HITI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 191 industry peers in the Pharmaceuticals industry. While HITI seems to be doing ok healthwise, there are quite some concerns on its profitability. HITI has a valuation in line with the averages, but on the other hand it scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HITI had negative earnings in the past year.
In the past year HITI had a positive cash flow from operations.
HITI had negative earnings in each of the past 5 years.
In multiple years HITI reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -3.76%, HITI is in the better half of the industry, outperforming 73.82% of the companies in the same industry.
The Return On Equity of HITI (-6.93%) is better than 76.44% of its industry peers.
HITI has a better Return On Invested Capital (5.06%) than 82.72% of its industry peers.

		Industry Rank	Sector Rank
ROA	-3.76%
ROE	-6.93%
ROIC	5.06%

ROA(3y)-14.91%

ROA(5y)-13.84%

ROE(3y)-26.27%

ROE(5y)-34.31%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

HITI has a Operating Margin of 2.30%. This is in the better half of the industry: HITI outperforms 78.01% of its industry peers.
With a Gross Margin value of 25.83%, HITI perfoms like the industry average, outperforming 54.97% of the companies in the same industry.
In the last couple of years the Gross Margin of HITI has declined.

		Industry Rank	Sector Rank
OM	2.3%
PM (TTM)	N/A
GM	25.83%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-8.25%

GM growth 5Y-5.48%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HITI is destroying value.
There is no outstanding debt for HITI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

HITI has an Altman-Z score of 2.77. This is not the best score and indicates that HITI is in the grey zone with still only limited risk for bankruptcy at the moment.
HITI's Altman-Z score of 2.77 is fine compared to the rest of the industry. HITI outperforms 65.97% of its industry peers.
HITI has a debt to FCF ratio of 4.08. This is a neutral value as HITI would need 4.08 years to pay back of all of its debts.
HITI has a better Debt to FCF ratio (4.08) than 85.34% of its industry peers.
HITI has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
HITI has a worse Debt to Equity ratio (0.43) than 61.26% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.43
Debt/FCF	4.08
Altman-Z	2.77

ROIC/WACC0.6

WACC8.4%

2.3 Liquidity

A Current Ratio of 1.85 indicates that HITI should not have too much problems paying its short term obligations.
HITI has a Current ratio of 1.85. This is in the lower half of the industry: HITI underperforms 64.92% of its industry peers.
HITI has a Quick Ratio of 1.29. This is a normal value and indicates that HITI is financially healthy and should not expect problems in meeting its short term obligations.
HITI has a worse Quick ratio (1.29) than 69.63% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.85
Quick Ratio	1.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HITI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.18%, which is quite impressive.

EPS 1Y (TTM)26.18%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%119.28%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%14.82%

3.2 Future

HITI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 91.41% yearly.
HITI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.96% yearly.

EPS Next Y386.68%

EPS Next 2Y209.86%

EPS Next 3Y159.67%

EPS Next 5Y91.41%

Revenue Next Year29.67%

Revenue Next 2Y19.93%

Revenue Next 3Y18.21%

Revenue Next 5Y13.96%

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for HITI. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 22.62 indicates a rather expensive valuation of HITI.
HITI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HITI is cheaper than 75.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HITI to the average of the S&P500 Index (25.57), we can say HITI is valued inline with the index average.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	22.62

4.2 Price Multiples

90.58% of the companies in the same industry are more expensive than HITI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HITI is valued cheaply inside the industry as 87.96% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	13.36
EV/EBITDA	7.71

4.3 Compensation for Growth

HITI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HITI's earnings are expected to grow with 159.67% in the coming years.