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China Automotive Systems (CAAS)
NASDAQ:CAAS
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China Automotive Systems
(NASDAQ:CAAS)
64Neutral
China Automotive Systems (CAAS) vs. S&P 500 (SPY)
Market Cap
$113.89M
Dividend YieldN/A
Average Volume (3M)61.59K
Price to Earnings (P/E)3.9
Beta (1Y)0.73
Revenue Growth12.94%
EPS Growth-20.38%
CountryUS
Employees4,370
SectorConsumer Cyclical
Sector Strength56
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.99
Shares Outstanding30,170,702
10 Day Avg. Volume41,802
30 Day Avg. Volume61,587
Financial Highlights & Ratios
PEG Ratio2.08
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)4.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
China Automotive Systems Business Overview & Revenue Model
Company DescriptionChina Automotive Systems, Inc. (CAAS) is a leading supplier of power steering components and systems to the Chinese automotive industry. The company operates through its subsidiaries, focusing on the design, manufacture, and sales of steering systems and related products for various types of vehicles. CAAS primarily serves the passenger and commercial vehicle sectors, providing high-quality steering solutions that enhance vehicle safety and performance.
How the Company Makes MoneyChina Automotive Systems generates revenue primarily through the sale of its steering systems and components. The company's key revenue streams include sales to original equipment manufacturers (OEMs) and the aftermarket. CAAS's expansive product portfolio caters to a wide range of vehicles, including passenger cars, trucks, and buses. Additionally, strategic partnerships with major automotive manufacturers and a strong presence in the growing Chinese automotive market significantly contribute to the company's earnings. The company's focus on innovation and quality helps maintain its competitive edge and sustain its revenue growth.
China Automotive Systems Financial Statement Overview
Summary
China Automotive Systems demonstrates strong revenue growth and stable leverage, but faces challenges in profitability and cash flow. The company should focus on enhancing net income and managing capital expenditures to improve financial stability.Income Statement
China Automotive Systems has shown consistent revenue growth with a solid increase from $529.6M in 2022 to $621.4M in the TTM period, indicating a positive growth trajectory. Gross profit margin improved slightly, reflecting efficient cost management. However, net profit margin decreased in the TTM period due to declining net income, suggesting some challenges in profitability.75
Positive
Balance Sheet
The company's balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced leverage position. Stockholders' equity has grown steadily, enhancing financial stability. However, the equity ratio has decreased slightly, which may imply increased reliance on liabilities over time.70
Positive
Cash Flow
Operating cash flow has improved, but free cash flow remains negative due to high capital expenditures. The operating cash flow to net income ratio is healthy, showing efficient cash generation. However, the negative free cash flow highlights potential liquidity challenges.65
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 621.38M | 576.35M | 529.55M | 497.99M | 417.64M | 431.43M | Gross Profit |
| 114.39M | 103.75M | 83.39M | 72.08M | 55.34M | 63.35M | EBIT |
| 42.90M | 39.24M | 24.49M | 11.30M | -10.61M | 9.98M | EBITDA |
| 72.20M | 68.18M | 49.99M | 37.34M | 11.72M | 28.83M | Net Income Common Stockholders |
| 31.80M | 37.66M | 21.18M | 4.39M | -14.36M | 6.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 112.56M | 125.74M | 134.08M | 133.45M | 107.39M | 82.54M | Total Assets |
| 770.67M | 766.44M | 714.35M | 716.76M | 707.56M | 659.96M | Total Debt |
| 137.94M | 142.51M | 46.68M | 129.74M | 44.51M | 124.12M | Net Debt |
| 25.38M | 27.85M | -74.54M | -1.96M | -52.74M | 47.41M | Total Liabilities |
| 377.83M | 398.02M | 386.94M | 379.32M | 387.64M | 350.59M | Stockholders Equity |
| 358.42M | 344.46M | 311.65M | 321.03M | 303.22M | 289.21M |
| Cash Flow | Free Cash Flow | ||||
| -82.00K | -1.77M | 27.54M | 18.37M | 40.86M | -5.61M | Operating Cash Flow |
| 25.63M | 19.91M | 48.02M | 28.27M | 57.43M | 30.29M | Investing Cash Flow |
| -51.14M | -28.64M | -32.74M | 2.96M | -23.76M | -27.32M | Financing Cash Flow |
| 24.69M | 6.80M | -1.58M | -3.12M | -19.83M | -10.74M |
China Automotive Systems Technical Analysis
Negative
3.92
Price Trends
4.28
Negative
4.20
Negative
4.07
Negative
Market Momentum
-0.18
Negative
45.98
Neutral
73.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAAS, the sentiment is Negative. The current price of 3.92 is below the 20-day moving average (MA) of 3.99, below the 50-day MA of 4.28, and below the 200-day MA of 4.07, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 73.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAAS.
