China Automotive SystemsFRA:2IW +0.53%76 Interest Coverage is 52.14 as of Dec. 2025, which is 190% above its 10-year median of 18.00. GuruFocus rates FRA:2IW with a GF Score™ of 76/100 and a GF Value™ of €4.49 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,066 Vehicles & Parts companies, China Automotive Systems ranks better than 77.67% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. China Automotive Systems's
Operating Income
for the
three
months ended in Dec. 2025 was €20.5 Mil. China Automotive Systems's Interest Expense for the
three
months ended in Dec. 2025 was €-0.4 Mil.
China Automotive Systems's interest coverage for the quarter that ended in Dec. 2025 was 52.14.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for China Automotive Systems's Interest Coverage or its related term are showing as below:
FRA:2IW'
s Interest Coverage Range Over the Past 10 Years
Min: 2.73 Med: 18 Max: 42.14
Current: 34.71
FRA:2IW's Interest Coverage is ranked better than 77.67% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs FRA:2IW: 34.71
China Automotive Systems (FRA:2IW) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
China Automotive Systems Interest Coverage Related Terms
China Automotive Systems Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:2IW vs INVZ, CVGI, SRI: Interest Coverage Comparison
For the Auto Parts subindustry, China Automotive Systems's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Automotive Systems Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's Interest Coverage falls into.
China Automotive Systems Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Automotive Systems (FRA:2IW) has a Interest Coverage of 52.14 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Automotive Systems and its competitors. This is 190% above median its historical median of 18.00. Over the past decade, China Automotive Systems' Interest Coverage has ranged from 2.73 to 42.14. According to the industry distribution chart, China Automotive Systems ranks #238 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 22.3%.
Is China Automotive Systems' Interest Coverage too high?
China Automotive Systems' current Interest Coverage of 52.14 is 190% above median its 10-year median of 18.00. Over the past 10 years, this metric has ranged from a low of 2.73 to a high of 42.14. The Vehicles & Parts industry median Interest Coverage is 8.30. China Automotive Systems' value of 52.14 is 528.6% above this industry median. Based on the distribution chart, China Automotive Systems ranks #238 out of 1066 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, China Automotive Systems has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Interest Coverage compare to INVZ and CVGI?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #238 out of 1066 companies for Interest Coverage. This places China Automotive Systems in the top 22% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.30. China Automotive Systems' value of 52.14 is 528.6% above this benchmark. Historically, China Automotive Systems' own Interest Coverage has ranged from 2.73 to 42.14 over the past decade. While the company's 10-year median is 18.00 vs. the industry median of 8.30, China Automotive Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Automotive Systems's current Interest Coverage of 52.14 is 528.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current Interest Coverage is 52.14, which is 190% above median its own 10-year median of 18.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Automotive Systems stock overvalued right now?
Based on GuruFocus' analysis, China Automotive Systems (FRA:2IW) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.49, compared to a current price of €3.80 — trading 15.4% below its estimated fair value. The current Interest Coverage is 52.14, which is 190% above median its 10-year median of 18.00 and 528.6% above the Vehicles & Parts industry median of 8.30. China Automotive Systems' overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For China Automotive Systems (FRA:2IW), the current Interest Coverage is 52.14 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Automotive Systems (FRA:2IW) Overvalued in 2026?
Based on GuruFocus' analysis, China Automotive Systems stock appears to be undervalued.
The current stock price of €3.80 is trading 15.4% below its estimated GF Value™ of €4.49.
GuruFocus considers China Automotive Systems to be Modestly Undervalued.
Key valuation signals for FRA:2IW:
Interest Coverage: 52.14 (190% above median its 10-year median of 18.00)
GF Value™: €4.49 vs. price of €3.80 (15.4% below fair value)
Industry Position: 528.6% above the Vehicles & Parts median (#238 of 1066)
No single metric tells the full story. See the FRA:2IW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Automotive Systems Inc is a holding company. The firm, through its subsidiary, is a supplier of power steering systems and components to China's automotive industry. Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. The company offers four separate series of power steering models, including rack and pinion power steering, integral power steering, electronic power steering, steering columns, steering oil pumps, and steering hoses. Geographically, it derives a majority of its revenue from China.
76GF Score
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