China Automotive Systems (CAAS) AI Stock Analysis

• Market Cap: $126.11M
• Dividend Yield: N/A
• Average Volume (3M): 21.67K
• Price to Earnings (P/E): 4.4
• Beta (1Y): 0.62
• Revenue Growth: 18.33%
• EPS Growth: -26.25%
• Country: US
• Employees: 4,370
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 0.24
• Shares Outstanding: 30,170,702
• 10 Day Avg. Volume: 24,379
• 30 Day Avg. Volume: 21,667
• PEG Ratio: 0.07
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.67
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: 0.53
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: $4.50 ▲(7.66%Upside)

The overall stock score of 68.2 reflects strong financial performance driven by revenue growth and stable profitability. This is tempered by increased leverage and cash flow issues. The low P/E ratio offers potential value, while the earnings call highlights growth yet balances it with increased expenses and regional sales declines. Technical analysis indicates neutral momentum, suggesting a stable but cautious outlook.

China Automotive Systems Business Overview & Revenue Model

Company Description

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronic and hydraulic power steering systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services, as well as markets automotive parts in North America and Brazil. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. was incorporated in 1999 and is headquartered in Jingzhou, the People's Republic of China.

How the Company Makes Money

China 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 shows strong revenue growth and stable profitability, with consistent EBIT and EBITDA margins. However, increased leverage and persistent cash flow challenges, with negative free cash flow, pose risks. The company demonstrates potential for growth but needs to address these financial issues.

Income Statement

China Automotive Systems shows a consistent revenue growth trajectory, with a notable increase of 22.1% in 2023 and 8.5% in 2024 on an annual basis. The TTM data indicates a smaller growth of 4.3%. The company maintains a stable gross profit margin around 16-17%, with the TTM at 16.7%. Its net profit margin has slightly dipped to 4.2% TTM from 4.6% in 2024, but remains healthy. EBIT and EBITDA margins are stable, signaling strong operational performance.

Balance Sheet

The balance sheet reveals a stable equity position with an equity ratio of 42.3% TTM. The debt-to-equity ratio has increased notably to 0.98 TTM from 0.48 in 2024, indicating higher leverage, a potential risk. Return on equity is robust at 8.1% TTM, though slightly down from 8.6% in 2024, reflecting strong profitability against equity. Overall, the balance sheet reflects solid equity support but increasing leverage.

Cash Flow

Cash flow analysis highlights challenges with negative free cash flow of -$22.5M TTM, although operating cash flow has improved to $17.4M. The free cash flow to net income ratio is negative, indicating cash flow issues despite profit. The operating cash flow to net income ratio at 0.60 TTM, improved from 0.33 in 2024, suggests improving cash conversion but remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	678.63M	650.93M	576.35M	529.55M	497.99M	417.64M
Gross Profit	113.70M	109.18M	103.75M	83.39M	72.08M	55.34M
EBITDA	66.78M	66.51M	68.18M	49.99M	37.34M	11.72M
Net Income	28.83M	29.98M	37.66M	21.18M	4.39M	-14.36M
Balance Sheet
Total Assets	845.35M	850.58M	766.44M	714.35M	716.76M	707.56M
Cash, Cash Equivalents and Short-Term Investments	65.24M	84.52M	125.74M	134.08M	133.45M	107.39M
Total Debt	162.58M	168.52M	142.51M	46.68M	129.74M	44.51M
Total Liabilities	446.19M	460.79M	398.02M	386.94M	379.32M	387.64M
Stockholders Equity	357.55M	349.57M	344.46M	311.65M	321.03M	303.22M
Cash Flow
Free Cash Flow	-32.84M	-34.68M	-1.77M	27.54M	18.37M	40.86M
Operating Cash Flow	17.41M	9.78M	19.91M	48.02M	28.27M	57.43M
Investing Cash Flow	-64.67M	-77.93M	-28.64M	-32.74M	2.96M	-23.76M
Financing Cash Flow	3.37M	17.36M	6.80M	-1.58M	-3.12M	-19.83M

China Automotive Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAAS, the sentiment is Positive. The current price of 4.18 is below the 20-day moving average (MA) of 4.22, above the 50-day MA of 4.11, and below the 200-day MA of 4.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 30.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAAS.

China Automotive Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	78 Outperform	$291.68M	14.14	9.91%	―	5.54%	398.82%
CAAS	68 Neutral	$126.11M	4.38	8.05%	―	18.33%	-26.25%
MPAA	65 Neutral	$240.81M	―	-7.17%	―	5.53%	60.54%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
SRI	58 Neutral	$221.93M	―	-6.63%	―	-8.90%	-346.80%
INVZ	54 Neutral	$286.51M	―	-65.19%	―	28.52%	41.32%
SSUP	41 Neutral	$4.57M	―	-80.07%	―	-3.63%	36.19%

China Automotive Systems Corporate Events

China Automotive Systems Announces Cayman Islands Merger

On June 26, 2025, China Automotive Systems, Inc. announced a merger agreement with its subsidiary, China Automotive Systems Holdings, Inc., to redomicile in the Cayman Islands. The merger aims to streamline operations by having CAAS Cayman assume all rights and obligations of the parent company, with no interruption in business activities. The merger is subject to customary closing conditions, including shareholder and regulatory approvals, and is expected to be completed in the third quarter of 2025.

China Automotive Systems Holds Annual Stockholders Meeting

On June 25, 2025, China Automotive Systems, Inc. held its annual stockholders meeting in Jingzhou City, Hubei Province, where 82.64% of the company’s common stock was represented. Key outcomes included the election of five directors, approval of executive compensation programs, extension of the stock option plan to 2035, and the appointment of PricewaterhouseCoopers Zhong Tian LLP as independent auditors, reflecting the company’s strategic focus on governance and long-term planning.