China Automotive SystemsFRA:2IW -1.05%76 ROE % is 18.91% as of Dec. 2025, which is 269% above its 10-year median of 5.12. 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. Among 1,308 Vehicles & Parts companies, China Automotive Systems ranks better than 70.57% on this metric.
The historical rank and industry rank for China Automotive Systems's ROE % or its related term are showing as below:
FRA:2IW'
s ROE % Range Over the Past 10 Years
Min: -6.45 Med: 5.12 Max: 11.55
Current: 11.55
During the past 13 years, China Automotive Systems's highest ROE % was 11.55%. The lowest was -6.45%. And the median was 5.12%.
FRA:2IW's ROE % is ranked better than 70.57% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs FRA:2IW: 11.55
China Automotive Systems (FRA:2IW) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Auto Parts subindustry, China Automotive Systems's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's ROE % distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
China Automotive Systems (FRA:2IW) has a ROE % of 18.91% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on China Automotive Systems and its competitors. This is 269% above median its historical median of 5.12. According to the industry distribution chart, China Automotive Systems ranks #385 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 29.4%.
Is China Automotive Systems' ROE % too high?
China Automotive Systems' current ROE % of 18.91% is 269% above median its 10-year median of 5.12. The Vehicles & Parts industry median ROE % is 6.62. China Automotive Systems' value of 18.91% is 185.6% above this industry median. Based on the distribution chart, China Automotive Systems ranks #385 out of 1308 companies in the Vehicles & Parts industry, which is above the industry midpoint. 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' ROE % compare to SCTH and INVZ?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #385 out of 1308 companies for ROE %. This puts China Automotive Systems in the upper half of its industry. The industry median ROE % is 6.62. China Automotive Systems' value of 18.91% is 185.6% above this benchmark. While the company's 10-year median is 5.12 vs. the industry median of 6.62, 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Automotive Systems's current ROE % of 18.91% is 185.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current ROE % is 18.91%, which is 269% above median its own 10-year median of 5.12. 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 ROE % is 18.91%, which is 269% above median its 10-year median of 5.12 and 185.6% above the Vehicles & Parts industry median of 6.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For China Automotive Systems (FRA:2IW), the current ROE % is 18.91% 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:
ROE %: 18.91% (269% above median its 10-year median of 5.12)
GF Value™: €4.45 vs. price of €3.78 (15.1% below fair value)
Industry Position: 185.6% above the Vehicles & Parts median (#385 of 1308)
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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