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China Zenix Auto International

OTCPK:ZXAI.Y
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZXAI.Y
OTCPK
$21M
Market Cap
  1. Home
  2. US
  3. Automobiles
Company description

China Zenix Auto International Limited designs, manufactures, and sells commercial vehicle wheels to aftermarket and original equipment manufacturers in the People’s Republic of China and internationally. The last earnings update was 65 days ago. More info.


Add to Portfolio Compare Print
  • China Zenix Auto International has significant price volatility in the past 3 months.
ZXAI.Y Share Price and Events
7 Day Returns
0%
OTCPK:ZXAI.Y
-0.4%
US Auto Components
-0.3%
US Market
1 Year Returns
-51.2%
OTCPK:ZXAI.Y
-26.3%
US Auto Components
3.9%
US Market
ZXAI.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Zenix Auto International (ZXAI.Y) 0% 0% -21.7% -51.2% -60% -83.9%
US Auto Components -0.4% 0.2% -16% -26.3% -2.2% -11.7%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • ZXAI.Y underperformed the Auto Components industry which returned -26.3% over the past year.
  • ZXAI.Y underperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
ZXAI.Y
Industry
5yr Volatility vs Market
Related Companies

ZXAI.Y Value

 Is China Zenix Auto International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Zenix Auto International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Zenix Auto International.

OTCPK:ZXAI.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:ZXAI.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.266 (1 + (1- 25%) (399.68%))
3.721
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for OTCPK:ZXAI.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Zenix Auto International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:ZXAI.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 14.65%)
2020 282.99 Est @ 49.93% 246.83
2021 384.22 Est @ 35.77% 292.30
2022 483.57 Est @ 25.86% 320.88
2023 575.07 Est @ 18.92% 332.83
2024 655.94 Est @ 14.06% 331.13
2025 725.89 Est @ 10.66% 319.61
2026 786.02 Est @ 8.28% 301.87
2027 838.03 Est @ 6.62% 280.72
2028 883.72 Est @ 5.45% 258.19
2029 924.67 Est @ 4.63% 235.64
Present value of next 10 years cash flows CN¥2,920.00
OTCPK:ZXAI.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥924.67 × (1 + 2.73%) ÷ (14.65% – 2.73%)
CN¥7,969.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥7,969.11 ÷ (1 + 14.65%)10
CN¥2,030.81
OTCPK:ZXAI.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥2,920.00 + CN¥2,030.81
CN¥4,950.81
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥4,950.81 / 51.63
CN¥95.9
OTCPK:ZXAI.Y Discount to Share Price
Calculation Result
Exchange Rate CNY/USD
(Reporting currency to currency of OTCPK:ZXAI.Y)
0.145
Value per Share
(USD)
= Value per Share in CNY x Exchange Rate (CNY/USD)
= CN¥95.9 x 0.145
$13.94
Value per share (USD) From above. $13.94
Current discount Discount to share price of $0.40
= -1 x ($0.40 - $13.94) / $13.94
97.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Zenix Auto International is available for.
Intrinsic value
>50%
Share price is $0.4 vs Future cash flow value of $13.94
Current Discount Checks
For China Zenix Auto International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Zenix Auto International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Zenix Auto International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Zenix Auto International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Zenix Auto International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:ZXAI.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥-0.75
OTCPK:ZXAI.Y Share Price ** OTCPK (2019-07-18) in USD $0.4
OTCPK:ZXAI.Y Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.879 CN¥2.75
United States of America Auto Components Industry PE Ratio Median Figure of 23 Publicly-Listed Auto Components Companies 14.42x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Zenix Auto International.

