ATHMAutohome Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.3×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Margin-driven, fat margins on slower asset turns. ROE 6% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ATHM?
Autohome Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 7.0 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Internet Content & Information median 4.9% · fiscal year to FY2025
- Cash conversion
- 1.27×
Cash conversion · 1.42× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 36% |
| FY2021 | 25% |
| FY2022 | 18% |
| FY2023 | 16% |
| FY2024 | 14% |
| FY2025 | 12% |
Details›
- Gross marginfiscal year to FY2025
- 72%
- Operating marginfiscal year to FY2025
- 12%
- Net marginfiscal year to FY2025
- 22%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 16%
- Revenue, trailing twelve months
- $6.45B
- Free cash flow, trailing twelve months
- $771M
- Net income, trailing twelve months
- $1.44B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
Ranks #5 of 31 by RyuScore