Want to see CAAS full AI Analyst Report?
Top Page
China Automotive Systems
(NASDAQ:CAAS)
Select Model
Select Model
Rating:73Outperform
Price Target:
$5.50
▲(26.44% Upside)
Action:Upgraded
Date:08/18/26
The score is driven by very attractive valuation (low P/E) and a positive earnings-call outlook with raised guidance and strong H1 operating performance. These positives are balanced by only mid-tier financial quality due to rising debt and inconsistent historical free-cash-flow conversion, while technicals add a modestly supportive uptrend.
Positive Factors
Revenue Growth and Raised Guidance
Strong first-half growth and higher full-year guidance indicate improving scale and customer demand. Sustained expansion across major operating units can support manufacturing absorption, recurring OEM program revenue, and stronger earnings over the next several quarters.
Negative Factors
Rising Leverage
The substantial increase in debt reduces financial flexibility compared with prior years. If vehicle demand weakens or expansion projects take longer to generate returns, higher obligations could constrain investment capacity and increase sensitivity to operating volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Raised Guidance
Strong first-half growth and higher full-year guidance indicate improving scale and customer demand. Sustained expansion across major operating units can support manufacturing absorption, recurring OEM program revenue, and stronger earnings over the next several quarters.
Read all positive factors
China Automotive Systems (CAAS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$139.09M
Dividend YieldN/A
Average Volume (3M)46.14K
Price to Earnings (P/E)2.5
Beta (1Y)0.66
Revenue Growth17.64%
EPS Growth42.96%
CountryUS
Employees4,414
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.91
Shares Outstanding30,170,702
10 Day Avg. Volume24,916
30 Day Avg. Volume46,142
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.32
Price to Sales (P/S)0.17
P/FCF Ratio1.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China Automotive Systems Business Overview & Revenue Model
Company Description
China Automotive Systems, Inc. (CAAS) operates as a prominent manufacturer and supplier of diverse automotive systems and components, primarily through its subsidiary network within the People's Republic of China. The company's extensive product p...
How the Company Makes Money
CAAS makes money primarily by selling steering products and components to automotive OEM customers and, to a lesser extent, through sales into the automotive supply chain beyond initial vehicle assembly (e.g., components/parts sold through other c...
China Automotive Systems Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial improvements: double-digit revenue growth (+20.1%), large increases in gross profit (+49.7%), operating income (+100.4%), and EPS (+~98%), plus raised full-year guidance and continued investment in R&D and global expansion. These positives outweigh localized and macro headwinds—Brazil revenue decline, Chinese market weakness, forex-driven net finance expense, and elevated receivables/CapEx pressure—but management appears to be investing for future growth and has healthy liquidity and operating cash generation.Positive Updates
Strong Revenue Growth
Net sales increased 20.1% year-over-year to a six-month record of $412.5 million (H1 2026 vs H1 2025). Management raised full-year 2026 revenue guidance to $850 million from $810 million.
Negative Updates
Regional Weakness — Brazil Decline
Net sales in Brazil declined 5.1% year-over-year to $32.6 million, reflecting regional challenges and offsetting some global gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Net sales increased 20.1% year-over-year to a six-month record of $412.5 million (H1 2026 vs H1 2025). Management raised full-year 2026 revenue guidance to $850 million from $810 million.
