China Stock Buy Hold or Sell Recommendation

CAAS
 Stock
  

USD 7.22  0.12  1.69%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding China Automotive Systems is 'Cautious Hold'. Macroaxis provides China Automotive buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CAAS positions. The advice algorithm takes into account all of China Automotive's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from China Automotive's buy-and-hold perspective. Continue to China Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as China and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards China Automotive Systems.

Execute China Automotive Buy or Sell Advice

The China recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on China Automotive Systems. Macroaxis does not own or have any residual interests in China Automotive Systems or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute China Automotive's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell China AutomotiveBuy China Automotive
Cautious Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Inapplicable
Details

Reporting Quality (M-Score)

Details
For the selected time horizon China Automotive Systems has a Mean Deviation of 3.65, Semi Deviation of 3.46, Standard Deviation of 5.0, Variance of 25.04, Downside Variance of 16.6 and Semi Variance of 11.96
We provide trade advice to complement the prevailing expert consensus on China Automotive Systems. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure China Automotive is not overpriced, please confirm all China Automotive Systems fundamentals, including its net income, short ratio, and the relationship between the price to sales and debt to equity . Given that China Automotive Systems has a price to earning of 9.63 X, we suggest you to validate China Automotive Systems market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

China Automotive Trading Alerts and Improvement Suggestions

China Automotive appears to be risky and price may revert if volatility continues
China Automotive has a strong financial position based on the latest SEC filings
About 65.0% of the company shares are held by company insiders
Latest headline from news.google.com: Auto Roundup GMs EV Push in China Fs Massive Recall Hog the Limelight - Yahoo Finance

China Automotive Returns Distribution Density

The distribution of China Automotive's historical returns is an attempt to chart the uncertainty of China Automotive's future price movements. The chart of the probability distribution of China Automotive stock daily returns describes the distribution of returns around its average expected value. We use China Automotive Systems price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of China Automotive returns is essential to provide solid investment advice for China Automotive.
Mean Return0.95Value At Risk-7.35
Potential Upside10.24Standard Deviation5.00
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of China Automotive historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

China Stock 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.
Security TypeSharesValue
Zacks Investment ManagementCommon Shares10 K33 K
Wolverine Trading LlcPut Options18.9 K119 K
Wolverine Trading LlcCall Options31.3 K198 K
Wolverine Trading LlcCommon Shares15.8 K38 K
Wolverine Trading LlcCommon Shares22.2 K107 K
Wexford Capital LpCommon Shares60.2 K477 K
Wells Fargo CompanyCommon Shares3001000
Wells Fargo CompanyCommon Shares1.2 KK
Walleye Trading LlcCommon Shares1.7 KK
Note, although China Automotive's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

China Automotive Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(24.86 M)(24.74 M)(32.85 M)(14.33 M)(9.11 M)(9.83 M)
Depreciation Amortization and Accretion15.36 M16.82 M17.85 M22.06 M27.11 M24.06 M
Net Cash Flow or Change in Cash and Cash Equivalents34.2 M19.88 M(9.57 M)21.66 M31.44 M33.92 M
Issuance Repayment of Debt Securities29.08 M(4.78 M)(12.64 M)(17.4 M)(2.04 M)(2.1 M)
Net Cash Flow from Financing28.46 M10.12 M(10.74 M)(19.83 M)(3.12 M)(3.2 M)
Net Cash Flow from Investing(47.31 M)2.45 M(27.32 M)(23.76 M)2.96 M3.2 M
Net Cash Flow Investment Acquisitions and Disposals6.6 M26.06 M7.69 M(8.54 M)12.71 M13.72 M
Net Cash Flow from Operations50.15 M12.53 M30.29 M57.43 M28.27 M28.11 M
Effect of Exchange Rate Changes on Cash4.16 M(5.22 M)(1.81 M)7.82 M3.32 M3.59 M
Share Based Compensation137 K100 K23 K88 K79.2 K89.26 K

China Automotive Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to China Automotive or Auto Components sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that China Automotive's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a China stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.93
β
Beta against NYSE Composite0.14
σ
Overall volatility
4.82
Ir
Information ratio 0.17

China Automotive Volatility Alert

China Automotive Systems shows above-average downside volatility for the selected time horizon. We advise investors to inspect China Automotive Systems further and ensure that all market timing and asset allocation strategies are consistent with the estimation of China Automotive future alpha. 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 bullish 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 Fundamentals Vs Peers

Comparing China Automotive's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze China Automotive's direct or indirect competition across all of the common fundamentals between China Automotive and the related equities. This way, we can detect undervalued stocks with similar characteristics as China Automotive or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of China Automotive's fundamental indicators could also be used in its relative valuation, which is a method of valuing China Automotive by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare China Automotive to competition
FundamentalsChina AutomotivePeer Average
Return On Equity0.07 %(0.31) %
Return On Asset0.0106 %(0.14) %
Profit Margin0.0404 %(1.27) %
Operating Margin0.0215 %(5.51) %
Current Valuation212.73 M16.62 B
Shares Outstanding30.2 M571.82 M
Shares Owned by Insiders65.18 %10.09 %
Shares Owned by Institutions3.08 %39.21 %
Number of Shares Shorted81.22 K4.71 M
Price to Earning9.63 X28.72 X
Price to Book0.66 X9.51 X
Price to Sales0.40 X11.42 X
Revenue497.99 M9.43 B
Gross Profit71.13 M27.38 B
EBITDA43.6 M3.9 B
Net Income10.73 M570.98 M
Cash and Equivalents100.71 M2.7 B
Cash per Share3.31 X5.01 X
Total Debt44.74 M5.32 B
Debt to Equity0.14 %48.70 %
Current Ratio1.46 X2.16 X
Book Value Per Share9.94 X1.93 K
Cash Flow from Operations28.27 M971.22 M
Short Ratio1.20 X4.00 X
Earnings Per Share0.75 X3.12 X
Price to Earnings To Growth0.61 X4.89 X
Target Price7.0
Number of Employees3.95 K18.84 K
Beta2.05-0.15
Market Capitalization214.39 M19.03 B
Total Asset716.76 M29.47 B
Retained Earnings217.05 M9.33 B
Working Capital177.85 M1.48 B
   Sale by Daming Hu of 182 shares of China Automotive [view details]

About China Automotive Buy or Sell Advice

When is the right time to buy or sell China Automotive Systems? Buying financial instruments such as China Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables233 M234.14 M210.34 M217.12 M
Inventories82.93 M88.33 M116.49 M125.69 M

Use Investing Ideas to Build Portfolios

In addition to having China Automotive in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Money Funds
Money Funds Theme
Funds or Etfs that invest most if their asset in companies from financial sector such as commercial banks, insurance companies, investment funds, and real estate. The Money Funds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Money Funds Theme or any other thematic opportunities.
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Continue to China Automotive Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the China Automotive Systems information on this page should be used as a complementary analysis to other China Automotive's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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Is China Automotive's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of China Automotive. If investors know China will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about China Automotive listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
2.06
Market Capitalization
214.4 M
Quarterly Revenue Growth YOY
0.27
Return On Assets
0.0106
Return On Equity
0.0712
The market value of China Automotive Systems is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Automotive's value that differs from its market value or its book value, called intrinsic value, which is China Automotive's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because China Automotive's market value can be influenced by many factors that don't directly affect China Automotive's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between China Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine China Automotive value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Automotive's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.