OTCPK:ZXAI.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OTCPK:ZXAI.Y Share Price ÷ EPS (both in CNY)

= 2.75 ÷ -0.75

-3.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Zenix Auto International is loss making, we can't compare its value to the US Auto Components industry average.
  • China Zenix Auto International is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does China Zenix Auto International's expected growth come at a high price?
Raw Data
OTCPK:ZXAI.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -3.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Auto Components Industry PEG Ratio Median Figure of 21 Publicly-Listed Auto Components Companies 1.05x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for China Zenix Auto International, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on China Zenix Auto International's assets?
Raw Data
OTCPK:ZXAI.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥49.09
OTCPK:ZXAI.Y Share Price * OTCPK (2019-07-18) in USD $0.4
OTCPK:ZXAI.Y Share Price converted to CNY reporting currency Exchange rate (USD/ CNY) 6.879 CN¥2.75
United States of America Auto Components Industry PB Ratio Median Figure of 40 Publicly-Listed Auto Components Companies 1.32x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
OTCPK:ZXAI.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:ZXAI.Y Share Price ÷ Book Value per Share (both in CNY)

= 2.75 ÷ 49.09

0.06x

* Primary Listing of China Zenix Auto International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Zenix Auto International is good value based on assets compared to the US Auto Components industry average.
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Value checks
We assess China Zenix Auto International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. China Zenix Auto International has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ZXAI.Y Future Performance

 How is China Zenix Auto International expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Zenix Auto International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.1%
Expected Auto Components industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Zenix Auto International expected to grow at an attractive rate?
  • Unable to compare China Zenix Auto International's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare China Zenix Auto International's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare China Zenix Auto International's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OTCPK:ZXAI.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 17.1%
United States of America Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:ZXAI.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:ZXAI.Y Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
OTCPK:ZXAI.Y Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 3,003 213 -39
2018-12-31 3,150 290 -8
2018-09-30 3,190 193 15
2018-06-30 3,103 98 24
2018-03-31 2,977 115 22
2017-12-31 2,831 -91 9
2017-09-30 2,687 -91 -12
2017-06-30 2,536 -47 -23
2017-03-31 2,394 -66 -10
2016-12-31 2,250 179 -26
2016-09-30 2,245 204 -6
2016-06-30 2,231 247 -14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if China Zenix Auto International is high growth as no earnings estimate data is available.
  • Unable to determine if China Zenix Auto International is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:ZXAI.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from China Zenix Auto International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ZXAI.Y Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
OTCPK:ZXAI.Y Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 -0.75
2018-12-31 -0.15
2018-09-30 0.29
2018-06-30 0.47
2018-03-31 0.43
2017-12-31 0.18
2017-09-30 -0.23
2017-06-30 -0.44
2017-03-31 -0.20
2016-12-31 -0.50
2016-09-30 -0.11
2016-06-30 -0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if China Zenix Auto International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether China Zenix Auto International is trading at China Zenix Auto International'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. China Zenix Auto International's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Automobiles companies here
  3. While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access China Zenix Auto International's filings and announcements here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess China Zenix Auto International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Zenix Auto International has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ZXAI.Y Past Performance

  How has China Zenix Auto International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Zenix Auto International's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Zenix Auto International does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare China Zenix Auto International's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare China Zenix Auto International's 1-year growth to the US Auto Components industry average as it is not currently profitable.
Earnings and Revenue History
China Zenix Auto International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Zenix Auto International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ZXAI.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 3,002.76 -38.63 311.60 52.24
2018-12-31 3,149.61 -7.98 319.23 51.76
2018-09-30 3,190.50 14.73 324.43 54.73
2018-06-30 3,103.47 24.37 306.39 55.97
2018-03-31 2,976.84 22.28 305.67 56.26
2017-12-31 2,830.99 9.05 304.00 57.42
2017-09-30 2,686.59 -12.07 308.28 65.44
2017-06-30 2,535.93 -22.66 310.47 71.23
2017-03-31 2,394.49 -10.10 317.39 78.34
2016-12-31 2,249.53 -25.92 321.29 84.64
2016-09-30 2,245.15 -5.71 324.60 75.36
2016-06-30 2,231.04 -13.52 324.77 69.35
2016-03-31 2,248.88 -32.25 333.67 61.80
2015-12-31 2,445.76 -28.57 348.95 51.25
2015-09-30 2,641.88 -50.87 365.49 63.17
2015-06-30 2,858.23 -39.32 382.19 77.32
2015-03-31 3,160.58 27.13 392.54 87.82
2014-12-31 3,334.36 79.23 403.33 98.04
2014-09-30 3,533.41 147.37 410.39 96.68
2014-06-30 3,768.61 220.57 420.65 92.90
2014-03-31 3,868.15 242.91 423.90 91.43
2013-12-31 3,802.31 232.65 417.32 91.63
2013-09-30 3,619.69 225.25 405.49 87.59
2013-06-30 3,451.80 220.82 386.69 84.12
2013-03-31 3,523.99 268.94 387.56 89.28
2012-12-31 3,737.97 361.63 390.15 90.82
2012-09-30 3,970.08 424.93 387.02 89.52

