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AutoHome (ATHM)
NYSE:ATHM
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AutoHome
(NYSE:ATHM)
74Outperform
Positive Factors
Financial Performance
Autohome's non-GAAP net profit attributable to ordinary shareholders was 2% higher than expected, suggesting strong financial performance.
Retail Initiatives
The company is making notable progress in scaling its new retail initiatives, which could help offset legacy business headwinds.
Shareholder Confidence
The company repurchased shares worth US$81.8 million, indicating confidence in its stock value and commitment to returning value to shareholders.
Negative Factors
Media Services Challenges
Analyst anticipates growth challenges in media services and lead generation due to pressure on ICE automakers from the rapid growth of EVs.
Profitability Concerns
Increased promotional activity has weighed on OEMs' profitability, leading to reduced advertising budgets, especially for media brand spending.
Revenue Decline
Total revenue declined by 7% year-over-year, which may indicate challenges in maintaining growth.
AutoHome (ATHM) vs. S&P 500 (SPY)
Market Cap
$3.36B
Dividend Yield6.16%
Average Volume (3M)512.46K
Price to Earnings (P/E)14.7
Beta (1Y)0.56
Revenue Growth-3.42%
EPS Growth-14.23%
CountryUS
Employees4,415
SectorCommunication Services
Sector Strength83
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.34
Shares Outstanding127,346,900
10 Day Avg. Volume379,414
30 Day Avg. Volume512,455
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.50Price Target Upside21.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
AutoHome Business Overview & Revenue Model
Company DescriptionAutohome Inc. operates as an online destination for automobile consumers in the People's Republic of China. The company delivers interactive content and tools to automobile consumers through its three websites, autohome.com.cn, che168.com, and ttpai.cn on PCs, mobile devices, mobile applications, and mini apps. 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 collects commissions for 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 incorporated in 2008 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyAutoHome generates revenue primarily through its advertising services, which include display and search advertising for automakers and dealers looking to reach a targeted audience of potential car buyers. The company charges these clients based on a cost-per-click or cost-per-thousand-impressions basis. Additionally, AutoHome offers subscription services to dealerships for enhanced listings and premium positioning on its platform. The company also has a growing data products and services segment, where it provides market insights and analytics to automotive industry stakeholders. Strategic partnerships with automotive manufacturers and other industry players further enhance AutoHome's offerings and revenue potential.
AutoHome Financial Statement Overview
Summary
AutoHome demonstrates a solid financial foundation with strong equity and minimal debt, ensuring stability. However, the declining revenue trend and absence of cash flow data in 2024 pose challenges for future financial performance. The company benefits from strong gross and EBITDA margins, though net profitability has weakened. Continued focus on revenue growth and cash flow management will be crucial to sustain its financial health.Income Statement
AutoHome's income statement reveals a mixed performance. The company has shown a decline in total revenue from 2020 to 2024, with revenue decreasing from 8.66 billion in 2020 to 7.04 billion in 2024. This indicates a negative revenue growth trend. However, the gross profit margin remains strong at 78.9% in 2024, reflecting good cost control. The net profit margin declined to 25.5% in 2024 from higher levels in previous years, suggesting challenges in profitability. Despite these challenges, the company maintains a healthy EBITDA margin of 17.7% in 2024, showcasing operational efficiency.―
Balance Sheet
AutoHome's balance sheet is robust with a high equity ratio of 79.2% in 2024, indicating financial stability and a low reliance on debt. The debt-to-equity ratio is minimal at 0.001, which suggests prudent financial management with negligible debt levels. The return on equity has decreased over the years, standing at 7.5% in 2024, reflecting lower profitability relative to equity. Nonetheless, the company has maintained substantial stockholders' equity over the years, highlighting long-term financial strength.82
Cash Flow
The cash flow statement shows that AutoHome's operating cash flow has been positive, although it dropped to zero in 2024, signaling potential issues in cash generation. Free cash flow has been strong historically, but the lack of data for 2024 limits analysis. The operating cash flow to net income ratio was strong in previous years, indicating effective cash conversion from profits, yet the absence of these metrics in 2024 raises concerns about cash flow sustainability.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.04B | 7.18B | 6.94B | 7.24B | 8.66B | Gross Profit |
| 5.56B | 5.77B | 5.71B | 6.19B | 7.70B | EBIT |
| 1.00B | 1.14B | 46.95M | 1.35B | 3.15B | EBITDA |
| 1.25B | 1.38B | 1.55B | 2.09B | 3.15B | Net Income Common Stockholders |
| 1.79B | 2.03B | 1.94B | 2.56B | 3.28B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 23.32B | 23.55B | 3.20B | 20.73B | 14.63B | Total Assets |
| 30.22B | 30.84B | 29.72B | 28.53B | 23.73B | Total Debt |
| 23.10M | 196.14M | 110.39M | 124.78M | 202.71M | Net Debt |
| -1.67B | -4.80B | -295.77M | -4.11B | -1.55B | Total Liabilities |
| 5.02B | 5.66B | 588.47M | 4.59B | 4.92B | Stockholders Equity |
| 23.95B | 23.93B | 2.35B | 22.75B | 17.63B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 2.37B | 2.45B | 3.30B | 3.06B | Operating Cash Flow |
| 0.00 | 2.45B | 2.57B | 3.52B | 3.33B | Investing Cash Flow |
| 0.00 | 1.00B | -3.11B | -3.81B | -2.99B | Financing Cash Flow |
| 0.00 | -1.12B | -1.14B | 2.90B | -546.97M |
AutoHome Technical Analysis
Negative
26.86
Price Trends
28.05
Negative
27.58
Negative
26.95
Negative
Market Momentum
-0.09
Negative
46.41
Neutral
33.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATHM, the sentiment is Negative. The current price of 26.86 is above the 20-day moving average (MA) of 26.57, below the 50-day MA of 28.05, and below the 200-day MA of 26.95, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATHM.
