Atour Lifestyle Holdings (ATAT) AI Stock Analysis

• Market Cap: $4.56B
• Dividend Yield: 3.91%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 26.3
• Beta (1Y): 0.39
• Revenue Growth: 42.60%
• EPS Growth: 27.14%
• Country: US
• Employees: 5,488
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Travel Lodging
• EPS (TTM): 0.34
• Shares Outstanding: 113,625,650
• 10 Day Avg. Volume: 1,316,174
• 30 Day Avg. Volume: 1,410,552
• PEG Ratio: -19.81
• Price to Book (P/B): 9.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.33
• 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: $38.28
• Price Target Upside: 16.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $37.00 ▲(12.12%Upside)

Atour Lifestyle Holdings is well-positioned in the travel lodging industry with strong financial performance and positive growth prospects. The technical analysis suggests caution due to overbought conditions, and the valuation appears high, which could limit upside potential. Overall, the company shows a robust outlook, supported by strategic expansions and earnings growth.

Positive Factors

Retail Growth

Atour delivered another set of strong results marked by store expansion and retail growth.

Revenue Guidance

Management lifted 2025 revenue guidance due to a better retail outlook.

Negative Factors

RevPAR Challenges

Atour has recorded a decline in RevPAR during the CNY, and numbers have worsened, likely dragged by unfavorable weather and high base.

RevPAR Guidance

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

RevPAR Uncertainty

RevPAR uncertainty remains, with blended RevPAR declining due in part to unfavorable weather and weak macro conditions.

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 exhibits strong financial health with a significant revenue increase of 55.3% and high profitability margins. The balance sheet shows moderate leverage and high returns on equity. Cash flow generation is strong, although there has been a slight decline in operating cash flow. Overall, the financial outlook is positive, supporting future expansion.

Income Statement

Atour Lifestyle Holdings has demonstrated robust growth in its revenue, with a significant increase of 55.3% in 2024 compared to 2023. The company maintains strong profitability, as evidenced by its high gross profit margin of 42.2% and a net profit margin of 17.6% in 2024. Additionally, both EBIT and EBITDA margins are healthy, at 22.4% and 24.7% respectively. The company shows a consistent upward trajectory in financial performance.

Balance Sheet

The company's balance sheet reflects a solid equity base, with the equity ratio standing at 37.5% in 2024. The debt-to-equity ratio is manageable at 0.59, indicating moderate leverage. Return on equity is impressive at 43.1%, showcasing efficient utilization of equity in generating profits. Despite these positives, the company's total liabilities have increased, which could pose risks if not managed carefully.

Cash Flow

Atour Lifestyle Holdings has strong cash flow management, with a substantial free cash flow of 1.67 billion in 2024. The free cash flow to net income ratio is 1.31, indicating strong cash generation relative to net earnings. However, the operating cash flow has seen a slight decline compared to the previous year. The company should focus on maintaining or improving its cash flow generation to support ongoing investments and debt management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.69B	7.25B	4.67B	2.26B	2.15B	1.57B
Gross Profit	3.29B	3.06B	1.91B	682.99M	564.67M	337.70M
EBITDA	1.77B	1.79B	1.07B	275.62M	305.74M	150.81M
Net Income	1.26B	1.28B	737.14M	98.10M	145.05M	42.05M
Balance Sheet
Total Assets	7.92B	7.88B	6.59B	4.76B	2.25B	1.99B
Cash, Cash Equivalents and Short-Term Investments	4.88B	4.88B	3.59B	1.75B	1.04B	824.55M
Total Debt	1.76B	1.73B	1.95B	2.30B	109.44M	121.43M
Total Liabilities	4.63B	4.93B	4.53B	3.57B	1.68B	2.30B
Stockholders Equity	3.29B	2.96B	2.07B	1.20B	579.43M	-306.17M
Cash Flow
Free Cash Flow	1.52B	1.67B	1.95B	244.45M	351.91M	4.70M
Operating Cash Flow	1.58B	1.73B	1.99B	283.68M	417.88M	118.67M
Investing Cash Flow	-1.04B	-520.55M	-600.52M	-192.22M	-42.23M	-105.53M
Financing Cash Flow	-435.15M	-426.60M	-146.92M	456.31M	-161.08M	48.01M

Atour Lifestyle Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.00
• 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 33 is above the 20-day moving average (MA) of 31.73, above the 50-day MA of 29.37, and above the 200-day MA of 27.32, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 64.07 is Neutral, neither overbought nor oversold. The STOCH value of 82.46 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	78 Outperform	$4.56B	26.28	44.99%	3.91%	42.60%	27.14%
WH	69 Neutral	$6.47B	19.98	53.31%	1.95%	4.79%	48.48%
HTHT	68 Neutral	$10.05B	23.91	28.90%	4.68%	5.20%	-11.08%
GHG	67 Neutral	$247.72M	16.21	7.89%	3.48%	―	―
CHH	65 Neutral	$6.06B	19.85	-661.94%	0.88%	2.75%	40.83%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%
SHCO	59 Neutral	$1.49B	―	49.70%	―	7.27%	20.45%