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if China Zenix Auto International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if China Zenix Auto International has efficiently used its assets last year compared to the US Auto Components industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if China Zenix Auto International improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess China Zenix Auto International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Zenix Auto International has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ZXAI.Y Health

 How is China Zenix Auto International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Zenix Auto International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Zenix Auto International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Zenix Auto International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Zenix Auto International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Zenix Auto International Company Filings, last reported 3 months ago.

OTCPK:ZXAI.Y Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,534.14 567.92 1,267.24
2018-12-31 2,538.64 482.91 1,223.25
2018-09-30 2,551.85 567.91 1,256.08
2018-06-30 2,566.93 568.60 1,104.75
2018-03-31 2,572.77 568.60 1,073.73
2017-12-31 2,546.62 566.74 1,041.61
2017-09-30 2,537.13 560.98 1,085.76
2017-06-30 2,542.57 558.00 1,060.08
2017-03-31 2,550.49 558.00 1,007.73
2016-12-31 2,537.57 559.40 1,186.80
2016-09-30 2,549.20 558.68 1,241.81
2016-06-30 2,565.23 572.34 1,165.22
2016-03-31 2,560.58 571.40 1,140.50
2015-12-31 2,563.49 569.68 1,077.25
2015-09-30 2,554.91 567.84 1,105.38
2015-06-30 2,578.75 567.48 974.15
2015-03-31 2,592.84 565.37 965.11
2014-12-31 2,592.06 513.51 816.99
2014-09-30 2,605.78 558.00 1,096.83
2014-06-30 2,618.07 498.00 966.42
2014-03-31 2,565.71 558.00 940.29
2013-12-31 2,512.83 558.00 908.74
2013-09-30 2,458.29 605.00 935.92
2013-06-30 2,397.26 615.00 802.70
2013-03-31 2,322.44 685.00 873.85
2012-12-31 2,279.70 700.00 987.27
2012-09-30 2,232.07 755.50 949.54
  • China Zenix Auto International's level of debt (22.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (21.7% vs 22.4% today).
  • Debt is well covered by operating cash flow (37.6%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on China Zenix Auto International's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess China Zenix Auto International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Zenix Auto International has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ZXAI.Y Dividends

 What is China Zenix Auto International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from China Zenix Auto International dividends.
If you bought $2,000 of China Zenix Auto International shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate China Zenix Auto International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate China Zenix Auto International's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:ZXAI.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:ZXAI.Y Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
OTCPK:ZXAI.Y Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2014-04-17 0.000 0.000
2013-11-20 0.000 0.000
2013-08-22 0.000 0.000
2013-05-24 0.000 0.000
2013-04-10 0.000 0.000
2013-03-21 0.000 0.000
2012-03-08 0.373 1.943

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as China Zenix Auto International has not reported any payouts.
  • Unable to verify if China Zenix Auto International's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of China Zenix Auto International's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as China Zenix Auto International 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.
X
Income/ dividend checks
We assess China Zenix Auto International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Zenix Auto International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Zenix Auto International has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ZXAI.Y Management

 What is the CEO of China Zenix Auto International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jianhui Lai
AGE 53
CEO Bio

