NasdaqCM:CAAS

Stock Analysis Report

Executive Summary

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People’s Republic of China.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.

Risks

  • China Automotive Systems has significant price volatility in the past 3 months.
  • China Automotive Systems is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has China Automotive Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.2%

NasdaqCM:CAAS

-3.4%

US Auto Components

-1.6%

US Market


1 Year Return

-55.8%

NasdaqCM:CAAS

-31.3%

US Auto Components

-3.0%

US Market

CAAS underperformed the Auto Components industry which returned -31.3% over the past year.

CAAS underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

CAASIndustryMarket
7 Day-2.2%-3.4%-1.6%
30 Day-19.4%-14.1%-5.7%
90 Day-27.2%-1.5%0.2%
1 Year-55.8%-55.8%-30.2%-31.3%-0.8%-3.0%
3 Year-54.1%-54.1%-2.6%-13.4%38.1%29.1%
5 Year-80.6%-80.6%-6.0%-18.8%50.8%34.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Automotive Systems undervalued based on future cash flows and its price relative to the stock market?

47.29x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for China Automotive Systems to establish if it is available at moderate discount.

Unable to calculate intrinsic value for China Automotive Systems to establish if it is available at substantial discount.


Price Based on Earnings

China Automotive Systems is overvalued based on earnings compared to the US Auto Components industry average.

China Automotive Systems is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

China Automotive Systems is good value based on expected growth next year.


Price Based on Value of Assets

China Automotive Systems is good value based on assets compared to the US Auto Components industry average.


Next Steps

Future Growth

How is China Automotive Systems expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

97.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Automotive Systems's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

China Automotive Systems's earnings are expected to grow significantly at over 20% yearly.

China Automotive Systems's revenue growth is positive but not above the United States of America market average.

China Automotive Systems's earnings growth is expected to exceed the United States of America market average.

China Automotive Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if China Automotive Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has China Automotive Systems performed over the past 5 years?

-47.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

China Automotive Systems's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

China Automotive Systems has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

China Automotive Systems has become profitable in the last year making it difficult to compare the US Auto Components industry average.


Return on Equity

It is difficult to establish if China Automotive Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

China Automotive Systems used its assets less efficiently than the US Auto Components industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if China Automotive Systems improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is China Automotive Systems's financial position?


Financial Position Analysis

China Automotive Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Automotive Systems's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Automotive Systems's level of debt (23.1%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (15.4% vs 23.1% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on China Automotive Systems's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.5x debt.


Next Steps

Dividend

What is China Automotive Systems's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate China Automotive Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Automotive Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Automotive Systems has not reported any payouts.

Unable to verify if China Automotive Systems's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Automotive Systems has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of China Automotive Systems's salary, the management and board of directors tenure and is there insider trading?

11.9yrs

Average management tenure


CEO

Qizhou Wu (55yo)

11.9yrs

Tenure

US$164,000

Compensation

Mr. Qizhou Wu Co-founded China Automotive Systems Inc. and has been its Chief Executive Officer since September 25, 2007 and serves as its President. Mr. Wu serves as the Chief Technology Officer of China  ...


CEO Compensation Analysis

Qizhou's remuneration is lower than average for companies of similar size in United States of America.

Qizhou's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.9yrs

Average Tenure

52yo

Average Age

The average tenure for the China Automotive Systems management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.7yrs

Average Tenure

61.5yo

Average Age

The tenure for the China Automotive Systems board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$20,35726 Nov 18
Jie Li
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$2.04
BuyUS$20,94520 Nov 18
Jie Li
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$2.11
BuyUS$45,45716 Nov 18
Jie Li
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares21,594
Max PriceUS$2.12

Ownership Breakdown


Management Team

  • Hanlin Chen (62yo)

    Chairman

    • Tenure: 16.4yrs
    • Compensation: US$246.00k
  • Qizhou Wu (55yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$164.00k
  • Andy Tse (48yo)

    Senior Vice President

    • Tenure: 16.4yrs
    • Compensation: US$60.00k
  • Jie Li (49yo)

    Chief Financial Officer

    • Tenure: 11.9yrs
    • Compensation: US$98.00k
  • Na Wei

    Secretary

    • Tenure: 0.0yrs
  • Richard Gillis

    President of California Division

    • Tenure: 0.8yrs
  • Kevin Theiss

    Manager of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Hanlin Chen (62yo)

    Chairman

    • Tenure: 16.4yrs
    • Compensation: US$246.00k
  • Qizhou Wu (55yo)

    President

    • Tenure: 11.9yrs
    • Compensation: US$164.00k
  • Tong Teo (61yo)

    Independent Director

    • Tenure: 0.1yrs
  • Guangxun Xu (68yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$67.00k
  • Heng Henry Lu

    Independent Director

    • Tenure: 0.1yrs

Company Information

China Automotive Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Automotive Systems, Inc.
  • Ticker: CAAS
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$56.381m
  • Shares outstanding: 31.50m
  • Website: https://www.caasauto.com

Number of Employees


Location

  • China Automotive Systems, Inc.
  • No. 1 Henglong Road
  • Yu Qiao Development Zone
  • Jingzhou City
  • Hubei Province
  • 434000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAASNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2002
RYVDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2002

Biography

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People’s Republic of China. The company produces rack and pinion power steering gea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:58
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
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.