Li Auto Inc. (NASDAQ:LI) is a prominent player in the Chinese automotive industry, specializing in plug-in hybrid vehicles. The company is striving to carve out a niche in the competitive full-electric vehicle market. Despite its efforts, Li Auto faces challenges in maintaining sales and profit margins, which are crucial for its growth and sustainability.
On March 12, 2026, Li Auto reported earnings per share of $0.035, surpassing the estimated $0.032. The company also reported revenue of approximately $4.11 billion, exceeding the estimated $3.58 billion. However, the recent fourth-quarter earnings report was mixed, leading to a decline in its stock during premarket trading, as highlighted by Barrons.
Li Auto's quarterly total revenues were approximately $4.11 billion, with vehicle deliveries reaching 109,194 units. For the full year, the company achieved total revenues of $16.1 billion and delivered 406,343 vehicles. Despite these figures, fourth-quarter deliveries saw a 31.2% decrease compared to the previous year, indicating challenges in maintaining sales momentum.
The company's financial metrics reveal a price-to-earnings (P/E) ratio of approximately 28.13, showing the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 1.01, suggesting investors pay just over one dollar for every dollar of sales. The enterprise value to sales ratio is approximately 0.74, reflecting the company's valuation relative to its revenue.
Li Auto's enterprise value to operating cash flow ratio is negative at -27.11, indicating challenges in generating cash flow from operations. The earnings yield is 3.55%, providing insight into the return on investment for shareholders. With a debt-to-equity ratio of 0.25, Li Auto maintains a relatively low level of debt compared to its equity, and a current ratio of 1.80 suggests a strong ability to cover short-term liabilities with short-term assets.