Mr. Jianhui Lai founded China Zenix Auto International Limited in 2003 and serves as its Chairman and Chief Executive Officer. Mr. Lai has over 20 years of experience in the commercial vehicle wheel industry in the PRC, particularly in managing vehicle wheel businesses. Mr. Lai was factory manager of Zhangzhou Xiangcheng Zhengxing Automobile Wheel Factory from 1996 to 2003, factory manager of Fujian Pinghe Guanxi Automobile Wheel Factory from 1993 to 1996 and factory manager of Pinghe Automobile Tire and Bicycle Repair Depot from 1988 to 1993. Mr. Lai was awarded The Outstanding Private Entrepreneur in the PRC in 2004 and The Outstanding Individual of the PRC Automotive Industry in 2008, in recognition of his business achievements and stature in the industry. Mr. Lai is also the founder of two schools (providing primary school to high school education) in the PRC, namely Pinghe Zhengxing School and Zhangzhou Zhengxing School.

CEO Compensation
  • Insufficient data for Jianhui to compare compensation growth.
  • Insufficient data for Jianhui to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the China Zenix Auto International management team in years:

12.5
Average Tenure
51.5
Average Age
  • The average tenure for the China Zenix Auto International management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jianhui Lai

TITLE
Founder
AGE
53

Martin Cheung

TITLE
Chief Financial Officer
AGE
50
TENURE
5.3 yrs

Zhang Guohe

TITLE
Chief Technology Officer
AGE
73
TENURE
16.5 yrs

Junqiu Gao

TITLE
Deputy Chief Executive Officer
AGE
52
TENURE
11.1 yrs

Jiangjun Yang

TITLE
Chief Production Officer
AGE
42
TENURE
12.5 yrs

Xichuan Lai

TITLE
Financial Controller
AGE
51
TENURE
12.9 yrs
Board of Directors Tenure

Average tenure and age of the China Zenix Auto International board of directors in years:

8.2
Average Tenure
52.5
Average Age
  • The tenure for the China Zenix Auto International board of directors is about average.
Board of Directors

Jianhui Lai

TITLE
Founder
AGE
53

Junqiu Gao

TITLE
Deputy Chief Executive Officer
AGE
52
TENURE
10.4 yrs

Yichun Zhang

TITLE
Independent Director
AGE
85
TENURE
8.2 yrs

William Sharp

TITLE
Independent Director
AGE
77
TENURE
8.2 yrs

Xiandai Zhang

TITLE
Independent Director
AGE
50
TENURE
4.7 yrs

To Suen

TITLE
Independent Director
AGE
45
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess China Zenix Auto International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Zenix Auto International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ZXAI.Y News

Simply Wall St News

ZXAI.Y Company Info

Description

China Zenix Auto International Limited designs, manufactures, and sells commercial vehicle wheels to aftermarket and original equipment manufacturers in the People’s Republic of China and internationally. The company offers tubed steel wheels, tubeless steel wheels, and off-road steel wheels; aluminum wheels; and wheel components, including wheel discs. It sells its products directly and through a network of distributors under the Zhengxing, Zhengxing Prince, Haixia, Zhengchang, Lianxing, and CZX brands. The company was formerly known as Richwheel Limited and changed its name to China Zenix Auto International Limited in November 2010. The company was founded in 2003 and is headquartered in Zhangzhou, the People’s Republic of China. China Zenix Auto International Limited is a subsidiary of Newrace Limited.

Details
Name: China Zenix Auto International Limited
ZXAI.Y
Exchange: OTCPK
Founded: 2003
$20,655,162
51,625,000
Website: http://www.zenixauto.com
Address: China Zenix Auto International Limited
No. 1608, North Circle Road State Highway,
Zhangzhou,
Fujian Province, 363000,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK ZXAI.Y ADS Pink Sheets LLC US USD 12. May 2011
Number of employees
Current staff
Staff numbers
4,017
China Zenix Auto International employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 00:20
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2018/03/15
Last earnings filing: 2019/05/16
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.