HOLLEY INC (HLLY) Stock Fundamental Analysis
NYSE:HLLY - New York Stock Exchange, Inc. - US43538H1032 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HLLY. HLLY was compared to 80 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 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.
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
HLLY's Return On Assets of -2.11% is on the low side compared to the rest of the industry. HLLY is outperformed by 77.50% of its industry peers.
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.
HLLY has a Return On Invested Capital of 5.52%. This is in the lower half of the industry: HLLY underperforms 72.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLLY is below the industry average of 9.12%.
The 3 year average ROIC (4.83%) for HLLY is below the current ROIC(5.52%), indicating increased profibility in the last year.
| 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
HLLY has a Operating Margin of 13.88%. This is amongst the best in the industry. HLLY outperforms 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
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
The debt/assets ratio for HLLY is higher compared to a year ago.
2.2 Solvency
HLLY has an Altman-Z score of 1.23. This is a bad value and indicates that HLLY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.23, HLLY is doing worse than 87.50% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 79.58, HLLY is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
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 | 1.23 |
ROIC/WACC0.59
WACC9.39%
2.3 Liquidity
A Current Ratio of 2.86 indicates that HLLY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.86, HLLY belongs to the best 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.
HLLY has a worse Quick ratio (0.98) than 83.75% 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.
HLLY shows a decrease in Revenue. In the last year, the revenue decreased by -7.66%.
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
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.
HLLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.82% yearly.
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 9.95, which indicates a very decent valuation of HLLY.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.29, HLLY is valued rather cheaply.
A Price/Forward Earnings ratio of 7.02 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, HLLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HLLY.
Based on the Price/Free Cash Flow ratio, HLLY is valued a bit more expensive than 71.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.65 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HLLY's earnings are expected to grow with 37.52% in the coming years.
PEG (NY)3.77
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 |
2.19
-0.07 (-3.1%)
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 Cap260.81M
Analysts80
Price Target3.4 (55.25%)
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 | 9.95 | ||
| Fwd PE | 7.02 | ||
| P/S | 0.44 | ||
| P/FCF | 37.65 | ||
| P/OCF | 12.91 | ||
| P/B | 0.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.21 |
EPS(TTM)0.22
EY10.05%
EPS(NY)0.31
Fwd EY14.25%
FCF(TTM)0.06
FCFY2.66%
OCF(TTM)0.17
OCFY7.75%
SpS5.01
BVpS3.57
TBVpS-2.98
PEG (NY)3.77
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 | 1.23 |
F-Score4
WACC9.39%
ROIC/WACC0.59
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%