Latest news with #ATHM
Yahoo
07-05-2025
- Automotive
- Yahoo
The past five years for Autohome (NYSE:ATHM) investors has not been profitable
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. To wit, the Autohome Inc. (NYSE:ATHM) share price managed to fall 67% over five long years. That's an unpleasant experience for long term holders. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Looking back five years, both Autohome's share price and EPS declined; the latter at a rate of 13% per year. Readers should note that the share price has fallen faster than the EPS, at a rate of 20% per year, over the period. So it seems the market was too confident about the business, in the past. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). NYSE:ATHM Earnings Per Share Growth May 7th 2025 This free interactive report on Autohome's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Autohome the TSR over the last 5 years was -62%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! A Different Perspective Autohome provided a TSR of 4.6% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 10% endured over half a decade. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Autohome better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Autohome .
Yahoo
16-04-2025
- Automotive
- Yahoo
Autohome (NYSE:ATHM) Will Want To Turn Around Its Return Trends
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Although, when we looked at Autohome (NYSE:ATHM), it didn't seem to tick all of these boxes. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Autohome, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.039 = CN¥1.0b ÷ (CN¥30b - CN¥4.5b) (Based on the trailing twelve months to December 2024). Therefore, Autohome has an ROCE of 3.9%. Ultimately, that's a low return and it under-performs the Interactive Media and Services industry average of 7.4%. View our latest analysis for Autohome Above you can see how the current ROCE for Autohome compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Autohome . On the surface, the trend of ROCE at Autohome doesn't inspire confidence. Over the last five years, returns on capital have decreased to 3.9% from 21% five years ago. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. In summary, Autohome is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Since the stock has declined 60% over the last five years, investors may not be too optimistic on this trend improving either. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere. If you'd like to know about the risks facing Autohome, we've discovered 1 warning sign that you should be aware of. While Autohome isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