Read all positive updates
Company Guidance
Management raised full-year 2026 revenue guidance to $850.0 million (up from $810.0 million), supported by H1 results of $412.5 million in net sales and $88.5 million gross profit, and by planned product rollouts and capacity additions: an expected annual EPS sales volume of 300,000 units for new European models, a South America EPS program slated to start batch production in 2028 that management projects will add about $40.0 million in revenue (roughly a 50% increase to the region’s run rate), roughly 1.0 million units of incremental capacity coming online, and continued investment with H1 CapEx of $30.4 million (including $15.8 million for the Mexico project) and full-year CapEx expected near $50.0 million; financial flexibility is bolstered by $155.6 million in cash and pledged cash (~$5.16/share), $47.8 million net cash from operations in H1, $14.3 million free cash flow in H1, and nearly $249.8 million in working capital.China Automotive Systems Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 834.86M | 765.74M | 650.93M | 576.35M | 529.55M | 497.99M |
| Gross Profit | 174.84M | 145.46M | 109.18M | 103.75M | 83.39M | 72.08M |
| EBITDA | 86.34M | 77.36M | 66.17M | 68.18M | 49.66M | 36.95M |
| Net Income | 57.41M | 42.84M | 29.98M | 37.66M | 21.18M | 11.05M |
Balance Sheet | ||||||
| Total Assets | 1.08B | 1.00B | 850.58M | 766.44M | 714.35M | 716.76M |
| Cash, Cash Equivalents and Short-Term Investments | 98.41M | 177.93M | 84.52M | 125.74M | 134.08M | 133.45M |
| Total Debt | 74.99M | 209.38M | 168.52M | 142.51M | 46.68M | 129.74M |
| Total Liabilities | 580.01M | 551.00M | 460.79M | 398.02M | 386.94M | 379.32M |
| Stockholders Equity | 443.79M | 401.34M | 349.57M | 344.46M | 311.65M | 321.03M |
Cash Flow | ||||||
| Free Cash Flow | 17.38M | 71.30M | -34.68M | -1.77M | 27.54M | 18.37M |
| Operating Cash Flow | 47.81M | 111.63M | 9.78M | 19.91M | 48.02M | 28.27M |
| Investing Cash Flow | -89.50M | -31.49M | -77.93M | -28.64M | -32.74M | 2.96M |
| Financing Cash Flow | 2.00K | 11.45M | 17.36M | 6.80M | -1.58M | -3.12M |
China Automotive Systems Technical Analysis
Positive
4.35
Price Trends
4.46
Positive
4.46
Positive
4.40
Positive
Market Momentum
0.06
Negative
51.55
Neutral
42.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAAS, the sentiment is Positive. The current price of 4.35 is below the 20-day moving average (MA) of 4.50, below the 50-day MA of 4.46, and below the 200-day MA of 4.40, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 42.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAAS.
China Automotive Systems Risk Analysis
China Automotive Systems disclosed 48 risk factors in its most recent earnings report. China Automotive Systems reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
China Automotive Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $139.09M | 2.50 | 13.77% | ― | 17.64% | 42.96% | |
70 Outperform | $869.04M | 16.88 | 7.36% | 3.31% | 11.32% | 27.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $199.95M | -1.86 | -59.31% | ― | -13.70% | -264.88% | |
48 Neutral | $133.28M | -4.95 | -17.17% | ― | -0.42% | 41.05% | |
47 Neutral | $58.11M | -1.45 | -46.40% | ― | 90.68% | 70.00% | |
39 Underperform | $63.13M | -0.54 | -30.09% | ― | ― | ― |
* Consumer Cyclical Sector Average
CAAS
China Automotive Systems
4.56
0.50
12.32%
CVGI
Commercial Vehicle Group
3.12
1.39
80.35%
KNDI
Kandi Technologies
0.63
-0.96
-60.44%
SMP
Standard Motor Products
38.22
1.97
5.45%
SRI
Stoneridge
7.08
-1.04
-12.81%
LIDR
AEye Inc
1.26
-1.46
-53.68%
China Automotive Systems Corporate Events
China Automotive Systems Nearly Doubles First-Half 2026 Earnings as High-Tech Steering Sales Surge
Aug 13, 2026
China Automotive Systems reported on August 13, 2026 that its first-half 2026 results showed a sharp acceleration in profitability, driven by record net sales of $412.5 million and a near doubling of diluted earnings per share to $0.97 versus a ye...
China Automotive Systems Sets August 13 Release for First-Half 2026 Results
Aug 5, 2026
China Automotive Systems, Inc., a major Chinese producer of power steering systems for passenger and commercial vehicles, plans to release its unaudited financial results for the first half of 2026, covering the period ended June 30, 2026. The dis...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.