China Automotive Systems Inc. Ordinary Share (CAAS)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I begin with the business and the price. China Automotive Systems sells power steering gears, steering columns, sensors and related parts to car and truck makers. It is a cyclical auto supplier, not a consumer franchise, and its competitive position depends on cost, relationships and technology. In fiscal Q4 2025, the latest reported quarter, revenue was $229.2 million and net income was $18.4 million, an 8.04% net margin. The supplied growth figures are strong: revenue up 21.45% and profit up 103.18%. FairStock calculates ROE of 14.72%, but ROCE of only 4.90%, so the equity return may be helped by leverage or non-operating items; debt to equity is modest at 0.15. Balance-sheet signals are mixed: a 9/9 Piotroski F-Score, but an Altman Z-Score of 1.17, which points to financial stress. Cash is the weak spot: trailing free cash flow is -$2.9 million, a -2.2% FCF yield. At the 2026-10-13 close of $4.42 and a $135.8 million market cap, FairStock's P/E is 2.33, P/B is 0.30, EV/EBITDA is 1.57, and PEG is 0.02. Its Graham Number is $25.08, leaving an 82.38% margin of safety on that math. Such a discount can mean opportunity, but it can also reflect China exposure, cyclicality, governance, or a peak in earnings. No Peter Lynch category is assigned because only 0 years of filed results exist, needing 3. I would want improving free cash flow and more consistent filings before treating the discount as durable.

In plain English: China Automotive Systems makes steering systems and parts for cars and trucks, mainly in China. In the latest reported quarter, sales were $229.2 million and net income was $18.4 million, with profit growing much faster than sales, but trailing cash flow was slightly negative. The stock looks inexpensive compared with its earnings and accounting value, though the business is cyclical and carries real risks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer