HOLLEY INC (HLLY) Stock Fundamental Analysis
NYSE:HLLY - New York Stock Exchange, Inc. - US43538H1032 - Common Stock - Currency: USD
Taking everything into account, HLLY scores 3 out of 10 in our fundamental rating. HLLY was compared to 80 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 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.
The reported net income has been mixed in the past 5 years: HLLY reported negative net income in multiple years.
In the past 5 years HLLY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.11%, HLLY is doing worse than 77.50% of the companies in the same industry.
HLLY's Return On Equity of -5.69% is on the low side compared to the rest of the industry. HLLY is outperformed by 76.25% of its industry peers.
With a Return On Invested Capital value of 5.52%, HLLY is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for HLLY is below the industry average of 9.12%.
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
The Operating Margin of HLLY (13.88%) is better than 96.25% of its industry peers.
HLLY's Operating Margin has declined in the last couple of years.
HLLY's Gross Margin of 42.00% is amongst the best of the industry. HLLY outperforms 95.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HLLY is destroying value.
HLLY has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, HLLY has a worse debt to assets ratio.
2.2 Solvency
HLLY has an Altman-Z score of 1.24. This is a bad value and indicates that HLLY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HLLY (1.24) is worse than 87.50% 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 78.75% 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.
Looking at the Debt to Equity ratio, with a value of 1.28, HLLY is doing worse than 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 79.58 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.58
WACC9.45%
2.3 Liquidity
HLLY has a Current Ratio of 2.86. 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 2.86, HLLY belongs to the top of the industry, outperforming 85.00% 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.
Looking at the Quick ratio, with a value of 0.98, HLLY is doing worse than 83.75% of the companies in the same industry.
| 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.
The Revenue has been growing by 10.31% on average over the past years. This is quite good.
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
Based on estimates for the next years, HLLY will show a very strong growth in Earnings Per Share. The EPS will grow by 33.77% on average per year.
The Revenue is expected to grow by 4.82% on average over the next years.
EPS Next Y3.28%
EPS Next 2Y25.18%
EPS Next 3Y37.97%
EPS Next 5Y33.77%
Revenue Next Year-1.41%
Revenue Next 2Y1.56%
Revenue Next 3Y3.93%
Revenue Next 5Y4.82%
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
HLLY is valuated reasonably with a Price/Earnings ratio of 10.09.
Based on the Price/Earnings ratio, HLLY is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HLLY to the average of the S&P500 Index (27.50), we can say HLLY is valued rather cheaply.
The Price/Forward Earnings ratio is 7.08, 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 76.25% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.44. HLLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 7.08 |
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 73.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.17 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HLLY's earnings are expected to grow with 37.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.08
PEG (5Y)N/A
EPS Next 2Y25.18%
EPS Next 3Y37.97%
5. Dividend
5.1 Amount
No dividends for HLLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.22
-0.01 (-0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.23%
Inst Owner Change0%
Ins Owners5.51%
Ins Owner Change2.62%
Market Cap264.38M
Analysts80
Price Target3.4 (53.15%)
Short Float %4.27%
Short Ratio4.67
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)0%
PT rev (3m)-27.08%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)-7.99%
EPS NY rev (1m)2.53%
EPS NY rev (3m)-21.36%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 7.08 | ||
| P/S | 0.44 | ||
| P/FCF | 38.17 | ||
| P/OCF | 13.08 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.26 |
EPS(TTM)0.22
EY9.91%
EPS(NY)0.31
Fwd EY14.12%
FCF(TTM)0.06
FCFY2.62%
OCF(TTM)0.17
OCFY7.64%
SpS5.01
BVpS3.57
TBVpS-2.98
PEG (NY)3.08
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
WACC9.45%
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 Y3.28%
EPS Next 2Y25.18%
EPS Next 3Y37.97%
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-1.41%
Revenue Next 2Y1.56%
Revenue Next 3Y3.93%
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%