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China Automotive SystemsFRA:2IW 78 Return-on-Tangible-Asset is 7.70% as of Dec. 2025, which is 235% above its 10-year median of 2.30. GuruFocus rates FRA:2IW with a GF Score™ of 78/100 and a GF Value™ of €4.42 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,331 Vehicles & Parts companies, China Automotive Systems ranks better than 62.43% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. China Automotive Systems's annualizedNet Income for the quarter that ended in Dec. 2025 was €62.9 Mil. China Automotive Systems's average total tangible assets for the quarter that ended in Dec. 2025 was €817.4 Mil. Therefore, China Automotive Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 7.70%.
The historical rank and industry rank for China Automotive Systems's Return-on-Tangible-Asset or its related term are showing as below:
FRA:2IW'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -3.13 Med: 2.3 Max: 5.17
Current: 4.84
During the past 13 years, China Automotive Systems's highest Return-on-Tangible-Asset was 5.17%. The lowest was -3.13%. And the median was 2.30%.
FRA:2IW's Return-on-Tangible-Asset is ranked better than 62.43% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 3.17
vs FRA:2IW: 4.84
China Automotive Systems (FRA:2IW) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
China Automotive Systems Return-on-Tangible-Asset Related Terms
China Automotive Systems Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for China Automotive Systems's Return-on-Tangible-Asset can be seen below:
* 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 Return-on-Tangible-Asset Chart
FRA:2IW vs INVZ, CVGI, SES: Return-on-Tangible-Asset Comparison
For the Auto Parts subindustry, China Automotive Systems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 7.70% mean?
China Automotive Systems (FRA:2IW) has a Return-on-Tangible-Asset of 7.70% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on China Automotive Systems and its competitors. This is 235% above median its historical median of 2.30. According to the industry distribution chart, China Automotive Systems ranks #500 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 37.6%.
Is China Automotive Systems' Return-on-Tangible-Asset too high?
China Automotive Systems' current Return-on-Tangible-Asset of 7.70% is 235% above median its 10-year median of 2.30. The Vehicles & Parts industry median Return-on-Tangible-Asset is 3.17. China Automotive Systems' value of 7.70% is 142.9% above this industry median. Based on the distribution chart, China Automotive Systems ranks #500 out of 1331 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, China Automotive Systems has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Return-on-Tangible-Asset compare to INVZ and CVGI?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #500 out of 1331 companies for Return-on-Tangible-Asset. This puts China Automotive Systems in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.17. China Automotive Systems' value of 7.70% is 142.9% above this benchmark. While the company's 10-year median is 2.30 vs. the industry median of 3.17, 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 Return-on-Tangible-Asset for a Vehicles & Parts company?
The median Return-on-Tangible-Asset among Vehicles & Parts companies is 3.17, based on 1,331 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Automotive Systems's current Return-on-Tangible-Asset of 7.70% is 142.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Asset is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current Return-on-Tangible-Asset is 7.70%, which is 235% above median its own 10-year median of 2.30. 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 €4.42, compared to a current price of €3.78 — trading 14.5% below its estimated fair value. The current Return-on-Tangible-Asset is 7.70%, which is 235% above median its 10-year median of 2.30 and 142.9% above the Vehicles & Parts industry median of 3.17. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For China Automotive Systems (FRA:2IW), the current Return-on-Tangible-Asset is 7.70% 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 €3.78 is trading 14.5% below its estimated GF Value™ of €4.42.
GuruFocus considers China Automotive Systems to be Modestly Undervalued.
Key valuation signals for FRA:2IW:
Return-on-Tangible-Asset: 7.70% (235% above median its 10-year median of 2.30)
GF Value™: €4.42 vs. price of €3.78 (14.5% below fair value)
Industry Position: 142.9% above the Vehicles & Parts median (#500 of 1331)
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.
78GF Score
Get the complete analysis for FRA:2IW
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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