China Story

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CAAS -- USA Stock  

USD 4.22  0.14  3.21%

Whilst many millenniums are getting more into consumer cyclical space, it makes sense to sum up China Automotive Sys. We are going to cover the possibilities of making China Automotive into your portfolio. Is the firm valuation justified? I am going to cover China Automotive Sys perspective on valuation to give you a better outlook on taking a position in it.
Published over two weeks ago
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Ready to invest in China Automotive now and exit it before the next press release?
China Automotive Sys currently holds 50.58 M in liabilities with Debt to Equity (D/E) ratio of 0.16, which may suggest China Automotive is not taking enough advantage from borrowing. The entity has a current ratio of 1.34, which is within standard range for the sector.
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.
We determine the current worth of China Automotive Sys using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of China Automotive Sys based exclusively on its fundamental and basic technical indicators. By analyzing China Automotive's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of China Automotive's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of China Automotive. We calculate exposure to China Automotive's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to China Automotive's related companies.

China Automotive Sys Investment Alerts

China investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring China Automotive Sys performance across your portfolios.Please check all investment alerts for China

China Automotive Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare China value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across China Automotive competition to find correlations between indicators driving the intrinsic value of China.

How China utilizes its cash?

To perform a cash flow analysis of China Automotive, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash China Automotive is receiving and how much cash it distributes out in a given period. The China Automotive cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
China Automotive Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. China Automotive reported last year Net Cash Flow from Operations of 57.43 Million

Breaking down China Automotive Indicators

The firm reported the previous year's revenue of 387.1 M. Net Loss for the year was (39 K) with profit before overhead, payroll, taxes, and interest of 62.02 M.

Margins Breakdown

China profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or China Automotive itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of China Automotive profit margins.
Profit Margin
EBITDA Margin0.0809
Gross Margin0.14
Profit Margin0.0213

China Automotive Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. China Automotive Earnings before Tax is decreasing over the last 8 years. The previous year's value of China Automotive Earnings before Tax was 9,740,250. Additionally, China Automotive Average Equity is relatively stable at the moment. China Automotive Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The latest value of China Automotive Earnings Before Interest Taxes and Depreciation Amortization USD is 34,256,706. China Automotive Earnings before Tax is decreasing over the last 8 years. Additionally, China Automotive Average Equity is increasing over the last 8 years. The latest value of China Automotive Average Equity is 313,608,584.

China Automotive has 95 percent chance to stay above $4.95 in 2 months

Latest coefficient of variation is at -1012.21.
As of the 30th of March, China Automotive shows the risk adjusted performance of (0.08), and Mean Deviation of 3.26. China Automotive Sys technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for China Automotive Sys, which can be compared to its rivals. Please confirm China Automotive Sys variance, as well as the relationship between the maximum drawdown and semi variance to decide if China Automotive Sys is priced correctly, providing market reflects its regular price of 4.85 per share. Given that China Automotive has jensen alpha of (0.50), we suggest you to validate China Automotive Sys's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While other entities in the auto parts industry are either recovering or due for a correction, China Automotive may not be performing as strong as the other in terms of long-term growth potentials. While some retail investors may not share our view we believe it may be a good time to drop China as the risk-reward trade off is not appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to China Automotive.

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 Ellen Johnson do not own shares of China Automotive Sys. Please refer to our Terms of Use for any information regarding our disclosure principles.

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