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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
China Automotive Systems's 3-Year RORE % for the quarter that ended in Dec. 2025 was 2.27%.
The industry rank for China Automotive Systems's 3-Year RORE % or its related term are showing as below:
HAM:2IW's 3-Year RORE % is ranked better than 50.16% of 1250
companies
in the Vehicles & Parts industry
Industry Median: 4.345
vs HAM:2IW: 2.27
China Automotive Systems (HAM:2IW) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
China Automotive Systems 3-Year RORE % Related Terms
China Automotive Systems 3-Year RORE % 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: 3-Year RORE % Comparison
For the Auto Parts subindustry, China Automotive Systems's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2025 and 3-year before.
China Automotive Systems (HAM:2IW) has a 3-Year RORE % of 2.27 as of Dec. 2025. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on China Automotive Systems and its competitors. According to the industry distribution chart, China Automotive Systems ranks #623 out of 1250 companies in the Vehicles & Parts industry, placing it in the top 49.8%.
Is China Automotive Systems' 3-Year RORE % too high?
China Automotive Systems' current 3-Year RORE % is 2.27. The Vehicles & Parts industry median 3-Year RORE % is 4.35. China Automotive Systems' value of 2.27 is 47.8% below this industry median. Based on the distribution chart, China Automotive Systems ranks #623 out of 1250 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' 3-Year RORE % compare to INVZ and CVGI?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #623 out of 1250 companies for 3-Year RORE %. This puts China Automotive Systems in the upper half of its industry. The industry median 3-Year RORE % is 4.35. China Automotive Systems' value of 2.27 is 47.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Vehicles & Parts company?
The median 3-Year RORE % among Vehicles & Parts companies is 4.35, based on 1,250 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Automotive Systems's current 3-Year RORE % of 2.27 is 47.8% below 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median 3-Year RORE % is 4.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current 3-Year RORE % is 2.27. 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 3-Year RORE % of 2.27. The stock's GF Value™ is €4.77, compared to a current price of €3.98 — trading 16.7% below its estimated fair value. The current 3-Year RORE % is 2.27 and 47.8% below the Vehicles & Parts industry median of 4.35. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For China Automotive Systems (HAM:2IW), the current 3-Year RORE % is 2.27 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 16.7% below its estimated GF Value™ of €4.77.
Key valuation signals for HAM:2IW:
3-Year RORE %: 2.27
GF Value™: €4.77 vs. price of €3.98 (16.7% below fair value)
Industry Position: 47.8% below the Vehicles & Parts median (#623 of 1250)
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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