China Automotive Systems Risk Analysis
China Automotive Systems disclosed 48 risk factors in its most recent earnings report. China Automotive Systems reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
China Automotive Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $143.32M | 9.05 | 8.16% | ― | 7.69% | 7934.59% | |
64 Neutral | $113.89M | 3.90 | 8.64% | ― | 12.94% | -20.38% | |
61 Neutral | $178.21M | ― | -6.40% | ― | 4.26% | 64.64% | |
60 Neutral | $6.78B | 11.63 | 3.24% | 4.20% | 2.36% | -21.91% | |
51 Neutral | $108.88M | ― | -6.20% | ― | -6.92% | -215.11% | |
48 Neutral | $69.33M | ― | -89.61% | ― | -8.51% | 9.63% | |
44 Neutral | $157.18M | ― | -81.61% | ― | 16.25% | 32.95% |
* Consumer Cyclical Sector Average
Performance Comparison
CAAS
China Automotive Systems
3.92
0.94
31.54%
MPAA
Motorcar Parts Of America
9.47
3.92
70.63%
SRI
Stoneridge
3.91
-11.44
-74.53%
STRT
Strattec Security
37.11
14.11
61.35%
SUP
Superior Industries International
2.34
-1.36
-36.76%
INVZ
Innoviz Technologies
0.79
-0.23
-22.55%
China Automotive Systems Earnings Call Summary
Earnings Call Date: Mar 28, 2025 | % Change Since: -25.48% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant sales growth, particularly in EPS products, and a strong domestic market performance. However, these positives were tempered by challenges such as declining North American sales, reduced net income, and lower gross margins. Despite these challenges, the company shows confidence in its financial health, as reflected in the special dividend payout.Highlights
Record Net Sales Increase
Net sales increased by 12.9% year-over-year to a record $650.9 million in 2024, driven by a 29.9% rise in EPS product sales.
Strong Domestic Growth
Henglong reported a 20% increase in domestic sales to passenger vehicles, with significant contributions from sales to Chery Auto and KYB EPS products.
Special Cash Dividend
A special cash dividend of $0.80 per common share, totaling approximately $22.4 million, was paid to shareholders, reflecting confidence in sustainable sales growth.
EPS Product Expansion
EPS sales accounted for 38.9% of total revenue in 2024, up from 33.8% in 2023, indicating a strong shift towards electric power steering systems.
Positive Cash Flow
Net cash provided by operating activities was $9.8 million in 2024, showcasing effective cash flow management.
Lowlights
Decline in North American Sales
North American operations reported lower sales in 2024, primarily due to reduced demand by Stellantis.
Gross Margin Decline
Gross margin decreased to 16.8% in 2024 from 18% in 2023, mainly due to a change in product mix and lower average selling prices.
Decreased Net Income
Net income attributable to parent company's common shareholders declined to $30 million in 2024 from $37.7 million in 2023.
Increased Interest Expense
Interest expense rose to $1.8 million in 2024 from $1.0 million in 2023, largely due to increased bank loans.
Company Guidance
During the China Automotive Systems conference call for the fourth quarter and fiscal year 2024, the company provided guidance for 2025, projecting revenue growth to reach $700 million. This forecast reflects an anticipated increase of $50 million over the previous year, primarily driven by a 30% year-over-year growth in sales of electric power steering (EPS) products. In 2024, net sales increased by 12.9% to $650.9 million, with EPS sales accounting for 38.9% of total revenue. The company's gross profit for 2024 rose by 5.2% to $109.2 million, although the gross margin decreased slightly to 16.8% due to changes in product mix. Operating expenses were well-managed, rising only 4.2% against a net sales increase of 12.9%. The management highlighted that R&D expenses were focused on EPS and autonomous driving technologies, with a total of $27.6 million spent in 2024. The company also reported a net income of $30 million, equating to $0.99 per share, and emphasized its commitment to shareholder value through initiatives like a special cash dividend and a share buyback program.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.