China Automotive Systems (FRA:2IW) ROCE %: 17.84% (As of Dec. 2025)


FRA:2IW China Automotive Systems Inc FRA:2IW
76 GF Score
Price €3.78
GF Value €4.45
Valuation Modestly Undervalued
! 3 Warning Signs
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What is China Automotive Systems ROCE %?

China Automotive Systems FRA:2IW -1.05% 76 ROCE % is 17.84% as of Dec. 2025. GuruFocus rates FRA:2IW with a GF Score™ of 76/100 and a GF Value™ of €4.45 (Modestly Undervalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. China Automotive Systems's annualized ROCE % for the quarter that ended in Dec. 2025 was 17.84%.

China Automotive Systems  (FRA:2IW) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

China Automotive Systems ROCE % Related Terms

China Automotive Systems ROCE % Historical Data

* Premium members only.

The historical data trend for China Automotive Systems's ROCE % 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 ROCE % Chart

China Automotive Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.84 7.07 13.26 12.07 14.01

China Automotive Systems Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.38 12.40 14.55 14.41 17.84
FRA:2IW
76GF Score
China Automotive Systems Inc FRA:2IW
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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China Automotive Systems ROCE % Calculation

China Automotive Systems's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=53.889/( ( (812.303 - 435.94) + (855.45 - 462.391) )/ 2 )
=53.889/( (376.363+393.059)/ 2 )
=53.889/384.711
=14.01 %

China Automotive Systems's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Sep. 2025 )(Q: Dec. 2025 )
=67.748/( ( (800.148 - 433.901) + (855.45 - 462.391) )/ 2 )
=67.748/( ( 366.247 + 393.059 )/ 2 )
=67.748/379.653
=17.84 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 17.84% mean?
China Automotive Systems (FRA:2IW) has a ROCE % of 17.84% as of Dec. 2025.
Is China Automotive Systems' ROCE % too high?
China Automotive Systems' current ROCE % is 17.84%. The Vehicles & Parts industry median ROCE % is 7.94. China Automotive Systems' value of 17.84% is 124.7% above this industry median. 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' ROCE % compare to SCTH and INVZ?
China Automotive Systems' ROCE % of 17.84% can be compared against companies in the Vehicles & Parts industry. The industry median ROCE % is 7.94. China Automotive Systems' value of 17.84% is 124.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Vehicles & Parts company?
The median ROCE % among Vehicles & Parts companies is 7.94, based on 1,319 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Automotive Systems's current ROCE % of 17.84% is 124.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median ROCE % is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current ROCE % is 17.84%. 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 €4.45, compared to a current price of €3.78 — trading 15.1% below its estimated fair value. The current ROCE % is 17.84% and 124.7% above the Vehicles & Parts industry median of 7.94. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For China Automotive Systems (FRA:2IW), the current ROCE % is 17.84% 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 15.1% below its estimated GF Value™ of €4.45. GuruFocus considers China Automotive Systems to be Modestly Undervalued.

Key valuation signals for FRA:2IW:

  • ROCE %: 17.84%
  • GF Value™: €4.45 vs. price of €3.78 (15.1% below fair value)
  • GF Score™: 76/100 with 3 warning signs
  • Industry Position: 124.7% above the Vehicles & Parts median

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 Business Description

Other Exchanges CAAS:USA
Address No. 1 Henglong Road, Yu Qiao Development Zone, Shashi District, Hubei Province, Jing Zhou, CHN, 434000
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

Get the complete analysis for FRA:2IW

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.78
Price
€4.45
GF Value