China Automotive Engineering Research Institute Adjusts Valuation Amidst Declining Cash Flow and Growth Concerns

China Automotive Engineering Research Institute Co., Ltd. has recently undergone an evaluation adjustment, reflecting changes in its valuation metrics. The company's P/E ratio stands at 19, while its Price to Book Value is recorded at 2.42. Additionally, the EV to EBIT ratio is noted at 9.57, and the EV to EBITDA ratio is at 7.69. The EV to Capital Employed ratio is 2.63, and the EV to Sales ratio is 3.64. The PEG ratio is reported at 9.85, with a dividend yield of 1.95%.
The company has demonstrated a return on capital employed (ROCE) of 27.46% and a return on equity (ROE) of 13.01%. However, the long-term growth trajectory appears subdued, with net sales increasing at an annual rate of 7.37% and operating profit at 30.71% over the past five years. The latest financial results indicate a decline in operating cash flow, which is at its lowest point of CNY 588.55 million.

Overall, the stock has underperformed the market over the past year, generating a return of 1.36%, significantly lower than the China Shanghai Composite's return of 26.76%.

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