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AutoHome (ATHM)
NYSE:ATHM
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AutoHome
(NYSE:ATHM)
Rating:65Neutral
Price Target:
$27.00
▲(3.97%Upside)
Positive Factors
Financial Performance
Autohome's non-GAAP net profit attributable to ordinary shareholders was 2% higher than expected, suggesting strong financial performance.
New Retail Initiatives
The company is making notable progress in scaling its new retail initiatives, which could help offset legacy business headwinds.
Shareholder Returns
Autohome reiterated its existing shareholder return plan, which translates to a greater than 10% total shareholder return yield.
Negative Factors
Auto Industry Headwinds
The online auto vertical is expected to continue suffering from the auto industry’s headwinds, including a structural decline in the ICEV auto segment.
Core Business Risks
There is risk from core business despite a rich cash position.
Media Services Challenges
Analyst has revised the 1Q media services revenue forecast to reflect a YoY decline of 25%.
AutoHome (ATHM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.20B
Dividend Yield8.87%
Average Volume (3M)416.56K
Price to Earnings (P/E)14.3
Beta (1Y)0.59
Revenue Growth-5.77%
EPS Growth-15.07%
CountryUS
Employees4,345
SectorCommunication Services
Sector Strength90
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.40
Shares Outstanding127,346,900
10 Day Avg. Volume419,251
30 Day Avg. Volume416,555
Financial Highlights & Ratios
PEG Ratio-3.43
Price to Book (P/B)44.84
Price to Sales (P/S)0.00
P/FCF Ratio43.04
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 Upside25.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 1.33%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in NEV revenue and successful expansion of the retail network, along with advancements in AI technology and user engagement. However, these positives were tempered by declines in gross margin, operating profit, and adjusted net income. The financial performance challenges suggest pressure on profitability despite operational achievements.Q1-2025 Updates
Positive Updates
Strong NEV Revenue Growth
Total revenues from NEVs, including those from the new retail business, increased by 72.6% year-over-year.
Expansion of Retail Network
Autohome established 29 space stores and 170 franchised satellite stores nationwide, aiming to exceed 500 total locations by the end of the year.
AI Technology Integration
AI technology implemented across advertising, lease membership products, APP smart assistant, used car smart tools, and new media, enhancing user decision-making.
Increase in Daily Active Users
Average mobile DAUs reached 76.92 million in March 2025, up 10.8% from the same period last year.
Negative Updates
Decline in Gross Margin
Gross margin in the first quarter was 78.3%, compared to 81.3% during the first quarter last year.
Decrease in Operating Profit
Operating profit was RMB 233 million in the first quarter, compared to RMB 276 million for the same period of last year.
Reduction in Adjusted Net Income
Adjusted net income attributable to Autohome was RMB 421 million in the first quarter compared to RMB 494 million in the corresponding period of 2024.
Company Guidance
During Autohome's First Quarter 2025 Earnings Conference Call, management provided detailed guidance on their strategic focus and financial performance. The company reported net revenues of RMB 1.45 billion, with media services contributing RMB 242 million, lead generation services RMB 645 million, and online marketplace and others RMB 566 million. Autohome's gross margin was 78.3%, compared to 81.3% in the previous year, while operating profit stood at RMB 233 million. The adjusted net income attributable to Autohome was RMB 421 million, alongside a robust balance sheet featuring RMB 21.93 billion in cash, cash equivalents, and short-term investments. The company emphasized its commitment to expanding its new retail business, with nearly 200 Autohome space and satellite franchise stores in operation and plans to reach over 500 by year-end. This expansion aims to support local partners and drive growth by integrating smart technologies and enhancing user experience. Autohome also highlighted its ongoing AI integration across various platforms, enhancing user decision-making and marketing efficiency.AutoHome Financial Statement Overview
Summary
AutoHome shows financial stability with strong equity and minimal debt, but faces challenges with declining revenue and absent cash flow data in 2024. The company benefits from strong gross and EBITDA margins, yet net profitability has weakened, indicating a need for enhanced revenue growth and cash flow management.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.75
Positive
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
Very Positive
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.60
Neutral
| 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 | 5.87B | 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 | 1.94B | 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 | 28.40B | 23.73B | Total Debt |
| 96.71M | 196.14M | 110.39M | 124.78M | 202.71M | Net Debt |
| -1.60B | -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 | |||
| 1.23B | 2.37B | 2.45B | 3.30B | 3.06B | Operating Cash Flow |
| 1.37B | 2.45B | 2.57B | 3.52B | 3.33B | Investing Cash Flow |
| -3.05B | 1.00B | -3.11B | -3.81B | -2.99B | Financing Cash Flow |
| -1.70B | -1.12B | -1.14B | 2.90B | -546.97M |
AutoHome Technical Analysis
Neutral
25.97
Price Trends
25.98
Negative
27.43
Negative
27.27
Negative
Market Momentum
-0.12
Negative
54.75
Neutral
77.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATHM, the sentiment is Neutral. The current price of 25.97 is above the 20-day moving average (MA) of 25.19, below the 50-day MA of 25.98, and below the 200-day MA of 27.27, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 77.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.70B | 25.74 | 9.18% | 4.11% | 26.71% | -23.67% | |
71 Outperform | $2.37B | 17.56 | 19.74% | ― | 5.93% | 29.17% | |
70 Outperform | $3.25B | 91.61 | 7.98% | ― | 0.63% | 15.34% | |
65 Neutral | $3.20B | 14.31 | 6.55% | 8.87% | -5.77% | -15.07% | |
61 Neutral | $14.79B | 5.90 | -3.99% | 6.20% | 2.67% | -30.30% | |
59 Neutral | $301.92M | ― | -11.66% | ― | 0.77% | 87.59% | |
50 Neutral | $136.78M | ― | -26.46% | ― | 10.18% | 1.47% |
* Communication Services Sector Average
Performance Comparison
ATHM
AutoHome
25.97
-0.53
-2.00%
YELP
Yelp
36.51
-0.18
-0.49%
TRUE
TrueCar
1.61
-1.30
-44.67%
TRVG
trivago
4.22
2.01
90.95%
CARG
CarGurus
32.65
6.77
26.16%
OPRA
Opera
19.10
5.27
38.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.