Is China Automotive Stock a Good Investment?
China Automotive Investment Advice | CAAS |
- Examine China Automotive's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research China Automotive's leadership team and their track record. Good management can help China Automotive navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Parts & Equipment space and any emerging trends that could impact China Automotive's business and its evolving consumer preferences.
- Compare China Automotive's performance and market position to its competitors. Analyze how China Automotive is positioned in terms of product offerings, innovation, and market share.
- Check if China Automotive pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about China Automotive's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in China Automotive Systems stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if China Automotive Systems is a good investment.
Sell | Buy |
Strong Hold
Market Performance | OK | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine China Automotive Stock
Researching China Automotive's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 65.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.39. Some equities with similar Price to Book (P/B) outperform the market in the long run. China Automotive Systems has Price/Earnings To Growth (PEG) ratio of 0.61. The entity last dividend was issued on the 30th of July 2024. The firm had 7:2 split on the 5th of March 2003.
To determine if China Automotive is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding China Automotive's research are outlined below:
China Automotive had very high historical volatility over the last 90 days | |
About 65.0% of the company shares are held by company insiders | |
Latest headline from finance.yahoo.com: eNovate, Mastercard partner to launch CaaS solution in Egypt |
China Automotive Quarterly Liabilities And Stockholders Equity |
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China Automotive uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in China Automotive Systems. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to China Automotive's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
4th of April 2024 Upcoming Quarterly Report | View | |
31st of December 2023 Next Fiscal Quarter End | View |
Earnings surprises can significantly impact China Automotive's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises China Automotive's investors have experienced.
Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
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2008-11-12 | 2008-09-30 | 0.1 | 0.09 | -0.01 | 10 | ||
2019-12-31 | 2019-12-31 | 0.04 | 0.06 | 0.02 | 50 | ||
2018-11-09 | 2018-09-30 | -0.01 | 0.01 | 0.02 | 200 | ||
2012-05-09 | 2012-03-31 | 0.14 | 0.12 | -0.02 | 14 | ||
2021-08-12 | 2021-06-30 | 0.07 | 0.1 | 0.03 | 42 | ||
2021-03-30 | 2020-12-31 | 0.01 | 0.04 | 0.03 | 300 | ||
2019-05-09 | 2019-03-31 | 0.02 | 0.05 | 0.03 | 150 | ||
2016-08-11 | 2016-06-30 | 0.2 | 0.17 | -0.03 | 15 |
Know China Automotive's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as China Automotive is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading China Automotive Systems backward and forwards among themselves. China Automotive's institutional investor refers to the entity that pools money to purchase China Automotive's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares | Two Sigma Investments Llc | 2024-06-30 | 18.3 K | Hanson Investment Management | 2024-09-30 | 16.7 K | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 11.7 K | American Century Companies Inc | 2024-09-30 | 10.1 K | Simplex Trading, Llc | 2024-06-30 | 4.5 K | Royal Bank Of Canada | 2024-06-30 | 4 K | Ubs Group Ag | 2024-06-30 | 3.8 K | Crédit Agricole S.a. | 2024-06-30 | 2.7 K | Jpmorgan Chase & Co | 2024-06-30 | 1.4 K | Renaissance Technologies Corp | 2024-09-30 | 401.9 K | Bridgeway Capital Management, Llc | 2024-06-30 | 276.1 K |
China Automotive's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 135.53 M.Market Cap |
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China Automotive's profitablity analysis
Last Reported | Projected for Next Year | ||
Return On Tangible Assets | 0.05 | 0.05 | |
Return On Capital Employed | 0.10 | 0.10 | |
Return On Assets | 0.05 | 0.05 | |
Return On Equity | 0.11 | 0.10 |
Determining China Automotive's profitability involves analyzing its financial statements and using various financial metrics to determine if China Automotive is a good buy. For example, gross profit margin measures China Automotive's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of China Automotive's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in China Automotive's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of China Automotive Systems. Check China Automotive's Beneish M Score to see the likelihood of China Automotive's management manipulating its earnings.
