HOLLEY INC (HLLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLLY - US43538H1032 - Common Stock
4.18 USD
-0.03 (-0.71%)
4.18 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HLLY. HLLY was compared to 42 industry peers in the Automobile Components industry. While HLLY is still in line with the averages on profitability rating, there are concerns on its financial health. HLLY is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years HLLY always reported a positive cash flow from operatings.
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.
HLLY has a Return On Invested Capital (5.69%) which 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 3 year average ROIC (4.83%) for HLLY is below the current ROIC(5.69%), indicating increased profibility in the last year.
| 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 Operating Margin of 14.38%. This is amongst the best in the industry. HLLY outperforms 95.24% of its industry peers.
In the last couple of years the Operating Margin of HLLY has declined.
With an excellent Gross Margin value of 43.03%, HLLY belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLLY is destroying value.
Compared to 1 year ago, HLLY has more shares outstanding
HLLY has a worse debt/assets ratio than last year.
2.2 Solvency
HLLY has an Altman-Z score of 1.45. This is a bad value and indicates that HLLY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.45, HLLY is not doing good in the industry: 71.43% 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's Debt to FCF ratio of 35.35 is in line compared to the rest of the industry. HLLY outperforms 42.86% 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 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 | 1.45 |
ROIC/WACC0.6
WACC9.45%
2.3 Liquidity
HLLY has a Current Ratio of 2.78. This indicates that HLLY is financially healthy and has no problem in meeting its short term obligations.
HLLY has a better Current ratio (2.78) than 71.43% of its industry peers.
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'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 |
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.
The Revenue has decreased by -3.20% in the past year.
Measured over the past years, HLLY shows a quite strong growth in Revenue. The Revenue has been growing by 10.31% on average per year.
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
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
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
The Price/Earnings ratio is 16.72, which indicates a correct valuation of HLLY.
61.90% of the companies in the same industry are more expensive than HLLY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. HLLY is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.80, the valuation of HLLY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLLY indicates a somewhat cheap valuation: HLLY is cheaper than 71.43% of the companies listed in the same industry.
HLLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLLY is on the same level as its industry peers.
HLLY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.95 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
HLLY's 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.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y39.13%
EPS Next 3Y32.23%
5. Dividend
5.1 Amount
HLLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
4.18
-0.03 (-0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners57.69%
Inst Owner Change0.07%
Ins Owners5.59%
Ins Owner Change5.96%
Market Cap499.18M
Revenue(TTM)598.13M
Net Income(TTM)-24.91M
Analysts81.43
Price Target4.97 (18.9%)
Short Float %1.95%
Short Ratio1.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.94%
Min EPS beat(2)-36.06%
Max EPS beat(2)-7.81%
EPS beat(4)1
Avg EPS beat(4)114.56%
Min EPS beat(4)-61.55%
Max EPS beat(4)563.65%
EPS beat(8)2
Avg EPS beat(8)16%
EPS beat(12)4
Avg EPS beat(12)31.82%
EPS beat(16)5
Avg EPS beat(16)10.61%
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)0.45%
Max Revenue beat(2)2.49%
Revenue beat(4)3
Avg Revenue beat(4)0.98%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)2.49%
Revenue beat(8)4
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)7
Avg Revenue beat(16)0.6%
PT rev (1m)0%
PT rev (3m)24.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.83 | ||
| P/FCF | 32.95 | ||
| P/OCF | 11.3 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.3 |
EPS(TTM)0.25
EY5.98%
EPS(NY)0.39
Fwd EY9.26%
FCF(TTM)0.13
FCFY3.03%
OCF(TTM)0.37
OCFY8.85%
SpS5.01
BVpS3.68
TBVpS-2.79
PEG (NY)1.29
PEG (5Y)N/A
Graham Number4.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.14% | ||
| ROE | -5.66% | ||
| ROCE | 8.18% | ||
| ROIC | 5.69% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 26.24% | ||
| OM | 14.38% | ||
| PM (TTM) | N/A | ||
| GM | 43.03% | ||
| FCFM | 2.53% |
ROA(3y)1.82%
ROA(5y)1.25%
ROE(3y)5.52%
ROE(5y)4.27%
ROIC(3y)4.83%
ROIC(5y)5.94%
ROICexc(3y)4.95%
ROICexc(5y)6.18%
ROICexgc(3y)20.46%
ROICexgc(5y)30.08%
ROCE(3y)6.95%
ROCE(5y)8.53%
ROICexgc growth 3Y-17.55%
ROICexgc growth 5YN/A
ROICexc growth 3Y-14.27%
ROICexc growth 5YN/A
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%
F-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 35.35 | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 143.92% | ||
| Cap/Sales | 4.86% | ||
| Interest Coverage | 1.78 | ||
| Cash Conversion | 41.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.45 |
F-Score4
WACC9.45%
ROIC/WACC0.6
Cap/Depr(3y)35.51%
Cap/Depr(5y)43.23%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)177.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
EPS Next Y12.93%
EPS Next 2Y39.13%
EPS Next 3Y32.23%
EPS Next 5Y33.45%
Revenue 1Y (TTM)-3.2%
Revenue growth 3Y-4.56%
Revenue growth 5Y10.31%
Sales Q2Q%3.23%
Revenue Next Year0.17%
Revenue Next 2Y2.59%
Revenue Next 3Y3.63%
Revenue Next 5Y5.03%
EBIT growth 1Y19.35%
EBIT growth 3Y-16.55%
EBIT growth 5Y6.17%
EBIT Next Year95.22%
EBIT Next 3Y30.02%
EBIT Next 5Y20.67%
FCF growth 1Y-70.15%
FCF growth 3Y84.83%
FCF growth 5Y114.65%
OCF growth 1Y-22.48%
OCF growth 3Y29.53%
OCF growth 5Y37.85%
HOLLEY INC / HLLY FAQ
What is the ChartMill fundamental rating of HOLLEY INC (HLLY) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HLLY.
What is the valuation status of HOLLEY INC (HLLY) stock?
ChartMill assigns a valuation rating of 5 / 10 to HOLLEY INC (HLLY). This can be considered as Fairly Valued.
Can you provide the profitability details for HOLLEY INC?
HOLLEY INC (HLLY) has a profitability rating of 5 / 10.
Can you provide the financial health for HLLY stock?
The financial health rating of HOLLEY INC (HLLY) is 3 / 10.