NasdaqCM:CAAS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


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 is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 53% a week.

Volatility Over Time: CAAS's weekly volatility has increased from 27% to 53% over the past year.


Market Performance


7 Day Return

-3.7%

CAAS

0.1%

US Auto Components

2.6%

US Market


1 Year Return

134.3%

CAAS

37.9%

US Auto Components

26.0%

US Market

Return vs Industry: CAAS exceeded the US Auto Components industry which returned 37.9% over the past year.

Return vs Market: CAAS exceeded the US Market which returned 26% over the past year.


Shareholder returns

CAASIndustryMarket
7 Day-3.7%0.1%2.6%
30 Day-1.5%-10.4%5.1%
90 Day121.1%34.0%17.1%
1 Year134.3%134.3%39.0%37.9%28.9%26.0%
3 Year43.8%43.8%6.1%-1.1%46.3%36.6%
5 Year72.2%72.2%85.8%59.1%126.9%101.6%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAAS ($6.7) is trading below our estimate of fair value ($122.96)

Significantly Below Fair Value: CAAS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CAAS is unprofitable, so we can't compare its PE Ratio to the US Auto Components industry average.

PE vs Market: CAAS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CAAS is good value based on its PB Ratio (0.7x) compared to the US Auto Components industry average (2.1x).


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?

237.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAAS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CAAS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CAAS's is expected to become profitable in the next 3 years.

Revenue vs Market: CAAS's revenue (18.1% per year) is forecast to grow faster than the US market (10.6% per year).

High Growth Revenue: CAAS's revenue (18.1% per year) is forecast to grow slower than 20% 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?

-38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAAS is currently unprofitable.

Growing Profit Margin: CAAS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CAAS is unprofitable, and losses have increased over the past 5 years at a rate of 38.3% per year.

Accelerating Growth: Unable to compare CAAS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CAAS is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-10.3%).


Return on Equity

High ROE: CAAS has a negative Return on Equity (-0.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is China Automotive Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CAAS's short term assets ($440.4M) exceed its short term liabilities ($320.8M).

Long Term Liabilities: CAAS's short term assets ($440.4M) exceed its long term liabilities ($34.0M).


Debt to Equity History and Analysis

Debt Level: CAAS's debt to equity ratio (14.3%) is considered satisfactory.

Reducing Debt: CAAS's debt to equity ratio has reduced from 14.7% to 14.3% over the past 5 years.

Debt Coverage: CAAS's debt is well covered by operating cash flow (177.1%).

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


Balance Sheet


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 recent payouts.

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

13.3yrs

Average management tenure


CEO

Qizhou Wu (56 yo)

13.33yrs

Tenure

US$208,000

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 ($USD208.00K) is below average for companies of similar size in the US market ($USD996.42K).

Compensation vs Earnings: Qizhou's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Hanlin Chen
Chairman & Executive Officer17.83yrsUS$312.00k43.18%
$ 89.3m
Qizhou Wu
President13.33yrsUS$208.00k4.3%
$ 8.9m
Jie Li
Chief Financial Officer13.33yrsUS$125.00k0.30%
$ 609.9k
Kevin Theiss
Manager of Investor Relationsno datano datano data
Yiu Wong Tse
Senior Vice President17.83yrsUS$60.00k1.3%
$ 2.7m
Richard Gills
President of California Division2.17yrsno datano data
Na Wei
Secretaryno datano datano data

13.3yrs

Average Tenure

53yo

Average Age

Experienced Management: CAAS's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hanlin Chen
Chairman & Executive Officer17.83yrsUS$312.00k43.18%
$ 89.3m
Qizhou Wu
President13.33yrsUS$208.00k4.3%
$ 8.9m
Tong Teo
Independent Director1.5yrsUS$15.00kno data
Guangxun Xu
Independent Director11.08yrsUS$59.00kno data
Heng Henry Lu
Independent Director1.5yrsUS$15.00kno data

11.1yrs

Average Tenure

62yo

Average Age

Experienced Board: CAAS's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CAAS 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

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: NaN
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$206.707m
  • Shares outstanding: 30.85m
  • 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 Analysis2021/01/26 00:04
End of Day Share Price2021/01/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.