SEHK:699

Stock Analysis Report

Executive Summary

CAR Inc., an investment holding company, provides car and fleet rental services to individual and corporate customers in Mainland China.


Snowflake Analysis

Poor track record with worrying balance sheet.


Similar Companies

Share Price & News

How has CAR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 699 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

699

-3.3%

HK Transportation

-2.1%

HK Market


1 Year Return

-28.7%

699

-8.2%

HK Transportation

-9.8%

HK Market

Return vs Industry: 699 underperformed the Hong Kong Transportation industry which returned -7.3% over the past year.

Return vs Market: 699 underperformed the Hong Kong Market which returned -10.2% over the past year.


Shareholder returns

699IndustryMarket
7 Day-4.1%-3.3%-2.1%
30 Day-7.4%-5.8%-3.2%
90 Day-15.0%-4.5%0.09%
1 Year-28.7%-28.7%-5.9%-8.2%-6.5%-9.8%
3 Year-33.9%-33.9%4.9%-5.7%11.6%0.3%
5 Year-56.0%-56.0%29.5%6.3%11.7%-6.8%

Price Volatility Vs. Market

How volatile is CAR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CAR undervalued compared to its fair value and its price relative to the market?

35.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 699 (HK$4.89) is trading above our estimate of fair value (HK$1.4)

Significantly Below Fair Value: 699 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 699 is poor value based on its PE Ratio (35.4x) compared to the Transportation industry average (18.6x).

PE vs Market: 699 is poor value based on its PE Ratio (35.4x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 699's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 699 is overvalued based on its PB Ratio (1.2x) compared to the HK Transportation industry average (0.8x).


Next Steps

Future Growth

How is CAR forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 699's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 699's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 699's revenue (2.4% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 699's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 699's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has CAR performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 699 has high quality earnings.

Growing Profit Margin: 699's current net profit margins (3.6%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: 699's earnings have declined by -11.1% per year over the past 5 years.

Accelerating Growth: 699's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 699 had negative earnings growth (-29.3%) over the past year, making it difficult to compare to the Transportation industry average (-12.2%).


Return on Equity

High ROE: 699's Return on Equity (3.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CAR's financial position?


Financial Position Analysis

Short Term Liabilities: 699's short term assets (CN¥7.6B) exceed its short term liabilities (CN¥7.5B).

Long Term Liabilities: 699's short term assets (CN¥7.6B) do not cover its long term liabilities (CN¥9.1B).


Debt to Equity History and Analysis

Debt Level: 699's debt to equity ratio (163.2%) is considered high.

Reducing Debt: 699's debt to equity ratio has increased from 69.7% to 163.2% over the past 5 years.

Debt Coverage: 699's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: 699's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: 699 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 699's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is CAR's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 699's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 699's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 699's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 699's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 699's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Yifan Song (43yo)

3.8yrs

Tenure

CN¥1,052,000

Compensation

Ms. Yifan Song has been the Chief Executive Officer and Executive Director of CAR Inc. since April 11, 2016. Ms. Song served as an Executive Vice-President of CAR Inc. since May 15, 2014 and served as its  ...


CEO Compensation Analysis

Compensation vs Market: Yifan's total compensation ($USD149.67K) is below average for companies of similar size in the Hong Kong market ($USD556.29K).

Compensation vs Earnings: Yifan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Yifan Song
CEO & Executive Director3.8yrsCN¥1.05m1.82% CN¥188.3m
Guangyu Cao
VP & Interim CFO1.4yrsno datano data
Ka Man So
Company Secretary5.6yrsno datano data

3.8yrs

Average Tenure

43yo

Average Age

Experienced Management: 699's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yifan Song
CEO & Executive Director3.8yrsCN¥1.05m1.82% CN¥188.3m
Linan Zhu
Non-Executive Director5.8yrsno datano data
Hanhui Sun
Independent Non-Executive Director5.5yrsCN¥662.00k0.024% CN¥2.5m
Zhengyao Lu
Chairman5.8yrsCN¥871.00kno data
Wei Ding
Independent Non-Executive Director5.5yrsCN¥662.00kno data
Li Zhang
Independent Non-Executive Director2yrsCN¥555.00kno data
Zhen Wei
Non-Executive Director4.1yrsno datano data
Xiaogeng Li
Non-Executive Director4.3yrsno datano data

4.9yrs

Average Tenure

48.5yo

Average Age

Experienced Board: 699's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 699 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CAR Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CAR Inc.
  • Ticker: 699
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: HK$10.365b
  • Shares outstanding: 2.12b
  • Website: https://www.zuche.com

Number of Employees


Location

  • CAR Inc.
  • UCAR PARK
  • No. 118 East Zhongguancun Road
  • Beijing
  • 100098
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
699SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2014
85CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2014
699SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2014
699SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2014

Biography

CAR Inc., an investment holding company, provides car and fleet rental services to individual and corporate customers in Mainland China. The company offers short-term rentals for local and inter-city travel needs, as well as replacement rental and other needs; long-term rentals for corporations, SMEs, and government agencies; and finance leasing services. It also provides various value-added services, including 24/7 roadside assistance, auto insurance and additional coverage, one-way rental, vehicle delivery, GPS navigation system, and child seat services. In addition, the company offers vehicle parking management, investment, chauffeured, auto repair, consulting, car rental information system, management, and information technology services; processes and manufactures auto parts; and sells used cars. As of December 31, 2018, it operated 1,098 directly-operated service locations in 118 cities, including 416 stores and 682 pick-up points. The company was formerly known as China Auto Rental Inc. and changed its name to CAR Inc. in June 2014. CAR Inc. was founded in 2007 and is headquartered in Beijing, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 13:21
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.