China Automotive SystemsHAM:2IW 78 Pretax Margin % is 8.45% as of Dec. 2025, which is 100% above its 10-year median of 4.22. GuruFocus rates HAM:2IW with a GF Score™ of 78/100 and a GF Value™ of €4.69. The stock has 3 warning signs investors should review. Among 1,325 Vehicles & Parts companies, China Automotive Systems ranks better than 70.26% on this metric.
The historical rank and industry rank for China Automotive Systems's Pretax Margin % or its related term are showing as below:
HAM:2IW'
s Pretax Margin % Range Over the Past 10 Years
Min: -2.92 Med: 4.22 Max: 8.37
Current: 8.02
HAM:2IW's Pretax Margin % is ranked better than 70.26% of 1325
companies
in the Vehicles & Parts industry
Industry Median: 4.38
vs HAM:2IW: 8.02
China Automotive Systems (HAM:2IW) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
China Automotive Systems Pretax Margin % Related Terms
China Automotive Systems Pretax Margin % 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.
HAM:2IW vs INVZ, CVGI, SRI: Pretax Margin % Comparison
For the Auto Parts subindustry, China Automotive Systems's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's Pretax Margin % falls into.
* 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 (HAM:2IW) has a Pretax Margin % of 8.45% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on China Automotive Systems and its competitors. This is 100% above median its historical median of 4.22. According to the industry distribution chart, China Automotive Systems ranks #394 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 29.7%.
Is China Automotive Systems' Pretax Margin % too high?
China Automotive Systems' current Pretax Margin % of 8.45% is 100% above median its 10-year median of 4.22. The Vehicles & Parts industry median Pretax Margin % is 4.38. China Automotive Systems' value of 8.45% is 92.9% above this industry median. Based on the distribution chart, China Automotive Systems ranks #394 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, China Automotive Systems has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Pretax Margin % compare to INVZ and CVGI?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #394 out of 1325 companies for Pretax Margin %. This puts China Automotive Systems in the upper half of its industry. The industry median Pretax Margin % is 4.38. China Automotive Systems' value of 8.45% is 92.9% above this benchmark. While the company's 10-year median is 4.22 vs. the industry median of 4.38, 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 Pretax Margin % for a Vehicles & Parts company?
The median Pretax Margin % among Vehicles & Parts companies is 4.38, based on 1,325 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Automotive Systems's current Pretax Margin % of 8.45% is 92.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median Pretax Margin % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current Pretax Margin % is 8.45%, which is 100% above median its own 10-year median of 4.22. 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?
China Automotive Systems (HAM:2IW) has a current Pretax Margin % of 8.45%. The stock's GF Value™ is €4.69, compared to a current price of €3.98 — trading 15.2% below its estimated fair value. The current Pretax Margin % is 8.45%, which is 100% above median its 10-year median of 4.22 and 92.9% above the Vehicles & Parts industry median of 4.38. China Automotive Systems' overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For China Automotive Systems (HAM:2IW), the current Pretax Margin % is 8.45% 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 (HAM:2IW) Overvalued in 2026?
Based on GuruFocus' analysis, China Automotive Systems stock appears to be undervalued.
The current stock price of €3.98 is trading 15.2% below its estimated GF Value™ of €4.69.
Key valuation signals for HAM:2IW:
Pretax Margin %: 8.45% (100% above median its 10-year median of 4.22)
GF Value™: €4.69 vs. price of €3.98 (15.2% below fair value)
Industry Position: 92.9% above the Vehicles & Parts median (#394 of 1325)
No single metric tells the full story. See the HAM: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.
78GF Score
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