Education
About Us
Working with TipRanks
Follow Us
China Automotive Systems (CAAS)
NASDAQ:CAAS
RESEARCH TOOLSreports
Top Page
China Automotive Systems
(NASDAQ:CAAS)
Rating:69Neutral
Price Target:
$4.50
▲(4.17%Upside)
China Automotive Systems (CAAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$129.73M
Dividend YieldN/A
Average Volume (3M)23.45K
Price to Earnings (P/E)4.6
Beta (1Y)0.62
Revenue Growth18.33%
EPS Growth-26.25%
CountryUS
Employees4,370
SectorConsumer Cyclical
Sector Strength57
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.24
Shares Outstanding30,170,702
10 Day Avg. Volume22,942
30 Day Avg. Volume23,450
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.34
Price to Sales (P/S)0.00
P/FCF Ratio-17.67
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue0.06
Enterprise Value/Gross Profit1.29
Enterprise Value/Ebitda0.53
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., 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 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 Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 4.85%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented strong revenue growth, particularly in the EPS segment and Brazilian market, alongside significant advancements in product development. However, these positive aspects were counterbalanced by declines in North American sales and increased operating expenses leading to a reduction in net income.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Net sales increased by 19.9% to $157.1 million in the first quarter of 2025 compared to $139.4 million in the first quarter of 2024.
EPS Segment Performance
Net sales of electric power steering systems (EPS) increased by 54% year-over-year to $73 million, representing 43.7% of total sales.
Expansion in Brazilian Market
Sales to the Brazilian market increased by 30.2% year-over-year due to higher demand by Stellantis.
R-EPS Product Development
The R-EPS steering product entered mass production, featuring advanced autonomous driving functions.
Strategic Awards
Shanshi Zhulong subsidiary received multiple awards for product development cooperation and supply chain reliability.
Increased Cash Flow
Net cash provided by operating activities rose 73.1% year-over-year to $18.1 million for the first quarter of 2025.
Negative Updates
Decline in North American Sales
North American sales declined by 10.3% year-over-year to $27.2 million, primarily due to lower sales to Stellantis.
Increased Operating Expenses
A 41.3% increase in operating expenses, including a 64% rise in R&D expenses, led to a 10.5% year-over-year reduction in income from operations.
Decreased Net Income
Net income attributable to parent companies' common shareholders decreased to $7.1 million from $8.2 million in the first quarter of 2024.
Higher Income Tax Expense
Income tax expense was $2.9 million for the first quarter of 2025, compared to $1.7 million for the first quarter of 2024.
Company Guidance
During the first quarter of 2025, China Automotive Systems reported a significant growth in net sales, increasing by 19.9% to $157.1 million compared to the previous year. This growth was driven by a 54% increase in sales of electric power steering systems (EPS), along with a 38.2% rise in EPS sales at their Henlong KYB subsidiary. Despite a 10.3% decline in North American sales, primarily due to reduced demand from Stellantis, the company experienced a 30.2% boost in sales in the Brazilian market. Chinese GDP grew by 5.4% year-over-year, and the automotive market saw a 47.1% increase in new energy vehicle sales. Gross profit for the company rose by 18.8% to $28.6 million, while R&D expenses surged by 64% to $8.7 million, reflecting investments in product development. The company reiterated its revenue guidance for fiscal year 2025 at $700 million, supported by advancements in autonomous driving technologies and a robust product portfolio.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.75
Positive
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.70
Positive
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.60
Neutral
| 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 | EBIT |
| 39.24M | 40.26M | 39.24M | 7.95M | 11.30M | -10.61M | EBITDA |
| 66.78M | 66.51M | 68.18M | 49.99M | 37.34M | 11.72M | Net Income Common Stockholders |
| 28.83M | 29.98M | 37.66M | 21.18M | 4.39M | -14.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 65.24M | 84.52M | 125.74M | 134.08M | 133.45M | 107.39M | Total Assets |
| 845.35M | 850.58M | 766.44M | 714.35M | 716.76M | 707.56M | Total Debt |
| 162.58M | 168.52M | 142.51M | 46.68M | 129.74M | 44.51M | Net Debt |
| 97.34M | 111.56M | 27.85M | -74.54M | -1.96M | -52.74M | 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
Positive
4.32
Price Trends
3.98
Positive
4.18
Positive
4.16
Positive
Market Momentum
0.07
Negative
62.45
Neutral
80.44
Negative
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 4.32 is above the 20-day moving average (MA) of 4.16, above the 50-day MA of 3.98, and above the 200-day MA of 4.16, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.45 is Neutral, neither overbought nor oversold. The STOCH value of 80.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $247.25M | 11.71 | 9.91% | ― | 5.54% | 398.82% | |
69 Neutral | $129.73M | 4.61 | 8.05% | ― | 18.33% | -26.25% | |
63 Neutral | $210.88M | ― | -7.17% | ― | 4.26% | 64.64% | |
62 Neutral | $6.90B | 11.05 | 2.80% | 4.27% | 2.67% | -24.92% | |
58 Neutral | $173.76M | ― | -6.63% | ― | -8.90% | -346.80% | |
56 Neutral | $191.20M | ― | -65.19% | ― | 28.52% | 41.32% | |
40 Underperform | $12.89M | ― | -80.07% | ― | -3.63% | 36.19% |
* Consumer Cyclical Sector Average
Performance Comparison
CAAS
China Automotive Systems
4.32
1.09
33.75%
MPAA
Motorcar Parts Of America
10.71
4.62
75.86%
SRI
Stoneridge
5.68
-10.25
-64.34%
STRT
Strattec Security
57.96
32.67
129.18%
SUP
Superior Industries International
0.32
-3.06
-90.53%
INVZ
Innoviz Technologies
0.92
-0.04
-4.17%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.