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AutoHome (ATHM)
NYSE:ATHM

AutoHome (ATHM) AI Stock Analysis

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AutoHome

(NYSE:ATHM)

Rating:65Neutral
Price Target:
$27.00
▲(9.27%Upside)
AutoHome demonstrates financial stability with strong equity and minimal debt, but faces challenges with declining revenue and absent cash flow data in 2024. Technical analysis shows bearish momentum, and while the valuation is fair with an attractive dividend yield, profitability pressures and market sentiment caution investors to watch for improved revenue growth and cash management.
Positive Factors
Retail Expansion
Autohome aims to have over 500 stores by end of this year, and 1000 stores over the next three years.
Revenue Performance
Autohome's non-GAAP net profit attributable to ordinary shareholders was 2% higher than expected, suggesting strong financial performance.
Shareholder Returns
Autohome reiterated its existing shareholder return plan, which translates to a greater than 10% total shareholder return yield.
Negative Factors
Advertising Budgets
Increased promotional activity has weighed on OEMs' profitability, leading to reduced advertising budgets, especially for media brand spending.
Media Services
Analyst has revised the 1Q media services revenue forecast to reflect a YoY decline of 25%.
Revenue Decline
Topline decline of 10% YoY deteriorated from 7% YoY in 4Q24.

AutoHome (ATHM) vs. SPDR S&P 500 ETF (SPY)

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: -3.59%|
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
75
Positive
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
82
Very Positive
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.
Cash Flow
60
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
7.04B7.18B6.94B7.24B8.66B
Gross Profit
5.56B5.77B5.71B6.19B7.70B
EBIT
1.00B1.14B46.95M1.35B3.15B
EBITDA
1.25B1.38B1.55B2.09B3.15B
Net Income Common Stockholders
1.79B2.03B1.94B2.56B3.28B
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.32B23.55B3.20B20.73B14.63B
Total Assets
30.22B30.84B29.72B28.53B23.73B
Total Debt
96.71M196.14M110.39M124.78M202.71M
Net Debt
-1.60B-4.80B-295.77M-4.11B-1.55B
Total Liabilities
5.02B5.66B588.47M4.59B4.92B
Stockholders Equity
23.95B23.93B2.35B22.75B17.63B
Cash FlowFree Cash Flow
1.23B2.37B2.45B3.30B3.06B
Operating Cash Flow
1.37B2.45B2.57B3.52B3.33B
Investing Cash Flow
-3.05B1.00B-3.11B-3.81B-2.99B
Financing Cash Flow
-1.70B-1.12B-1.14B2.90B-546.97M

AutoHome Technical Analysis

Technical Analysis Sentiment
Negative
Last Price24.71
Price Trends
50DMA
26.34
Negative
100DMA
27.47
Negative
200DMA
27.16
Negative
Market Momentum
MACD
-0.57
Positive
RSI
37.46
Neutral
STOCH
36.56
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 24.71 is below the 20-day moving average (MA) of 25.35, below the 50-day MA of 26.34, and below the 200-day MA of 27.16, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 37.46 is Neutral, neither overbought nor oversold. The STOCH value of 36.56 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.64B24.899.18%4.25%26.71%-23.67%
77
Outperform
$2.44B18.3619.74%5.93%29.17%
68
Neutral
$3.10B87.937.98%0.63%15.34%
65
Neutral
$3.06B13.536.55%6.85%-5.77%-15.07%
64
Neutral
$283.62M-11.66%0.77%87.59%
61
Neutral
$14.28B5.89-4.20%3.70%2.73%-35.75%
49
Neutral
$127.13M-26.46%10.18%1.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATHM
AutoHome
24.71
-2.12
-7.90%
YELP
Yelp
37.15
0.38
1.03%
TRUE
TrueCar
1.51
-1.39
-47.93%
TRVG
trivago
4.25
1.97
86.40%
CARG
CarGurus
31.24
7.37
30.88%
OPRA
Opera
18.12
5.03
38.43%
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.