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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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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 44.74%

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

INTEREST(HY) At USD 0.82 MM has Grown at 35.76%
OPERATING PROFIT MARGIN(Q) Lowest at 6.29 %

With ROE of 11.20%, it has a attractive valuation with a 0.35 Price to Book Value

Over the past year, while the stock has generated a return of -10.78%, its profits have risen by 10.9% ; the PEG ratio of the company is 0.3

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 0.59% over the previous quarter and collectively hold 5.62% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Automotive Systems, Inc.

-10.78%

0.01

38.32%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.38%

EBIT Growth (5y)

44.74%

EBIT to Interest (avg)

8.69

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.30

Tax Ratio

15.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

5.62%

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

0.35

EV to EBIT

0.87

EV to EBITDA

0.64

EV to Capital Employed

0.12

EV to Sales

0.05

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

13.98%

ROE (Latest)

11.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 42.41 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.33 times

RAW MATERIAL COST(Y)

Fallen by -8.17% (YoY

CASH AND EQV(HY)

Highest at USD 317.67 MM

DEBT-EQUITY RATIO (HY)

Lowest at -25.73 %

NET SALES(Q)

Highest at USD 193.2 MM

NET PROFIT(Q)

Highest at USD 9.67 MM

EPS(Q)

Highest at USD 0.32

-5What is not working for the Company

INTEREST(HY)

At USD 0.82 MM has Grown at 35.76%

OPERATING PROFIT MARGIN(Q)

Lowest at 6.29 %

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

Operating Cash Flow

Highest at USD 42.41 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 5.33 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at USD 193.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Profit

Highest at USD 9.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.32

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 317.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -25.73 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -8.17% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Interest

At USD 0.82 MM has Grown at 35.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 6.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales