HOLLEY INC (HLLY)
US43538H1032 - Common Stock
Overall HLLY gets a fundamental rating of 4 out of 10. We evaluated HLLY against 82 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HLLY was profitable.
In the past year HLLY had a positive cash flow from operations.
Of the past 5 years HLLY 4 years were profitable.
HLLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.33%, HLLY is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
The Return On Equity of HLLY (3.43%) is worse than 71.95% of its industry peers.
The Return On Invested Capital of HLLY (5.45%) is worse than 74.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLLY is below the industry average of 9.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 3.43% | ||
| ROIC | 5.45% |
ROA(3y)1.74%
ROA(5y)N/A
ROE(3y)4.4%
ROE(5y)N/A
ROIC(3y)6.9%
ROIC(5y)N/A
1.3 Margins
HLLY has a Profit Margin of 2.55%. This is in the lower half of the industry: HLLY underperforms 68.29% of its industry peers.
In the last couple of years the Profit Margin of HLLY has declined.
HLLY's Operating Margin of 11.66% is in line compared to the rest of the industry. HLLY outperforms 46.34% of its industry peers.
HLLY's Operating Margin has improved in the last couple of years.
The Gross Margin of HLLY (38.02%) is better than 92.68% 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 | 11.66% | ||
| PM (TTM) | 2.55% | ||
| GM | 38.02% |
OM growth 3Y-9.98%
OM growth 5Y28.36%
PM growth 3Y-23.62%
PM growth 5YN/A
GM growth 3Y-2.04%
GM growth 5Y0.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLLY is destroying value.
Compared to 1 year ago, HLLY has more shares outstanding
Compared to 1 year ago, HLLY has an improved debt to assets ratio.
2.2 Solvency
HLLY has an Altman-Z score of 1.30. This is a bad value and indicates that HLLY is not financially healthy and even has some risk of bankruptcy.
HLLY's Altman-Z score of 1.30 is on the low side compared to the rest of the industry. HLLY is outperformed by 84.15% of its industry peers.
HLLY has a debt to FCF ratio of 8.17. This is a slightly negative value and a sign of low solvency as HLLY would need 8.17 years to pay back of all of its debts.
HLLY has a Debt to FCF ratio of 8.17. This is in the lower half of the industry: HLLY underperforms 70.73% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that HLLY has dependencies on debt financing.
HLLY has a worse Debt to Equity ratio (1.20) than 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 8.17 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.5
WACC10.8%
2.3 Liquidity
HLLY has a Current Ratio of 2.93. This indicates that HLLY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.93, HLLY belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
HLLY has a Quick Ratio of 1.17. This is a normal value and indicates that HLLY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HLLY (1.17) is better than 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
HLLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.00%, which is quite impressive.
The earnings per share for HLLY have been decreasing by -16.70% on average. This is quite bad
Looking at the last year, HLLY shows a decrease in Revenue. The Revenue has decreased by -6.13% in the last year.
The Revenue has been growing by 36.76% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)200%
EPS 3Y-16.7%
EPS 5YN/A
EPS Q2Q%-133.33%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y9.37%
Revenue growth 5Y36.76%
Sales Q2Q%-14.37%
3.2 Future
The Earnings Per Share is expected to grow by 33.07% on average over the next years. This is a very strong growth
HLLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y-6.5%
EPS Next 2Y29.1%
EPS Next 3Y37.85%
EPS Next 5Y33.07%
Revenue Next Year-5.13%
Revenue Next 2Y0%
Revenue Next 3Y2.11%
Revenue Next 5Y4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.00, HLLY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HLLY indicates a slightly more expensive valuation: HLLY is more expensive than 68.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.29, HLLY is valued at the same level.
The Price/Forward Earnings ratio is 7.85, which indicates a rather cheap valuation of HLLY.
Based on the Price/Forward Earnings ratio, HLLY is valued a bit cheaper than the industry average as 64.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, HLLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
HLLY's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HLLY is valued cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.07 | ||
| EV/EBITDA | 8.88 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HLLY's earnings are expected to grow with 37.85% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.1%
EPS Next 3Y37.85%
5. Dividend
5.1 Amount
HLLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HOLLEY INC
NYSE:HLLY (11/22/2024, 8:04:00 PM)
After market: 2.88 0 (0%)2.88
+0.14 (+5.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap345.02M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32 | ||
| Fwd PE | 7.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 3.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.66% | ||
| PM (TTM) | 2.55% | ||
| GM | 38.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)200%
EPS 3Y-16.7%
EPS 5Y
EPS Q2Q%
EPS Next Y-6.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y9.37%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y