Evaluate China Automotive's management efficiency
China Automotive Systems has return on total asset (ROA) of 0.0376 % which means that it generated a profit of $0.0376 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.113 %, meaning that it created $0.113 on every $100 dollars invested by stockholders. China Automotive's management efficiency ratios could be used to measure how well China Automotive manages its routine affairs as well as how well it operates its assets and liabilities. At this time, China Automotive's Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.05 in 2024, whereas Return On Capital Employed is likely to drop 0.1 in 2024. At this time, China Automotive's Asset Turnover is comparatively stable compared to the past year.Last Reported | Projected for Next Year | ||
Book Value Per Share | 12.21 | 12.82 | |
Tangible Book Value Per Share | 11.77 | 12.36 | |
Enterprise Value Over EBITDA | 1.84 | 1.75 | |
Price Book Value Ratio | 0.28 | 0.27 | |
Enterprise Value Multiple | 1.84 | 1.75 | |
Price Fair Value | 0.28 | 0.27 | |
Enterprise Value | 125.3 M | 214.9 M |
Evaluating the management effectiveness of China Automotive allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The China Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Forward Dividend Yield 0.1649 | Beta 2.448 |
Basic technical analysis of China Stock
As of the 23rd of November, China Automotive shows the Downside Deviation of 2.43, risk adjusted performance of 0.0807, and Mean Deviation of 2.07. China Automotive Systems 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. Please confirm China Automotive Systems variance, as well as the relationship between the maximum drawdown and semi variance to decide if China Automotive Systems is priced correctly, providing market reflects its regular price of 4.36 per share. Given that China Automotive has jensen alpha of 0.2366, we suggest you to validate China Automotive Systems's prevailing market performance to make sure the company can sustain itself at a future point.China Automotive's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific China Automotive insiders, such as employees or executives, is commonly permitted as long as it does not rely on China Automotive's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases China Automotive insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Yu Shengbin over a month ago Acquisition by Yu Shengbin of 600 shares of China Automotive at 4.11 subject to Rule 16b-3 | ||
Jie Li over three months ago Acquisition by Jie Li of 5125 shares of China Automotive at 1.85 subject to Rule 16b-3 | ||
Hanlin Chen over three months ago Acquisition by Hanlin Chen of 2440000 shares of China Automotive subject to Rule 16b-3 | ||
Jie Li over three months ago Acquisition by Jie Li of 2500 shares of China Automotive at 2.108 subject to Rule 16b-3 | ||
Wong Tse Yiu over six months ago Acquisition by Wong Tse Yiu of 300 shares of China Automotive at 4.13 subject to Rule 16b-3 | ||
Daming Hu over six months ago Disposition of 400 shares by Daming Hu of China Automotive at 9.21 subject to Rule 16b-3 | ||
Wong Tse Yiu over six months ago Acquisition by Wong Tse Yiu of 100 shares of China Automotive at 4.05 subject to Rule 16b-3 | ||
Jie Li over six months ago Acquisition by Jie Li of 6000 shares of China Automotive at 3.22 subject to Rule 16b-3 |
China Automotive's Outstanding Corporate Bonds
China Automotive issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. China Automotive Systems uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most China bonds can be classified according to their maturity, which is the date when China Automotive Systems has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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HSBC Holdings PLC Corp BondUS404280DR76 | View | |
MGM Resorts International Corp BondUS552953CD18 | View | |
AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand China Automotive's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing China Automotive's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
Risk Adjusted Performance | 0.0807 | |||
Market Risk Adjusted Performance | 0.5663 | |||
Mean Deviation | 2.07 | |||
Semi Deviation | 2.12 | |||
Downside Deviation | 2.43 | |||
Coefficient Of Variation | 1042.27 | |||
Standard Deviation | 3.11 | |||
Variance | 9.66 | |||
Information Ratio | 0.0607 | |||
Jensen Alpha | 0.2366 | |||
Total Risk Alpha | (0.12) | |||
Sortino Ratio | 0.0776 | |||
Treynor Ratio | 0.5563 | |||
Maximum Drawdown | 22.17 | |||
Value At Risk | (3.86) | |||
Potential Upside | 4.39 | |||
Downside Variance | 5.91 | |||
Semi Variance | 4.49 | |||
Expected Short fall | (2.49) | |||
Skewness | 1.74 | |||
Kurtosis | 7.59 |
Risk Adjusted Performance | 0.0807 | |||
Market Risk Adjusted Performance | 0.5663 | |||
Mean Deviation | 2.07 | |||
Semi Deviation | 2.12 | |||
Downside Deviation | 2.43 | |||
Coefficient Of Variation | 1042.27 | |||
Standard Deviation | 3.11 | |||
Variance | 9.66 | |||
Information Ratio | 0.0607 | |||
Jensen Alpha | 0.2366 | |||
Total Risk Alpha | (0.12) | |||
Sortino Ratio | 0.0776 | |||
Treynor Ratio | 0.5563 | |||
Maximum Drawdown | 22.17 | |||
Value At Risk | (3.86) | |||
Potential Upside | 4.39 | |||
Downside Variance | 5.91 | |||
Semi Variance | 4.49 | |||
Expected Short fall | (2.49) | |||
Skewness | 1.74 | |||
Kurtosis | 7.59 |
Consider China Automotive's intraday indicators
China Automotive intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of China Automotive stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
China Automotive Corporate Filings
10Q | 13th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 25th of September 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
9th of August 2024 Other Reports | ViewVerify | |
8th of August 2024 Other Reports | ViewVerify |
China Stock media impact
Far too much social signal, news, headlines, and media speculation about China Automotive that are available to investors today. That information is available publicly through China media outlets and privately through word of mouth or via China internal channels. However, regardless of the origin, that massive amount of China data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of China Automotive news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of China Automotive relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to China Automotive's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive China Automotive alpha.
China Automotive Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards China Automotive can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Additional Tools for China Stock Analysis
When running China Automotive's price analysis, check to measure China Automotive's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy China Automotive is operating at the current time. Most of China Automotive's value examination focuses on studying past and present price action to predict the probability of China Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Automotive's price. Additionally, you may evaluate how the addition of China Automotive to your portfolios can decrease your overall portfolio volatility.