Taking everything into account, HLLY scores 4 out of 10 in our fundamental rating. HLLY was compared to 42 industry peers in the Automobile Components industry. There are concerns on the financial health of HLLY while its profitability can be described as average. 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.
The reported net income has been mixed in the past 5 years: HLLY reported negative net income in multiple years.
Each year in the past 5 years HLLY had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -2.14%, HLLY perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
HLLY has a Return On Equity (-5.66%) which is comparable to the rest of the industry.
HLLY has a Return On Invested Capital (5.69%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLLY 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

HLLY has a better Operating Margin (14.38%) than 95.24% of its industry peers.
In the last couple of years the Operating Margin of HLLY has declined.
HLLY has a better Gross Margin (43.03%) 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

HLLY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HLLY has more shares outstanding
Compared to 1 year ago, HLLY has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.41, we must say that HLLY is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.41, HLLY is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
HLLY has a debt to FCF ratio of 35.35. This is a negative value and a sign of low solvency as HLLY would need 35.35 years to pay back of all of its debts.
HLLY has a Debt to FCF ratio (35.35) which is in line with its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that HLLY has dependencies on debt financing.
The Debt to Equity ratio of HLLY (1.20) is worse than 76.19% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.2
Debt/FCF	35.35
Altman-Z	1.41

ROIC/WACC0.6

WACC9.53%

2.3 Liquidity

A Current Ratio of 2.78 indicates that HLLY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.78, HLLY is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
HLLY has a Quick Ratio of 1.06. This is a normal value and indicates that HLLY is financially healthy and should not expect problems in meeting its short term obligations.
HLLY has a Quick ratio of 1.06. This is comparable 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

The Earnings Per Share is expected to grow by 33.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.03% on average over the next years.

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

Based on the Price/Earnings ratio of 15.40, the valuation of HLLY can be described as correct.
66.67% of the companies in the same industry are more expensive than HLLY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.32, HLLY is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.94 indicates a reasonable valuation of HLLY.
Based on the Price/Forward Earnings ratio, HLLY is valued a bit cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.57. HLLY is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	15.4
Fwd PE	9.94

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as HLLY.
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	30.35
EV/EBITDA	8.9

4.3 Compensation for Growth

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