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CAASChina Automotive Systems, Inc.
$4.45$134M
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  4. Financial Ratios

China Automotive Systems, Inc. (CAAS) Financial Ratios

Latest Ratios: P/E Ratio 3.1x · EV/EBITDA 2.7x · ROE 10.2%. (2000–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

CAAS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$134M$129M$124M$98M$178M$83M$194M$99M$77M$152M$171M
Enterprise Value$202M$196M$235M$125M$103M$81M$141M$147M$52M$244M$261M
P/E Ratio →3.133.004.142.588.4119.14—14.3232.49—7.66
P/S Ratio0.180.170.190.170.340.170.460.230.160.300.37
P/B Ratio0.300.290.320.260.540.250.610.320.250.500.56
P/FCF1.881.80——6.454.504.75——6.65—
P/OCF1.201.1512.664.903.702.923.383.276.163.0314.49

P/E links to full P/E history page with 30-year chart

CAAS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.260.360.220.190.160.340.340.110.490.56
EV / EBITDA2.732.663.892.163.122.4710.156.093.757.197.06
EV / EBIT3.393.105.122.554.218.21—26.38122.0410.809.96
EV / FCF—2.75——3.754.403.46——10.68—

CAAS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin19.0%19.0%16.8%18.0%15.7%14.5%13.3%14.4%13.2%17.0%17.5%
Operating Margin7.8%7.8%6.2%6.8%1.5%1.1%-2.0%1.4%-0.6%3.9%5.0%
Net Profit Margin5.6%5.6%4.6%6.5%4.0%2.2%-1.2%2.3%0.5%-3.9%4.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE10.2%10.2%7.9%10.8%6.4%3.4%-1.6%3.2%0.8%-6.3%7.3%
ROA4.6%4.6%3.7%5.1%3.0%1.6%-0.7%1.5%0.3%-2.9%3.6%
ROIC8.8%8.8%6.7%9.1%2.0%1.4%-2.0%1.5%-0.6%3.6%4.6%
ROCE13.9%13.9%10.4%10.7%2.2%1.5%-2.3%1.8%-0.8%5.9%7.5%

CAAS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.460.460.430.390.140.380.140.400.200.510.39
Debt / EBITDA2.842.842.792.461.413.983.205.164.414.623.26
Net Debt / Equity—0.150.290.08-0.23-0.01-0.160.15-0.080.300.29
Net Debt / EBITDA0.910.911.840.48-2.25-0.06-3.791.97-1.812.722.42
Debt / FCF—0.95——-2.71-0.11-1.29——4.04—
Interest Coverage37.0837.0825.3439.9216.896.84-5.681.630.1210.1220.69

CAAS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.361.361.321.471.431.431.341.451.451.431.50
Quick Ratio1.131.131.071.181.121.091.091.181.191.211.29
Cash Ratio0.330.330.190.330.370.380.300.270.300.250.19
Asset Turnover—0.760.770.750.740.690.590.650.720.700.73
Inventory Turnover4.994.994.814.203.983.664.104.454.895.235.60
Days Sales Outstanding—173.46193.85170.61154.62154.16204.63197.13188.58215.08242.29

CAAS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.6%1.7%18.1%———0.0%———0.3%
Payout Ratio5.1%5.1%74.8%———————2.4%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield31.9%33.3%24.1%38.7%11.9%5.2%—7.0%3.1%—13.1%
FCF Yield53.1%55.5%——15.5%22.2%21.1%——15.0%—
Buyback Yield0.0%0.0%0.1%0.0%1.4%0.0%1.5%1.3%0.4%0.0%1.1%
Total Shareholder Yield1.6%1.7%18.2%0.0%1.4%0.0%1.6%1.3%0.4%0.0%1.4%
Shares Outstanding—$30M$30M$30M$31M$31M$31M$31M$32M$32M$32M

Key Metrics

Growth RegimeExpanding
ProfitabilityModerate
Balance SheetFortress
Cash FlowMixed
Top Statement Risk

Cyclical OEM demand volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2025Q2)

Deep Discount Reflects Structural Skepticism

According to current market data, CAAS trades at a P/E of 3.13 and a P/S of 0.17, suggesting that investors are heavily discounting the company's earnings potential compared to peers like Dorman Products, which commands a significantly higher valuation multiple despite similar cyclical exposure.

