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 Analysis

Fair value with mediocre balance sheet.


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

Stable Share Price: CAAS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

CAAS

-14.5%

US Auto Components

-4.1%

US Market


1 Year Return

-48.2%

CAAS

-48.5%

US Auto Components

-14.9%

US Market

Return vs Industry: CAAS matched the US Auto Components industry which returned -48.5% over the past year.

Return vs Market: CAAS underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

CAASIndustryMarket
7 Day-6.0%-14.5%-4.1%
30 Day-24.7%-36.2%-19.1%
90 Day-48.4%-47.6%-23.4%
1 Year-48.2%-48.2%-47.7%-48.5%-13.2%-14.9%
3 Year-67.2%-67.2%-46.2%-51.6%10.7%3.5%
5 Year-77.7%-77.7%-43.7%-51.9%28.5%14.5%

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 compared to its fair value and its price relative to the market?

10.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CAAS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CAAS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CAAS is good value based on its PE Ratio (10.1x) compared to the Auto Components industry average (11x).

PE vs Market: CAAS is good value based on its PE Ratio (10.1x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: CAAS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CAAS is good value based on its PB Ratio (0.2x) compared to the US Auto Components industry average (0.7x).


Next Steps

Future Growth

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

-47.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAAS's earnings are forecast to decline over the next 3 years (-47.8% per year).

Earnings vs Market: CAAS's earnings are forecast to decline over the next 3 years (-47.8% per year).

High Growth Earnings: CAAS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CAAS's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: CAAS's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CAAS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-46.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAAS has a large one-off gain of $445.0K impacting its September 30 2019 financial results.

Growing Profit Margin: CAAS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CAAS's earnings have declined by -46.8% per year over the past 5 years.

Accelerating Growth: CAAS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CAAS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (-4.2%).


Return on Equity

High ROE: CAAS's Return on Equity (0.7%) is considered low.


Next Steps

Financial Health

How is China Automotive Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CAAS's short term assets ($447.0M) exceed its short term liabilities ($297.6M).

Long Term Liabilities: CAAS's short term assets ($447.0M) exceed its long term liabilities ($47.8M).


Debt to Equity History and Analysis

Debt Level: CAAS's debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: CAAS's debt to equity ratio has increased from 18.2% to 23.8% over the past 5 years.

Debt Coverage: CAAS's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: Insufficient data to determine if CAAS's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: CAAS has a high level of physical assets or inventory.

Debt Coverage by Assets: CAAS's debt is covered by short term assets (assets are 6.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CAAS'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 CAAS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAAS'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 CAAS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

12.6yrs

Average management tenure


CEO

Qizhou Wu (55yo)

12.58s

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

Compensation vs Market: Qizhou's total compensation ($USD164.00K) is below average for companies of similar size in the US market ($USD609.32K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hanlin Chen
Chairman17.08yrsUS$246.00k42.42% $21.5m
Qizhou Wu
President12.58yrsUS$164.00k4.22% $2.1m
Jie Li
Chief Financial Officer12.58yrsUS$98.00k0.29% $147.1k
Kevin Theiss
Manager of Investor Relationsno datano datano data
Yiu Wong Tse
Senior Vice President17.08yrsUS$60.00k1.27% $646.8k
Richard Gills
President of California Division1.42yrsno datano data
Na Wei
Secretaryno datano datano data

12.6yrs

Average Tenure

52yo

Average Age

Experienced Management: CAAS's management team is seasoned and experienced (12.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hanlin Chen
Chairman17.08yrsUS$246.00k42.42% $21.5m
Qizhou Wu
President12.58yrsUS$164.00k4.22% $2.1m
Tong Teo
Independent Director0.75yrno datano data
Guangxun Xu
Independent Director10.33yrsUS$67.00kno data
Heng Henry Lu
Independent Director0.75yrno datano data

10.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CAAS's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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$50.754m
  • Shares outstanding: 31.40m
  • 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 gears for cars and light duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronic and hydraulic power steering systems and parts. It is also involved in the marketing of automotive parts in North America and Brazil, as well as the provision of after sales, and research and development support services. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou City, 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 Analysis2020/04/03 04:41
End of Day Share Price2020/04/02 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.