CHINA AUTOMOTIVE SYSTEMS INC (CAAS)

US16936R1059 - Common Stock

3.55  +0.18 (+5.34%)

After market: 3.55 0 (0%)

Fundamental Rating

4

Taking everything into account, CAAS scores 4 out of 10 in our fundamental rating. CAAS was compared to 42 industry peers in the Automobile Components industry. While CAAS is still in line with the averages on profitability rating, there are concerns on its financial health. CAAS has a correct valuation and a medium growth rate.



4

1. Profitability

1.1 Basic Checks

CAAS had positive earnings in the past year.
CAAS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CAAS reported negative net income in multiple years.
Of the past 5 years CAAS 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 4.39%, CAAS is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
CAAS's Return On Equity of 9.46% is fine compared to the rest of the industry. CAAS outperforms 66.67% of its industry peers.
CAAS's Return On Invested Capital of 3.07% is on the low side compared to the rest of the industry. CAAS is outperformed by 64.29% of its industry peers.
Industry RankSector Rank
ROA 4.39%
ROE 9.46%
ROIC 3.07%
ROA(3y)1.27%
ROA(5y)1.13%
ROE(3y)2.87%
ROE(5y)2.58%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

CAAS's Profit Margin of 5.70% is fine compared to the rest of the industry. CAAS outperforms 78.57% of its industry peers.
In the last couple of years the Profit Margin of CAAS has grown nicely.
With a Operating Margin value of 3.87%, CAAS perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
CAAS's Operating Margin has declined in the last couple of years.
CAAS's Gross Margin of 17.24% is in line compared to the rest of the industry. CAAS outperforms 40.48% of its industry peers.
CAAS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 3.87%
PM (TTM) 5.7%
GM 17.24%
OM growth 3Y47.12%
OM growth 5Y-19.11%
PM growth 3Y19.97%
PM growth 5YN/A
GM growth 3Y2.33%
GM growth 5Y-1.46%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAAS is destroying value.
There is no outstanding debt for CAAS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 1.89 indicates that CAAS is not a great score, but indicates only limited risk for bankruptcy at the moment.
CAAS has a Altman-Z score (1.89) which is in line with its industry peers.
The Debt to FCF ratio of CAAS is 28.69, which is on the high side as it means it would take CAAS, 28.69 years of fcf income to pay off all of its debts.
CAAS has a worse Debt to FCF ratio (28.69) than 61.90% of its industry peers.
CAAS has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
CAAS has a better Debt to Equity ratio (0.34) than 64.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 28.69
Altman-Z 1.89
ROIC/WACC0.44
WACC6.97%

2.3 Liquidity

A Current Ratio of 1.49 indicates that CAAS should not have too much problems paying its short term obligations.
CAAS's Current ratio of 1.49 is on the low side compared to the rest of the industry. CAAS is outperformed by 69.05% of its industry peers.
CAAS has a Quick Ratio of 1.18. This is a normal value and indicates that CAAS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.18, CAAS is in line with its industry, outperforming 52.38% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 1.18

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 45.07% over the past year.
Measured over the past 5 years, CAAS shows a small growth in Earnings Per Share. The EPS has been growing by 1.52% on average per year.
CAAS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.17%.
Measured over the past years, CAAS shows a small growth in Revenue. The Revenue has been growing by 1.19% on average per year.
EPS 1Y (TTM)45.07%
EPS 3Y29.19%
EPS 5Y1.52%
EPS growth Q2Q29.17%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y7.08%
Revenue growth 5Y1.19%
Revenue growth Q2Q0.22%

3.2 Future

Based on estimates for the next years, CAAS will show a decrease in Earnings Per Share. The EPS will decrease by -2.73% on average per year.
The Revenue is expected to grow by 4.88% on average over the next years.
EPS Next Y-29.04%
EPS Next 2Y-2.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.1%
Revenue Next 2Y4.88%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 3.45, the valuation of CAAS can be described as very cheap.
CAAS's Price/Earnings ratio is rather cheap when compared to the industry. CAAS is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, CAAS is valued rather cheaply.
The Price/Forward Earnings ratio is 5.44, which indicates a rather cheap valuation of CAAS.
Based on the Price/Forward Earnings ratio, CAAS is valued cheaply inside the industry as 97.62% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, CAAS is valued rather cheaply.
Industry RankSector Rank
PE 3.45
Fwd PE 5.44

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAAS is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 27.55
EV/EBITDA -0.02

4.3 Compensation for Growth

A cheap valuation may be justified as CAAS's earnings are expected to decrease with -2.73% in the coming years.
PEG (NY)N/A
PEG (5Y)2.27
EPS Next 2Y-2.73%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

CAAS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CHINA AUTOMOTIVE SYSTEMS INC

NASDAQ:CAAS (3/28/2024, 8:00:39 PM)

After market: 3.55 0 (0%)

3.55

+0.18 (+5.34%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap107.17M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 3.45
Fwd PE 5.44
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.27
Profitability
Industry RankSector Rank
ROA 4.39%
ROE 9.46%
ROCE
ROIC
ROICexc
ROICexgc
OM 3.87%
PM (TTM) 5.7%
GM 17.24%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.49
Quick Ratio 1.18
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)45.07%
EPS 3Y29.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y-29.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.17%
Revenue growth 3Y7.08%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y