Atour Lifestyle Holdings (ATAT) AI Stock Analysis

• Market Cap: $5.48B
• Dividend Yield: 3.27%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.38
• Revenue Growth: 37.98%
• EPS Growth: 32.17%
• Country: US
• Employees: 5,488
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 0.43
• Shares Outstanding: 113,625,650
• 10 Day Avg. Volume: 1,015,872
• 30 Day Avg. Volume: 1,275,026
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.11
• Enterprise Value/Ebitda: 2.06
• 1Y Price Target: $41.65
• Price Target Upside: 5.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $44.00 ▲(11.53% Upside)

Atour Lifestyle Holdings' strong financial performance and positive earnings call sentiment are key strengths, supporting a solid overall score. Technical indicators suggest a strong trend but caution due to overbought conditions. Valuation is moderate, reflecting a balanced risk-reward profile.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Hotel Network Expansion

Expanding hotel network enhances market presence and potential revenue streams, reinforcing competitive positioning.

Retail Business Growth

Strong growth in retail business diversifies revenue and strengthens brand, contributing to overall business resilience.

Negative Factors

Challenges in Hotel RevPAR Recovery

Slow RevPAR recovery may indicate challenges in maximizing revenue per room, affecting profitability in the competitive market.

Increased Competition

Rising competition could pressure pricing and occupancy rates, potentially impacting future revenue growth and market share.

High Effective Tax Rate

Higher tax rates can reduce net profit margins, affecting overall profitability and financial flexibility in the long term.

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 primarily through the operation and management of its hotels. The company earns money from room bookings, offering a range of accommodations from standard to premium suites. Additionally, Atour generates income through ancillary services such as food and beverage offerings, conference and event hosting, and retail sales within its hotel premises. The company also benefits from its brand value and customer loyalty programs which help drive repeat business. Strategic partnerships with online travel agencies and corporate clients further bolster its occupancy rates and revenue streams.

Atour Lifestyle Holdings Financial Statement Overview

Summary

Atour Lifestyle Holdings shows strong financial health with robust revenue growth, profitability, and efficient cash flow management. The income statement reflects a positive growth trajectory, while the balance sheet indicates a stable capital structure with manageable leverage. Cash flow metrics support operational and financial flexibility.

Income Statement

Atour Lifestyle Holdings demonstrates strong revenue growth with an 8.74% increase in the TTM period, supported by a solid gross profit margin of 42.79%. The company maintains a healthy net profit margin of 16.41%, indicating effective cost management. EBIT and EBITDA margins are robust at 22.81% and 22.99%, respectively, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.53, indicating manageable leverage. Return on equity is impressive at 43.78%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 39.45%, suggesting a stable capital structure. While the company has improved its leverage position over time, maintaining this trend will be crucial for financial stability.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 11.89% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.63, and the free cash flow to net income ratio is 0.96, both reflecting efficient cash conversion. The company has demonstrated consistent improvement in cash flow metrics, supporting its operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.36B	7.25B	4.67B	2.26B	2.15B	1.57B
Gross Profit	3.66B	3.06B	1.91B	682.99M	564.67M	337.70M
EBITDA	1.97B	1.79B	1.07B	275.62M	305.74M	150.81M
Net Income	1.38B	1.28B	737.14M	98.10M	145.05M	42.05M
Balance Sheet
Total Assets	8.36B	7.88B	6.59B	4.76B	2.25B	1.99B
Cash, Cash Equivalents and Short-Term Investments	5.20B	4.88B	3.59B	1.75B	1.04B	824.55M
Total Debt	1.70B	1.73B	1.95B	2.30B	109.44M	121.43M
Total Liabilities	5.07B	4.93B	4.53B	3.57B	1.68B	2.30B
Stockholders Equity	3.30B	2.96B	2.07B	1.20B	579.43M	-306.17M
Cash Flow
Free Cash Flow	1.70B	1.67B	1.95B	244.45M	351.91M	4.70M
Operating Cash Flow	1.77B	1.73B	1.99B	283.68M	417.88M	118.67M
Investing Cash Flow	-1.50B	-520.55M	-600.52M	-192.22M	-42.23M	-105.53M
Financing Cash Flow	-846.45M	-426.60M	-146.92M	456.31M	-161.08M	48.01M

Atour Lifestyle Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 39.45 is above the 20-day moving average (MA) of 39.26, above the 50-day MA of 36.76, and above the 200-day MA of 30.58, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 56.48 is Neutral, neither overbought nor oversold. The STOCH value of 44.43 is Neutral, 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	77 Outperform	$5.48B	28.91	46.30%	3.27%	37.98%	32.17%
HTHT	77 Outperform	11.70B	23.82	30.94%	4.45%	4.43%	1.61%
WH	72 Outperform	6.29B	19.36	58.77%	1.95%	3.65%	38.50%
GHG	68 Neutral	220.31M	13.98	7.54%	4.04%	―	―
CHH	59 Neutral	5.13B	16.64	-1173.06%	1.04%	1.67%	35.34%
SHCO	54 Neutral	1.73B	-29.19	16.88%	―	7.89%	67.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%