The company's average rating is Strong Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on China Automotive market sentiment investors' perception of the future value of China. Let us look at a few aspects of China technical analysis. The company has Profit Margin (PM) of
1.54 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of
0.04 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.0.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of China Automotive Systems. In general, sophisticated investors focus on analyzing China Automotive stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build China Automotive's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
China Automotive's intrinsic value. In addition to deriving basic predictive indicators for China Automotive, many experienced traders also check how macroeconomic factors affect China Automotive price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of China Automotive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as China Automotive. Your research has to be compared to or analyzed against China Automotive's peers to derive any actionable benefits. When done correctly, China Automotive's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in China Automotive Systems.
How important is China Automotive's Liquidity
China Automotive
financial leverage refers to using borrowed capital as a funding source to finance China Automotive Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. China Automotive financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to China Automotive's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of China Automotive's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between China Automotive's total debt and its cash.
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 China Automotive's
gross profit and other
fundamental indicators for more details.
Closer look at China Automotive Semi Variance
China Automotive Sys has current Semi Variance of 5.82. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 5.82 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare China Automotive Semi Variance to its closest peers:
| CAAS | 5.823547842670382 |
| AAPL | 5.05 |
| CPS | 46.63 |
| JPM | 2.47 |
| GE | 3.96 |
Our take on today China Automotive spike
Latest Jensen Alpha is up to 0.06. Price may fall again. China Automotive Sys currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.06. However, we advise investors to further question China Automotive Sys expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Automotive's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Automotive's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
China Automotive Implied Volatility
Our Final Take On China Automotive
While some firms 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. To conclude, as of the 12th of August 2022, our current 90 days 'Buy-Sell' recommendation on the enterprise is
Hold. We believe China Automotive is
undervalued with
close to average probability of financial unrest for the next two years.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of China Automotive Systems. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com