Overall HLLY gets a fundamental rating of 4 out of 10. We evaluated HLLY against 42 industry peers in the Automobile Components industry. HLLY has a medium profitability rating, but doesn't score so well on its financial health evaluation. HLLY has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HLLY had positive earnings in the past year.
In the past year HLLY had a positive cash flow from operations.
In multiple years HLLY reported negative net income over the last 5 years.
Each year in the past 5 years HLLY had a positive operating cash flow.

1.2 Ratios

HLLY has a Return On Assets (-2.14%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -5.66%, HLLY is in line with its industry, outperforming 47.62% of the companies in the same industry.
The Return On Invested Capital of HLLY (5.69%) is comparable to the rest of the industry.
HLLY had an Average Return On Invested Capital over the past 3 years of 4.83%. This is below the industry average of 9.10%.
The last Return On Invested Capital (5.69%) for HLLY is above the 3 year average (4.83%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-2.14%
ROE	-5.66%
ROIC	5.69%

ROA(3y)1.82%

ROA(5y)1.25%

ROE(3y)5.52%

ROE(5y)4.27%

ROIC(3y)4.83%

ROIC(5y)5.94%

1.3 Margins

The Operating Margin of HLLY (14.38%) is better than 95.24% of its industry peers.
In the last couple of years the Operating Margin of HLLY has declined.
The Gross Margin of HLLY (43.03%) is better than 92.86% of its industry peers.
In the last couple of years the Gross Margin of HLLY has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	14.38%
PM (TTM)	N/A
GM	43.03%

OM growth 3Y-12.56%

OM growth 5Y-3.75%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.46%

GM growth 5Y-0.37%

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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 HLLY is destroying value.
The number of shares outstanding for HLLY has been increased compared to 1 year ago.
The debt/assets ratio for HLLY is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.43, we must say that HLLY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.43, HLLY is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
The Debt to FCF ratio of HLLY is 35.35, which is on the high side as it means it would take HLLY, 35.35 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 35.35, HLLY perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
HLLY has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
HLLY has a Debt to Equity ratio of 1.20. This is in the lower half of the industry: HLLY underperforms 76.19% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.2
Debt/FCF	35.35
Altman-Z	1.43

ROIC/WACC0.61

WACC9.25%

2.3 Liquidity

A Current Ratio of 2.78 indicates that HLLY has no problem at all paying its short term obligations.
HLLY has a better Current ratio (2.78) than 71.43% of its industry peers.
A Quick Ratio of 1.06 indicates that HLLY should not have too much problems paying its short term obligations.
HLLY's Quick ratio of 1.06 is in line compared to the rest of the industry. HLLY outperforms 40.48% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.78
Quick Ratio	1.06

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

HLLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 177.78%, which is quite impressive.
HLLY shows a decrease in Revenue. In the last year, the revenue decreased by -3.20%.
The Revenue has been growing by 10.31% on average over the past years. This is quite good.

EPS 1Y (TTM)177.78%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%400%

Revenue 1Y (TTM)-3.2%

Revenue growth 3Y-4.56%

Revenue growth 5Y10.31%

Sales Q2Q%3.23%

3.2 Future

HLLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.45% yearly.
Based on estimates for the next years, HLLY will show a small growth in Revenue. The Revenue will grow by 5.03% on average per year.

EPS Next Y12.93%

EPS Next 2Y39.13%

EPS Next 3Y32.23%

EPS Next 5Y33.45%

Revenue Next Year0.17%

Revenue Next 2Y2.59%

Revenue Next 3Y3.63%

Revenue Next 5Y5.03%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.16, which indicates a correct valuation of HLLY.
64.29% of the companies in the same industry are more expensive than HLLY, based on the Price/Earnings ratio.
HLLY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.43 indicates a reasonable valuation of HLLY.
Based on the Price/Forward Earnings ratio, HLLY is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
HLLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	16.16
Fwd PE	10.43

4.2 Price Multiples

HLLY's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLLY is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	31.85
EV/EBITDA	9.11

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HLLY's earnings are expected to grow with 32.23% in the coming years. This may justify a more expensive valuation.