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.

Rewards

PE ratio (3.8x) is below the US market (18.5x)

Earnings grew by 79.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -11.4% per year for the next 3 years

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($85M)



Snowflake Analysis

Solid track record and fair value.


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

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


Market Performance


7 Day Return

-0.5%

SORL

0.8%

US Auto Components

0.3%

US Market


1 Year Return

54.9%

SORL

10.8%

US Auto Components

18.5%

US Market

Return vs Industry: SORL exceeded the US Auto Components industry which returned 10.8% over the past year.

Return vs Market: SORL exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

SORLIndustryMarket
7 Day-0.5%0.8%0.3%
30 Day26.6%-3.4%1.5%
90 Day36.2%5.0%5.7%
1 Year54.9%54.9%12.4%10.8%21.1%18.5%
3 Year13.7%13.7%2.0%-8.3%45.9%36.4%
5 Year13.4%13.4%21.8%4.5%71.4%52.5%

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?

3.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

Significantly Below Fair Value: 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 (3.8x) compared to the Auto Components industry average (17.1x).

PE vs Market: SORL is good value based on its PE Ratio (3.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SORL is good value based on its PB Ratio (0.4x) 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?

-11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SORL's earnings are forecast to decline over the next 3 years (-11.4% per year).

Earnings vs Market: SORL's earnings are forecast to decline over the next 3 years (-11.4% per year).

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

Revenue vs Market: SORL's revenue (2.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SORL's revenue (2.6% 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 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?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SORL has high quality earnings.

Growing Profit Margin: SORL's current net profit margins (4.3%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: SORL's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: SORL's earnings growth over the past year (79.8%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: SORL earnings growth over the past year (79.8%) exceeded the Auto Components industry 4.1%.


Return on Equity

High ROE: SORL's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SORL Auto Parts's financial position?


Financial Position Analysis

Short Term Liabilities: SORL's short term assets ($503.9M) exceed its short term liabilities ($469.7M).

Long Term Liabilities: SORL's short term assets ($503.9M) exceed its long term liabilities ($13.6M).


Debt to Equity History and Analysis

Debt Level: SORL's debt to equity ratio (104.2%) is considered high.

Reducing Debt: SORL's debt to equity ratio has increased from 3.8% to 104.2% over the past 5 years.

Debt Coverage: SORL's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: SORL's interest payments on its debt are well covered by EBIT (5x 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 2.2x 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%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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?

12.5yrs

Average management tenure


CEO

Xiao Zhang (57yo)

15.6yrs

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 ($USD60.00K) is below average for companies of similar size in the US market ($USD508.62K).

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


Management Age and Tenure

12.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SORL's management team is seasoned and experienced (12.5 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

57yo

Average Age

Experienced Board: SORL's board of directors are considered experienced (4.5 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

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


Management Team

  • Zong Zhou (65yo)

    Chief Financial Officer

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

    Chairman & CEO

    • Tenure: 15.6yrs
    • Compensation: US$60.00k
  • Jin Yu (44yo)

    Chief Operating Officer

    • Tenure: 7.8yrs
    • Compensation: US$50.00k
  • Ben Chen

    Vice President of Finance and Corporate Secretary

    • Tenure: 12.5yrs
  • Shu Chi (58yo)

    Executive Director

    • Tenure: 5.7yrs
    • Compensation: US$10.00k
  • Kan Min

    Accounting Manager

    • Tenure: 0yrs

Board Members

  • Xiao Zhang (57yo)

    Chairman & CEO

    • Tenure: 15.6yrs
    • Compensation: US$60.00k
  • Xiao Zhang (52yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$30.00k
  • Jiang Feng (54yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$10.00k
  • Shu Chi (58yo)

    Executive Director

    • Tenure: 5.7yrs
    • Compensation: US$10.00k
  • Yu Li (52yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$10.00k
  • Hui Wang (77yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$10.00k
  • Jin Liu (76yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$10.00k
  • Xiao Lin

    Independent Director

    • Tenure: 0.6yrs
  • Binghua Feng

    Independent Director

    • Tenure: 0.6yrs

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$84.942m
  • 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 Analysis2019/12/08 23:50
End of Day Share Price2019/12/06 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.