China Automotive Systems (CAAS) AI Stock Analysis

• Market Cap: $125.21M
• Dividend Yield: N/A
• Average Volume (3M): 34.26K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.52
• Revenue Growth: 17.08%
• EPS Growth: -18.03%
• Country: US
• Employees: 4,370
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.25
• Shares Outstanding: 30,170,702
• 10 Day Avg. Volume: 38,810
• 30 Day Avg. Volume: 34,263
• PEG Ratio: -0.20
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -3.57
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.61
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $4.50 ▲(5.39% Upside)

China Automotive Systems' strong revenue growth and undervalued P/E ratio are significant positives, indicating potential for future appreciation. However, challenges in cash flow management and slightly bearish technical indicators temper the outlook. The balanced sentiment from the earnings call supports a cautiously optimistic view.

China Automotive Systems Business Overview & Revenue Model

Company Description

China Automotive Systems, Inc. (CAAS) is a leading manufacturer and supplier of power steering systems and other automotive components in China. The company operates primarily in the automotive parts sector, focusing on the design, development, and production of hydraulic and electric power steering systems, as well as other automotive systems and components. CAAS serves a diverse range of customers, including domestic and international automotive manufacturers, and is committed to advancing automotive technology and enhancing vehicle safety and performance.

How the Company Makes Money

China Automotive Systems generates revenue primarily through the sale of its automotive components, particularly its power steering systems. The company has established key revenue streams by supplying major automotive manufacturers, both in China and abroad, leveraging long-term partnerships and contracts with these clients. Additionally, CAAS benefits from increasing demand for advanced automotive technology, as the industry shifts towards more electric and automated vehicles. The company's focus on research and development also allows it to innovate and introduce new products, which can lead to additional revenue opportunities. Overall, CAAS's financial success is supported by its strategic alliances, efficient production processes, and a strong presence in the growing automotive market.

China Automotive Systems Financial Statement Overview

Summary

China Automotive Systems shows strong revenue growth and stable gross margins, indicating effective operational management. The balance sheet is solid with manageable leverage, though further debt reduction would be beneficial. Cash flow management remains a challenge, with negative free cash flow impacting liquidity. Overall, the company is on a positive trajectory but needs to focus on improving cash flow generation.

Income Statement

China Automotive Systems has shown consistent revenue growth, with a TTM revenue growth rate of 2.6% and a strong annual growth trend. The gross profit margin remains stable around 16.7%, indicating effective cost management. However, the net profit margin has slightly decreased to 4.2% in the TTM, reflecting some pressure on profitability. Overall, the company demonstrates solid revenue growth and stable margins, but there is room for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.45 in the TTM, indicating a manageable level of leverage. Return on equity is at 8.1%, showing decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced capital structure. While the company maintains a healthy balance sheet, further reduction in debt could enhance financial stability.

Cash Flow

Operating cash flow has improved significantly in the TTM, but free cash flow remains negative, posing a concern for liquidity. The free cash flow to net income ratio is negative, indicating challenges in converting earnings into free cash flow. Despite improvements in operating cash flow, the company needs to address its free cash flow deficit to strengthen its cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	696.27M	650.93M	576.35M	529.55M	497.99M	417.64M
Gross Profit	114.94M	109.18M	103.75M	83.39M	72.08M	55.34M
EBITDA	68.70M	66.51M	68.18M	49.99M	37.34M	11.72M
Net Income	29.32M	29.98M	37.66M	21.18M	4.39M	-14.36M
Balance Sheet
Total Assets	843.72M	850.58M	766.44M	714.35M	716.76M	707.56M
Cash, Cash Equivalents and Short-Term Investments	102.19M	84.52M	125.74M	134.08M	133.45M	107.39M
Total Debt	156.42M	168.52M	142.51M	46.68M	129.74M	44.51M
Total Liabilities	432.84M	460.79M	398.02M	386.94M	379.32M	387.64M
Stockholders Equity	366.38M	349.57M	344.46M	311.65M	321.03M	303.22M
Cash Flow
Free Cash Flow	-2.94M	-34.68M	-1.77M	27.54M	18.37M	40.86M
Operating Cash Flow	49.73M	9.78M	19.91M	48.02M	28.27M	57.43M
Investing Cash Flow	-60.00M	-77.93M	-28.64M	-32.74M	2.96M	-23.76M
Financing Cash Flow	357.00K	17.36M	6.80M	-1.58M	-3.12M	-19.83M

China Automotive Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.27 is below the 20-day moving average (MA) of 4.30, below the 50-day MA of 4.49, and above the 200-day MA of 4.25, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 14.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAAS.

China Automotive Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAAS	69 Neutral	$125.21M	4.27	8.04%	―	17.08%	-18.03%
SMP	65 Neutral	$841.47M	12.45	10.49%	3.29%	23.96%	11.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SRI	54 Neutral	$172.86M	―	-12.26%	―	-4.91%	-331.53%
LIDR	50 Neutral	$89.07M	-0.77	-222.90%	―	-19.11%	73.51%
CVGI	43 Neutral	$54.74M	-1.20	-27.62%	―	-27.36%	-218.40%
KNDI	42 Neutral	$93.72M	―	―	―	3.21%	-6985.88%

China Automotive Systems Corporate Events

China Automotive Systems Completes Merger and Redomiciles

On September 10, 2025, China Automotive Systems, Inc. held a Special Meeting of Stockholders where a proposal to approve a merger with its subsidiary, China Automotive Systems Holdings, Inc. (CAAS Cayman), was passed. The merger was completed on September 11, 2025, resulting in the company redomiciling to the Cayman Islands and its shares being listed on NASDAQ under the symbol ‘CAAS’.

The most recent analyst rating on (CAAS) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on China Automotive Systems stock, see the CAAS Stock Forecast page.

China Automotive Systems’ Earnings Call: Growth Amid Challenges

The recent earnings call for China Automotive Systems presented a balanced sentiment, highlighting significant revenue growth, particularly in the EPS segment and international markets, alongside strategic initiatives like new product launches. However, the company faces challenges such as a decreased gross profit margin and increased tax expenses. Overall, the sentiment was a mix of positive growth tempered by operational hurdles.

China Automotive Systems Reports Strong Q2 Growth

China Automotive Systems, Inc., a prominent supplier of power steering components and systems in China, operates through multiple joint ventures and subsidiaries, serving major automotive manufacturers globally. The company recently reported a significant increase in income from operations by 20.2% for the second quarter of 2025, alongside an 11.1% rise in net sales, reaching $176.2 million. Notably, sales in Brazil surged by 49.4%, contributing to the overall growth. The company also saw a substantial growth in its Electric Power Steering (EPS) products, which now account for 41.4% of total sales.