HOLLEY INC (HLLY) Stock Fundamental Analysis
NYSE:HLLY - New York Stock Exchange, Inc. - US43538H1032 - Common Stock - Currency: USD
HLLY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 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.
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.
HLLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HLLY (-2.11%) is worse than 76.54% of its industry peers.
HLLY has a worse Return On Equity (-5.69%) than 75.31% of its industry peers.
HLLY has a Return On Invested Capital of 5.52%. This is in the lower half of the industry: HLLY underperforms 71.60% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLLY is below the industry average of 9.05%.
The last Return On Invested Capital (5.52%) for HLLY is above the 3 year average (4.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -5.69% | ||
| ROIC | 5.52% |
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
Looking at the Operating Margin, with a value of 13.88%, HLLY belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
In the last couple of years the Operating Margin of HLLY has declined.
With an excellent Gross Margin value of 42.00%, HLLY belongs to the best of the industry, outperforming 95.06% of the companies in the same industry.
HLLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.88% | ||
| PM (TTM) | N/A | ||
| GM | 42% |
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
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 1.24, we must say that HLLY is in the distress zone and has some risk of bankruptcy.
HLLY has a worse Altman-Z score (1.24) than 87.65% of its industry peers.
The Debt to FCF ratio of HLLY is 79.58, which is on the high side as it means it would take HLLY, 79.58 years of fcf income to pay off all of its debts.
HLLY has a worse Debt to FCF ratio (79.58) than 79.01% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that HLLY has dependencies on debt financing.
HLLY has a worse Debt to Equity ratio (1.28) than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 79.58 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.58
WACC9.46%
2.3 Liquidity
A Current Ratio of 2.86 indicates that HLLY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.86, HLLY belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that HLLY may have some problems paying its short term obligations.
HLLY's Quick ratio of 0.98 is on the low side compared to the rest of the industry. HLLY is outperformed by 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.41% over the past year.
Looking at the last year, HLLY shows a decrease in Revenue. The Revenue has decreased by -7.66% in the last year.
HLLY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.31% yearly.
EPS 1Y (TTM)29.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.36%
Revenue 1Y (TTM)-7.66%
Revenue growth 3Y-4.56%
Revenue growth 5Y10.31%
Sales Q2Q%-3.53%
3.2 Future
HLLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.77% yearly.
The Revenue is expected to grow by 4.82% on average over the next years.
EPS Next Y2.64%
EPS Next 2Y24.92%
EPS Next 3Y37.52%
EPS Next 5Y33.77%
Revenue Next Year-1.47%
Revenue Next 2Y1.52%
Revenue Next 3Y3.83%
Revenue Next 5Y4.82%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.27, which indicates a very decent valuation of HLLY.
HLLY's Price/Earnings ratio is a bit cheaper when compared to the industry. HLLY is cheaper than 70.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of HLLY to the average of the S&P500 Index (27.45), we can say HLLY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.24, the valuation of HLLY can be described as very cheap.
HLLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HLLY is cheaper than 74.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. HLLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
HLLY's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLLY indicates a slightly more expensive valuation: HLLY is more expensive than 72.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.85 | ||
| EV/EBITDA | 7.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLLY does not grow enough to justify the current Price/Earnings ratio.
HLLY's earnings are expected to grow with 37.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.89
PEG (5Y)N/A
EPS Next 2Y24.92%
EPS Next 3Y37.52%
5. Dividend
5.1 Amount
HLLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.26
+0.01 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.23%
Inst Owner Change-48.12%
Ins Owners5.51%
Ins Owner Change2.62%
Market Cap269.14M
Analysts80
Price Target3.4 (50.44%)
Short Float %3.71%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)251.05%
Min EPS beat(2)-61.55%
Max EPS beat(2)563.65%
EPS beat(4)2
Avg EPS beat(4)92.96%
Min EPS beat(4)-134.84%
Max EPS beat(4)563.65%
EPS beat(8)3
Avg EPS beat(8)34.94%
EPS beat(12)4
Avg EPS beat(12)18.67%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)1.18%
Revenue beat(4)1
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)7
Avg Revenue beat(16)1.28%
PT rev (1m)-22.22%
PT rev (3m)-27.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.2%
EPS NY rev (1m)1.9%
EPS NY rev (3m)-21.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.45 | ||
| P/FCF | 38.85 | ||
| P/OCF | 13.32 | ||
| P/B | 0.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.29 |
EPS(TTM)0.22
EY9.73%
EPS(NY)0.31
Fwd EY13.81%
FCF(TTM)0.06
FCFY2.57%
OCF(TTM)0.17
OCFY7.51%
SpS5.01
BVpS3.57
TBVpS-2.98
PEG (NY)3.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -5.69% | ||
| ROCE | 7.93% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 25.61% | ||
| OM | 13.88% | ||
| PM (TTM) | N/A | ||
| GM | 42% | ||
| FCFM | 1.16% |
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%
ROICexcg growth 3Y-17.55%
ROICexcg 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 79.58 | ||
| Debt/EBITDA | 5.08 | ||
| Cap/Depr | 54.5% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 1.64 | ||
| Cash Conversion | 18.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.24 |
F-Score4
WACC9.46%
ROIC/WACC0.58
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)29.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-24.36%
EPS Next Y2.64%
EPS Next 2Y24.92%
EPS Next 3Y37.52%
EPS Next 5Y33.77%
Revenue 1Y (TTM)-7.66%
Revenue growth 3Y-4.56%
Revenue growth 5Y10.31%
Sales Q2Q%-3.53%
Revenue Next Year-1.47%
Revenue Next 2Y1.52%
Revenue Next 3Y3.83%
Revenue Next 5Y4.82%
EBIT growth 1Y3.16%
EBIT growth 3Y-16.55%
EBIT growth 5Y6.17%
EBIT Next Year81.28%
EBIT Next 3Y30.66%
EBIT Next 5Y21.11%
FCF growth 1Y161.57%
FCF growth 3Y84.83%
FCF growth 5Y114.65%
OCF growth 1Y941.92%
OCF growth 3Y29.53%
OCF growth 5Y37.85%