China Story

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CAAS -- USA Stock  

USD 2.95  0.06  1.99%

Even with relatively weak basic indicators, China Automotive may actually be approaching a critical reversion point that can send shares even higher in September 2020. We currently estimate China Automotive as undervalued. The real value is approaching 3.16 per share.
Published over a month ago
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Does China Automotive (NASDAQ:CAAS) have invariable basic indicators based on the latest spike?
We provide trade advice to complement the prevailing expert consensus on China Automotive Sys. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. The company dividends can provide a clue to the current value of the stock. This firm is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include China Automotive income statement, its balance sheet, and the statement of cash flows. Potential China Automotive investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although China Automotive investors may use each financial statement separately, they are all related. The changes in China Automotive's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on China Automotive's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of China Automotive fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of China Automotive performance into the future periods or doing a reasonable stock valuation. The intrinsic value of China Automotive shares is the value that is considered the true value of the share. If the intrinsic value China is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares China Automotive. Please read more on our fundamental analysis page.

What is China Asset Breakdown?

China Automotive Systems reports assets on its Balance Sheet. It represents the amount of China resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect China volatility, please check the breakdown of all its fundamentals

Are China Automotive Earnings Expected to grow?

The future earnings power of China Automotive involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of China Automotive factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. China Automotive stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of China expected earnings.

China Automotive Gross Profit

China Automotive Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing China Automotive previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show China Automotive Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Breaking down China Automotive Indicators

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of China Automotive is not uncomon. There are few distinct groups of China Automotive stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of China is distributed among investors.

Ownership Allocation

China Automotive Sys retains a total of 32.34 Million outstanding shares. China Automotive Systems shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company outstanding shares. 62.87 percent of China Automotive Sys outstanding shares that are owned by insiders signifies that they have been buying or selling the stock in recent months in anticipation of some upcoming event. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
34.07%
Insiders
62.87%
Retail Investors34.07
Insiders62.87
Institutions3.06
 2017 2018 2019 2020 (projected)
Interest Expense1.75 M2.93 M3.03 M2.79 M
Gross Profit84.63 M65.41 M63.35 M75.67 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. China Automotive has an asset utilization ratio of 65.13 percent. This connotes that the company is making $0.65 for each dollar of assets. An increasing asset utilization means that China Automotive Systems is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
481 M
Assets Non Current
191.3 M
Current Assets480.97 Million68.82
Assets Non Current191.33 Million27.38
Goodwill11.16 Million1.6
Tax Assets15.4 Million2.2

Over 3 percent spike for China Automotive. What does it mean for retail investors?

The risk adjusted performance is down to 0.24 as of today. China Automotive Systems is displaying above-average volatility over the selected time horizon. Investors should scrutinize China Automotive Systems independently to ensure intended market timing strategies are aligned with expectations about China Automotive volatility.

Our Bottom Line On China Automotive Sys

While other companies within the auto parts industry are still a little expensive, even after the recent corrections, China Automotive may offer a potential longer-term growth to retail investors. On the whole, as of the 14th of August 2020, we believe that at this point, China Automotive is undervalued with below average chance of bankruptcy within the next 2 years. Our current 'Buy-Sell' recommendation on the enterprise is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of China Automotive Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

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