		Free Cash Flow
1.65B	1.95B	244.45M	351.91M	4.70M	86.22M
	Operating Cash Flow
1.72B	1.99B	283.68M	417.88M	118.67M	224.11M
	Investing Cash Flow
-797.81M	-600.52M	-192.22M	-42.23M	-105.53M	264.86M
	Financing Cash Flow
-348.64M	-146.92M	456.31M	-161.08M	48.01M	-10.08M

Atour Lifestyle Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATAT, the sentiment is Positive. The current price of 30.18 is above the 20-day moving average (MA) of 27.14, above the 50-day MA of 27.17, and above the 200-day MA of 25.64, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 88.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATAT.

Atour Lifestyle Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAT	79 Outperform	$4.26B	24.19	50.89%	1.39%	53.63%	70.07%
HTHT	72 Outperform	$11.11B	26.17	28.90%	4.28%	5.20%	-11.08%
CHH	71 Outperform	$6.09B	19.96	-661.94%	0.88%	2.75%	40.83%
WH	67 Neutral	$6.71B	20.73	53.31%	1.78%	4.79%	48.48%
GHG	64 Neutral	$206.09M	13.49	7.89%	4.19%	―	―
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%
SHCO	49 Neutral	$1.25B	―	49.70%	―	7.27%	20.45%