Lead author: Frank Wang.
Source: sina.com.cn.
Background
How Autohome (ATHM) caught our attention in the first place was its capital efficiency and cash generation. As you can see below, the business maintained its returns on tangible assets above 15% while increasing its FCF per share by over 10x since its IPO.
Source: GuruFocus; data as of 10/22/2019.
Source: GuruFocus; data as of 10/22/2019.
To gauge the investment value of Autohome, we have to figure out whether the superior ROIC and growth can both sustain by examining the competitive advantage and long-term prospect of