The valuation gap appears to stem from a market-wide skepticism regarding the quality of earnings and the sustainability of growth in the Chinese automotive sector. Investors should monitor whether this low multiple represents a value opportunity or a permanent discount due to the company's small-cap status and geographic concentration.

Capital Efficiency Remains Subdued Historically

Based on reported figures, CAAS has struggled to generate meaningful returns, with ROIC hovering between 1.3% and 3.0% over the last ten quarters, which indicates that the company is failing to compound capital effectively compared to the double-digit returns seen in more mature automotive parts suppliers.

The low ROIC suggests that the company's heavy investment in manufacturing infrastructure and R&D for EPS technology has yet to yield a competitive return on invested capital. This trend warrants further investigation into whether the current asset base is over-capitalized relative to the actual volume of profitable steering system contracts.

Working Capital Cycles Impede Cash

As reported in financial statements, the company's cash conversion cycle has remained elevated, reaching 118 days in 2025Q2, which reflects significant inefficiencies in managing inventory and receivables compared to the leaner operational standards observed in global Tier-1 automotive component manufacturers.

The extended DSO and DIO figures suggest that CAAS lacks the leverage to dictate favorable payment terms to its large OEM customers, effectively forcing the company to act as a financier for its clients. This working capital burden appears to be a structural drag on free cash flow generation.

Fortress Balance Sheet Provides Buffer

According to recent SEC filings, CAAS maintains a current ratio of 1.40 and a debt-to-equity ratio of 0.38, which indicates a robust liquidity position that provides a necessary safety buffer against the inherent volatility of the Chinese automotive production cycle and potential supply chain disruptions.

The company's ability to maintain such low leverage in a capital-intensive industry is a notable strength, though it may also suggest an overly conservative capital allocation strategy. Investors should consider whether this liquidity is being deployed efficiently or if it is simply sitting idle, failing to drive shareholder value.

P/E Ratio Obscures Cash Reality

The P/E ratio is the most commonly misapplied metric for CAAS, as it fails to account for the company's significant cash-to-market-cap ratio, which effectively masks the true liquidation value of the business and ignores the potential for capital return or strategic reinvestment.

Analysts should prioritize EV/EBITDA or P/FCF over P/E to better understand the company's operational earning power, as the P/E ratio is heavily distorted by the large cash balance and non-operating income. Relying on P/E alone risks misinterpreting the company's valuation by ignoring the underlying asset-heavy nature of its manufacturing operations.

Download Financial Ratios Data

Includes 30+ ratios · 26 years · Updated daily

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CAAS — Frequently Asked Questions

Quick answers to the most common questions about buying CAAS stock.

What is China Automotive Systems, Inc.'s P/E ratio?

China Automotive Systems, Inc.'s current P/E ratio is 3.1x. The historical average is 20.1x. This places it at the 10th percentile of its historical range.

What is China Automotive Systems, Inc.'s EV/EBITDA?

China Automotive Systems, Inc.'s current EV/EBITDA is 2.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.6x.

What is China Automotive Systems, Inc.'s ROE?

China Automotive Systems, Inc.'s return on equity (ROE) is 10.2%. The historical average is 8.6%.

Is CAAS stock overvalued?

Based on historical data, China Automotive Systems, Inc. is trading at a P/E of 3.1x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is China Automotive Systems, Inc.'s dividend yield?

China Automotive Systems, Inc.'s current dividend yield is 1.63% with a payout ratio of 5.1%.

What are China Automotive Systems, Inc.'s profit margins?

China Automotive Systems, Inc. has 19.0% gross margin and 7.8% operating margin.

How much debt does China Automotive Systems, Inc. have?

China Automotive Systems, Inc.'s Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.