NasdaqGM:SORL

Stock Analysis Report

Executive Summary

SORL Auto Parts, Inc., together with its subsidiaries, develops, manufactures, and distributes automotive brake systems and other safety related auto parts to automotive original equipment manufacturers and the related aftermarket in the People’s Republic of China.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has SORL Auto Parts's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

SORL

3.5%

US Auto Components

0.4%

US Market


1 Year Return

-21.0%

SORL

-2.3%

US Auto Components

6.9%

US Market

Return vs Industry: SORL underperformed the US Auto Components industry which returned -2.3% over the past year.

Return vs Market: SORL underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

SORLIndustryMarket
7 Day0.3%3.5%0.4%
30 Day-2.8%2.5%-1.1%
90 Day-14.5%2.8%-0.5%
1 Year-21.0%-21.0%-0.8%-2.3%9.3%6.9%
3 Year-34.9%-34.9%11.2%-0.3%45.8%36.4%
5 Year-16.3%-16.3%19.4%3.0%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SORL Auto Parts undervalued compared to its fair value and its price relative to the market?

4.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate SORL's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate SORL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SORL is good value based on its PE Ratio (4.9x) compared to the Auto Components industry average (16.5x).

PE vs Market: SORL is good value based on its PE Ratio (4.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: SORL is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: SORL is good value based on its PB Ratio (0.3x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is SORL Auto Parts forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SORL's forecast earnings growth (23.3% per year) is above the savings rate (2.7%).

Earnings vs Market: SORL's earnings (23.3% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: SORL's revenue (2.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SORL's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has SORL Auto Parts performed over the past 5 years?

9.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SORL's earnings have grown by 9.3% per year over the past 5 years.

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

Earnings vs Industry: SORL had negative earnings growth (-53.5%) over the past year, making it difficult to compare to the Auto Components industry average (8.1%).


Return on Equity

High ROE: SORL's Return on Equity (6.8%) is considered low.


Return on Assets

ROA vs Industry: SORL's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: SORL has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is SORL Auto Parts's financial position?


Financial Position Analysis

Short Term Liabilities: SORL's short term assets ($575.6M) exceeds its short term liabilities ($539.9M)

Long Term Liabilities: SORL's short term assets (575.6M) exceeds its long term liabilities (12.0M)


Debt to Equity History and Analysis

Debt Level: SORL's debt to equity ratio (112.7%) is considered high

Reducing Debt: SORL's debt to equity ratio has increased from 5.2% to 112.7% over the past 5 years.

Debt Coverage: SORL's debt is well covered by operating cash flow (20%).

Interest Coverage: SORL's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: SORL's debt is covered by short term assets (assets are 2.309270x debt).


Next Steps

Dividend

What is SORL Auto Parts's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Next Steps

Management

What is the CEO of SORL Auto Parts's salary, the management and board of directors tenure and is there insider trading?

12.3yrs

Average management tenure


CEO

Xiao Zhang (57yo)

15.4yrs

Tenure

US$60,000

Compensation

Mr. Xiao Ping Zhang has been Chairman of the Board and Chief Executive Officer at Sorl Auto Parts, Inc. since May 7, 2004. Mr. Zhang founded Ruili Group in 1987 and has been its Chairman since 1987. In 200 ...


CEO Compensation Analysis

Compensation vs. Market: Xiao's total compensation ($USD60.00K) is about average for companies of similar size in the US market ($USD489.74K).

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


Management Age and Tenure

12.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SORL's management team is seasoned and experienced (12.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SORL's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Zong Zhou (65yo)

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: US$30.00k
  • Xiao Zhang (57yo)

    Chairman & CEO

    • Tenure: 15.4yrs
    • Compensation: US$60.00k
  • Jin Yu (44yo)

    Chief Operating Officer

    • Tenure: 7.6yrs
    • Compensation: US$50.00k
  • Ben Chen

    Vice President of Finance and Corporate Secretary

    • Tenure: 12.3yrs
  • Shu Chi (58yo)

    Executive Director

    • Tenure: 5.5yrs
    • Compensation: US$10.00k
  • Kan Min

    Accounting Manager

    • Tenure: 0yrs

Board Members

  • Xiao Zhang (57yo)

    Chairman & CEO

    • Tenure: 15.4yrs
    • Compensation: US$60.00k
  • Xiao Zhang (52yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: US$30.00k
  • Jiang Feng (54yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$10.00k
  • Shu Chi (58yo)

    Executive Director

    • Tenure: 5.5yrs
    • Compensation: US$10.00k
  • Yu Li (52yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$10.00k
  • Hui Wang (77yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$10.00k
  • Jin Liu (76yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$10.00k
  • Xiao Lin

    Independent Director

    • Tenure: 0.4yrs
  • Binghua Feng

    Independent Director

    • Tenure: 0.4yrs

Company Information

SORL Auto Parts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SORL Auto Parts, Inc.
  • Ticker: SORL
  • Exchange: NasdaqGM
  • Founded: 2003
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$60.424m
  • Shares outstanding: 19.30m
  • Website: https://www.sorl.cn

Number of Employees


Location

  • SORL Auto Parts, Inc.
  • NO. 2666 KaiFaqu Avenue
  • Ruili Industry Area
  • Rui'an
  • Zhejiang Province
  • 325200
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SORLNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2004
A9SDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004

Biography

SORL Auto Parts, Inc., together with its subsidiaries, develops, manufactures, and distributes automotive brake systems and other safety related auto parts to automotive original equipment manufacturers an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:48
End of Day Share Price2019/10/18 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.