China Automotive Systems, Inc. (CAAS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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China Yuchai International Ltd.

Why is China Automotive Systems, Inc. ?

Poor Management Efficiency with a low ROE of 6.87%

The company has been able to generate a Return on Equity (avg) of 6.87% signifying low profitability per unit of shareholders funds

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 60.34%

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At USD 0.94 MM has Grown at 59.12%
ROCE(HY) Lowest at 8.04%
RAW MATERIAL COST(Y) Grown by 6.53% (YoY)

With ROE of 10.37%, it has a attractive valuation with a 0.38 Price to Book Value

Over the past year, while the stock has generated a return of -6.67%, its profits have fallen by -15.9%

Majority shareholders : Mutual Funds

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.67% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to China Automotive Systems, Inc. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China Automotive Systems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Automotive Systems, Inc.

-4.79%

-0.04

41.03%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.28%

EBIT Growth (5y)

60.34%

EBIT to Interest (avg)

8.69

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.26

Tax Ratio

15.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

4.90%

ROCE (avg)

5.14%

ROE (avg)

6.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.38

EV to EBIT

2.61

EV to EBITDA

1.65

EV to Capital Employed

0.29

EV to Sales

0.13

PEG Ratio

Dividend Yield

17.99%

ROCE (Latest)

10.96%

ROE (Latest)

10.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 49.92 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.19 times

OPERATING PROFIT(Q)

Highest at USD 16.15 MM

PRE-TAX PROFIT(Q)

Highest at USD 15.08 MM

-10What is not working for the Company

INTEREST(HY)

At USD 0.94 MM has Grown at 59.12%

ROCE(HY)

Lowest at 8.04%

RAW MATERIAL COST(Y)

Grown by 6.53% (YoY

Here's what is working for China Automotive Systems, Inc.

Operating Cash Flow

Highest at USD 49.92 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit

Highest at USD 16.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 15.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Inventory Turnover Ratio

Highest at 5.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for China Automotive Systems, Inc.

Interest

At USD 0.94 MM has Grown at 59.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 6.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales