Quality Investor

China Automotive Systems, Inc.

Rank #414Capital Return

CAAS · Nasdaq · Consumer Cyclical

China Automotive Systems, Inc. (CAAS) — Rank #414 by gross profitability (GP/assets 0.15) · ROE 10.7% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0002037400 · all metrics point-in-time as of the filing date.

About

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally.

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The company produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. It also provides automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, the company offers after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. It primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc.

is headquartered in Jingzhou, the People's Republic of China.

Industry
Auto Parts
Sector
Consumer Cyclical
State
E9
Filer Category
Non-accelerated filer
Fiscal Year End
December 31

Price History

CAAS+79.3% · +12.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$160.36M

P/E (annual)

3.7

P/S (annual)

0.2

P/B

0.4

P/OCF (annual)

1.4

Shareholder Yield

1.4%

Employees

4,812

Industry

Auto Parts

Exchange

Nasdaq

Signal Flags

2 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.15
Return on equity
10.7%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.22
Current ratio
1.36×
Net cash
$162.10M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue

Growth

2/2 pass
Revenue growth
17.6%
Piotroski F-Score
7 / 9
Share dilution
-0.0%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-27.1%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -0.0% — per-share value needs a total required return of -27.2% once share-count change is priced in.

vs. own 6-year median revenue growth: 17.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-29.2%

r = 10% (base)

-27.1%

r = 12%

-25.3%

Net debt / market cap: -101.1%

Base FCF: $74.4M3Y mean FCF: $74.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

3.2xCheap
3.2xmed 3.6x4.6x

P / S

Price / revenue per share

0.2xCheap
0.2xmed 0.2x0.2x

P / B

Price / book value per share

0.3xCheap
0.3xmed 0.4x0.4x

P / GP

Price / gross profit per share

0.9xCheap
0.9xmed 1.3x1.3x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.15

Primary signal (Novy-Marx).

12th of 12 SIC 3714 peers

Return on equity

10.7%

Gross margin

19.0%

8th of 12 SIC 3714 peers

Revenue growth (YoY)

17.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.22

5th of 11 SIC 3714 peers (best = lowest)

Current ratio

1.36×

10th of 12 SIC 3714 peers

Quick ratio

Net cash

$162.10M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$74.44M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.74

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Dividend safety

Composite score

3.5 / 5

Good
Payout ratio
5.1%5/5 Strong
FCF coverage
33.99×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 1.22 · IC 31.51×4/5 Strong

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20232025
Capital Return