HOLLEY INC (HLLY)
US43538H1032 - Common Stock
We assign a fundamental rating of 4 out of 10 to HLLY. HLLY was compared to 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.
HLLY had a positive operating cash flow in the past year.
HLLY had positive earnings in 4 of the past 5 years.
HLLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLLY has a Return On Assets of 1.91%. This is in the lower half of the industry: HLLY underperforms 72.84% of its industry peers.
HLLY has a worse Return On Equity (4.93%) than 70.37% of its industry peers.
HLLY has a worse Return On Invested Capital (5.84%) than 74.07% of its industry peers.
HLLY had an Average Return On Invested Capital over the past 3 years of 6.90%. This is below the industry average of 9.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 4.93% | ||
| ROIC | 5.84% |
ROA(3y)1.74%
ROA(5y)N/A
ROE(3y)4.4%
ROE(5y)N/A
ROIC(3y)6.9%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.57%, HLLY is not doing good in the industry: 65.43% of the companies in the same industry are doing better.
HLLY's Profit Margin has declined in the last couple of years.
HLLY has a Operating Margin (12.14%) which is comparable to the rest of the industry.
HLLY's Operating Margin has improved in the last couple of years.
The Gross Margin of HLLY (37.64%) is better than 93.83% 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 | 12.14% | ||
| PM (TTM) | 3.57% | ||
| GM | 37.64% |
OM growth 3Y-9.98%
OM growth 5Y28.36%
PM growth 3Y-23.62%
PM growth 5YN/A
GM growth 3Y-2.04%
GM growth 5Y0.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLLY is destroying value.
The number of shares outstanding for HLLY has been increased compared to 1 year ago.
HLLY has a better debt/assets ratio than last year.
2.2 Solvency
HLLY has an Altman-Z score of 1.32. 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 1.32, HLLY is doing worse than 85.19% of the companies in the same industry.
The Debt to FCF ratio of HLLY is 6.02, which is on the high side as it means it would take HLLY, 6.02 years of fcf income to pay off all of its debts.
HLLY has a worse Debt to FCF ratio (6.02) than 71.60% of its industry peers.
HLLY has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.18, HLLY is not doing good in the industry: 86.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 6.02 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.53
WACC11.1%
2.3 Liquidity
A Current Ratio of 2.80 indicates that HLLY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.80, HLLY belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that HLLY should not have too much problems paying its short term obligations.
HLLY has a Quick ratio of 1.19. This is in the better half of the industry: HLLY outperforms 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 471.43% over the past year.
The earnings per share for HLLY have been decreasing by -16.70% on average. This is quite bad
Looking at the last year, HLLY shows a decrease in Revenue. The Revenue has decreased by -2.46% in the last year.
HLLY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.76% yearly.
EPS 1Y (TTM)471.43%
EPS 3Y-16.7%
EPS 5YN/A
EPS Q2Q%-28.57%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y9.37%
Revenue growth 5Y36.76%
Sales Q2Q%-3.29%
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 33.07% on average per year.
HLLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y-6.5%
EPS Next 2Y28.99%
EPS Next 3Y37.44%
EPS Next 5Y33.07%
Revenue Next Year-5.1%
Revenue Next 2Y-0.1%
Revenue Next 3Y1.67%
Revenue Next 5Y4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 21.23, HLLY is valued on the expensive side.
HLLY's Price/Earnings is on the same level as the industry average.
HLLY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.84.
Based on the Price/Forward Earnings ratio of 7.54, 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 64.20% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HLLY to the average of the S&P500 Index (22.57), we can say HLLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 7.54 |
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 cheaply inside the industry as 95.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | 8.21 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HLLY's earnings are expected to grow with 37.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.99%
EPS Next 3Y37.44%
5. Dividend
5.1 Amount
No dividends for HLLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HOLLEY INC
NYSE:HLLY (10/29/2024, 8:15:54 PM)
After market: 2.76 0 (0%)2.76
-0.05 (-1.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap330.59M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 7.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.91% | ||
| ROE | 4.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.14% | ||
| PM (TTM) | 3.57% | ||
| GM | 37.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.8 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)471.43%
EPS 3Y-16.7%
EPS 5Y
EPS Q2Q%
EPS Next Y-6.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y9.37%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y