China Automotive Systems Inc. (NASDAQ:CAAS) has a beta of 1.56, a 12-month trailing P/E ratio of 9.87, and a growth ratio of 0.99. The stock’s Relative Strength Index (RSI) is 67.70, with weekly volatility at 9.55% and ATR at 0.34. The CAAS stock’s 52-week price range has touched low of $1.42 and a $4.16 high. Its shares traded higher over the last trading session, gaining 7.96% on 07/01/20. The shares fell to a low of $2.81 before closing at $3.12. Intraday shares traded counted 0.29 million, which was -280.03% lower than its 30-day average trading volume of 75.88K. CAAS’s previous close was $2.89 while the outstanding shares total 31.33M.
Investors have identified the Auto Parts company China Automotive Systems Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $91.54 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
China Automotive Systems Inc. (CAAS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CAAS, the company has in raw cash 108.17 million on their books with 44.06 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 417110000 million total, with 281486000 million as their total liabilities.
CAAS were able to record 27.25 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 26.17 million. In cash movements, the company had a total of 29.23 million as operating cash flow.
Potential earnings growth for China Automotive Systems Inc. (CAAS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, China Automotive Systems Inc. recorded a total of 73.56 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -48.45% coming in sequential stages and their sales for the third quarter reducing by -57.63%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 62.4 million trying to sell their products during the last quarter, with the result yielding a gross income of 11.15 million. This allows shareholders to hold on to 31.33M with the revenue now reading 0.00 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-0.09 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.32 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CAAS sounds very interesting.
Is the stock of CAAS attractive?
In related news, Chief Financial Officer, LI JIE bought 33 shares of the company’s stock in a transaction that recorded on Sep 10. The purchase was performed at an average price of 1.81, for a total value of 60. As the purchase deal closes, the Chief Financial Officer, LI JIE now bought 2,000 shares of the company’s stock, valued at 3,620. Also, Chief Financial Officer, LI JIE bought 5,125 shares of the company’s stock in a deal that was recorded on Sep 06. The shares were cost at an average price of 1.85 per share, with a total market value of 9,481. Following this completion of disposal, the Chief Financial Officer, LI JIE now holds 875 shares of the company’s stock, valued at 1,619. In the last 6 months, insiders have changed their ownership in shares of company stock by 62.87%.
1 out of 1 analysts covering the stock have rated it a Buy, while 0 have maintained a Hold recommendation on China Automotive Systems Inc.. 0 analysts has assigned a Sell rating on the CAAS stock. The 12-month mean consensus price target for the company’s shares has been set at $3.00.