China Automotive Systems (CAAS)
NASDAQ:CAAS
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China Automotive Systems
(NASDAQ:CAAS)
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Rating:73Outperform
Price Target:
$5.00
▲(10.62% Upside)
Action:UpgradedDate:01/13/26
The score is driven by solid underlying financial performance with stable margins and manageable leverage, partially offset by negative free cash flow. Technicals are supportive with price above key moving averages and positive MACD. Valuation is a key positive given the very low P/E.
Positive Factors
Revenue Growth
Consistent revenue growth, particularly in electric power steering systems, indicates strong market demand and effective product strategy.
Negative Factors
Decreased Profit Margin
A decrease in gross profit margin due to tariffs and product mix shifts could pressure profitability, affecting long-term financial health.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue growth, particularly in electric power steering systems, indicates strong market demand and effective product strategy.
Read all positive factors
China Automotive Systems (CAAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$127.32M
Dividend YieldN/A
Average Volume (3M)46.14K
Price to Earnings (P/E)3.7
Beta (1Y)0.63
Revenue Growth16.72%
EPS Growth5.35%
CountryUS
Employees4,370
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.32
Shares Outstanding30,170,702
10 Day Avg. Volume24,916
30 Day Avg. Volume46,142
Financial Highlights & Ratios
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 Cap0.23
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.26
Enterprise Value/Ebitda0.44
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
China Automotive Systems generates revenue primarily through the sale of its automotive components, particularly power steering systems, to original equipment manufacturers (OEMs) and aftermarket customers. The company has established significant ...
China Automotive Systems Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlights significant revenue growth, especially in the EPS segment and international markets, alongside strategic moves like new product launches. However, challenges such as decreased gross profit margin and increased tax expenses present concerns. The overall sentiment is balanced with positive growth tempered by operational challenges.Positive Updates
Revenue Growth
Sales increased by 11.1% year-over-year to $176.2 million in Q2 2025, with significant growth in electric power steering systems (EPS), which rose by 31.1% year-over-year.
Negative Updates
Decreased Gross Profit Margin
Gross profit margin decreased to 17.3% in Q2 2025 from 18.5% in Q2 2024, mainly due to increased tariffs and a shift to lower-margin products.
Read all updates
Q2-2025 Updates
Positive
Negative
Revenue Growth
Sales increased by 11.1% year-over-year to $176.2 million in Q2 2025, with significant growth in electric power steering systems (EPS), which rose by 31.1% year-over-year.
Read all positive updates
Company Guidance
In the second quarter of 2025, China Automotive Systems reported a strong financial performance with sales increasing by 11.1% year-over-year to $176.2 million, driven by a significant 31.1% rise in electric power steering systems (EPS) sales. The company's gross profit grew by 4.2% to $30.5 million, although the gross profit margin slightly decreased to 17.3% due to changes in product mix and increased tariffs. Operating expenses were well managed, with a notable decrease in general and administrative expenses by $2 million, which contributed to a 20.2% rise in income from operations. Net income attributable to shareholders increased to $7.6 million, translating to earnings per share of $0.25. The company also highlighted robust growth in international markets, with North and South American sales accounting for 27.5% of total sales, thanks to increased demand in Brazil and North America. Looking forward, management has raised the full fiscal year 2025 revenue guidance to $720 million, reflecting optimism based on current market conditions and strategic investments in R&D, particularly in EV-related products.China Automotive Systems Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| 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 | 68.60M | 66.17M | 68.18M | 49.66M | 36.95M | 11.45M |
| Net Income | 29.32M | 29.98M | 37.66M | 21.18M | 11.05M | -4.98M |
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
Negative
4.52
Price Trends
4.44
Negative
4.34
Negative
4.33
Negative
Market Momentum
-0.07
Positive
39.61
Neutral
38.06
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 4.52 is above the 20-day moving average (MA) of 4.29, above the 50-day MA of 4.44, and above the 200-day MA of 4.33, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 38.06 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $127.32M | 3.67 | 9.22% | ― | 16.72% | 5.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $101.57M | ― | -72.75% | ― | -19.11% | 73.51% | |
53 Neutral | $790.83M | 10.25 | 11.76% | 3.32% | 23.96% | 11.01% | |
50 Neutral | $134.46M | -2.14 | -16.59% | ― | -23.26% | -259.03% | |
50 Neutral | $79.11M | 27.75 | -14.00% | ― | 3.21% | -6985.88% | |
46 Neutral | $158.30M | -1.57 | -43.54% | ― | -4.91% | -331.53% |
* Consumer Cyclical Sector Average
CAAS
China Automotive Systems
4.22
-0.51
-10.78%
CVGI
Commercial Vehicle Group
3.67
2.28
164.03%
KNDI
Kandi Technologies
0.92
-0.52
-36.11%
SMP
Standard Motor Products
35.71
10.86
43.70%
SRI
Stoneridge
5.65
0.46
8.86%
LIDR
AEye Inc
2.17
1.53
239.06%
China Automotive Systems Corporate Events
China Automotive Systems Reports Strong Q3 2025 Growth and Strategic Developments
Nov 12, 2025
On November 12, 2025, China Automotive Systems announced a 77.8% growth in earnings per share for the third quarter of 2025, alongside a 17.7% increase in net sales year-over-year. The company has seen significant growth in international sales, pa...
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.