Buffett Brain · Research note
Score updated 26 Sept 2026
3750.HK· Industrials
Contemporary Amperex Technology
Contemporary Amperex Technology's strong ROIC of 16.9% in a top-quintile sector position contrasts with its high P/E of 33.4.
Buffett fit
Partial fit
Owner
40
Durability
94
Management
78
Price
17
Score updated 26 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of CATL, we'd be encouraged by the strong of 16.9%, which is top-quintile in its sector, and the net margin of 17.04%.
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CATL's durability is supported by its consistent profitability over the last five years and a strong balance sheet with a net debt/EBITDA of -1.82.
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Management's appears disciplined, with a share count CAGR of 1.37% and a strong /Net Income ratio of 1.26.
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The current earnings yield of 3.0% and yield of 3.77% suggest the stock is expensive relative to historical Buffett criteria.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 16.9% is top-quintile in the Industrials sector.
- 2Net margin of 17.04% indicates strong operational efficiency.
- 3Interest coverage ratio of 33.7 suggests solid financial health.
- 4Current ratio of 1.60 shows good short-term liquidity.
Concerns
5- 1 of 33.4 suggests high growth expectations are priced in.
- 2 of 26.27% is below the sector's top-quintile cutoff of 43.4%.
- 3High valuation with an earnings yield of only 3.0%.
- 4Potential technological disruption in the battery industry.
Price history
$477+47.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Contemporary Amperex Technology Co., Limited (CATL) is a leading player in the electric vehicle and energy storage battery market. It generates revenue by producing and selling various battery systems, including lithium iron phosphate and ternary high-nickel batteries. The company serves both domestic and international markets, with a significant focus on electric vehicles and energy storage solutions. CATL's unit economics are strong, with a net margin of 17.04%, indicating efficient operations.
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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Questions about Contemporary Amperex Technology
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