AutoHome Risk Analysis
AutoHome disclosed 69 risk factors in its most recent earnings report. AutoHome reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AutoHome Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.56B | 23.70 | 9.18% | 4.46% | 26.71% | -23.67% | |
76 Outperform | $2.27B | 18.32 | 17.79% | ― | 5.61% | 37.61% | |
74 Outperform | $3.36B | 14.70 | 6.76% | 6.16% | -3.42% | -14.23% | |
64 Neutral | $365.96M | ― | -11.66% | ― | 0.77% | 87.59% | |
59 Neutral | $13.78B | 7.66 | -2.74% | 3.86% | 2.20% | -37.62% | |
56 Neutral | $2.94B | 154.92 | 3.62% | ― | -2.17% | -26.53% | |
50 Neutral | $136.53M | ― | -22.31% | ― | 10.64% | 38.48% |
* Communication Services Sector Average
Performance Comparison
ATHM
AutoHome
26.86
1.54
6.08%
YELP
Yelp
35.03
-5.45
-13.46%
TRUE
TrueCar
1.48
-1.42
-48.97%
TRVG
trivago
5.02
2.54
102.42%
CARG
CarGurus
28.01
5.01
21.78%
OPRA
Opera
17.40
4.33
33.13%
AutoHome Earnings Call Summary
Earnings Call Date:Feb 20, 2025
(Q4-2024)
| % Change Since: -10.79%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook with strong revenue growth, particularly in the NEV segment and user base expansion. However, there were challenges in operating profit and gross margin, as well as a decline in media services revenues. Despite these issues, the company's strategic initiatives and shareholder returns reflect confidence in future growth.Q4-2024 Updates
Positive Updates
Significant Revenue Growth
Total revenue for 2024 reached RMB 7.04 billion, with an 8.1% year-over-year increase in revenue from online marketplace and others.
Strong NEV Business Growth
Revenues from the NEV business increased by 55.2% year-over-year in 2024, reflecting strong growth potential in this segment.
High Daily Active Users
Average mobile daily active users (DAU) exceeded 77 million in December 2024, an increase of 13.6% from the previous year.
Expansion of Offline Stores
Franchise offline stores exceeded 150, with a focus on low-tier cities. Over 1,200 cities participated in trade-in events in over 200 cities.
Technological Advancements
Integration of AI across business operations improved productivity and operational efficiency, enhancing both content creation and dealer operations.
Positive Shareholder Returns
A combination of RMB 1.5 billion in dividends was announced for the year, alongside a significant share repurchase program.
Negative Updates
Decline in Operating Profit
Operating profit for the fourth quarter decreased to RMB 232 million compared to RMB 367 million in the same period last year.
Decreased Gross Margin
Gross margin in the fourth quarter was 76% compared to 80.8% during the same period of 2023.
Challenges in Media Services Revenues
Media services revenues saw a decline, though the decrease narrowed significantly in the fourth quarter.
Company Guidance
During Autohome's fourth quarter and full year 2024 earnings call, the company provided guidance highlighting significant achievements and strategic focus areas for future growth. Total revenue for 2024 reached RMB 7.04 billion, with an 8.1% year-over-year increase in revenue from online marketplace and others, which accounted for 33.8% of the total revenue. The NEV business experienced a robust growth with a 55.2% increase in revenues year-over-year. The company's adjusted net income was RMB 2.05 billion, yielding an adjusted net margin of 29.1%. Autohome announced a RMB 1.5 billion dividend for the year and repurchased approximately USD 88.5 million worth of shares. The company achieved new milestones in user growth and expanded its offline presence, with average mobile DAU surpassing 77 million in December 2024 and more than 150 franchise offline stores established. Autohome integrated AI across its operations to enhance productivity and efficiency. Looking ahead, Autohome plans to deepen its presence in low-tier markets and continue its strategic focus on integrating its online-to-offline ecosystem to drive innovation and growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.