HOLLEY INC (HLLY) Stock Fundamental Analysis
NYSE:HLLY - New York Stock Exchange, Inc. - US43538H1032 - Common Stock
Overall HLLY gets a fundamental rating of 4 out of 10. We evaluated HLLY against 83 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HLLY was profitable.
HLLY had a positive operating cash flow in the past year.
Of the past 5 years HLLY 4 years were profitable.
Each year in the past 5 years HLLY had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.33%, HLLY is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
HLLY's Return On Equity of 3.43% is on the low side compared to the rest of the industry. HLLY is outperformed by 71.08% of its industry peers.
With a Return On Invested Capital value of 5.45%, HLLY is not doing good in the industry: 73.49% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for HLLY is below the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 3.43% | ||
| ROIC | 5.45% |
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
HLLY has a worse Profit Margin (2.55%) than 67.47% of its industry peers.
HLLY's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 11.66%, HLLY perfoms like the industry average, outperforming 46.99% of the companies in the same industry.
In the last couple of years the Operating Margin of HLLY has grown nicely.
HLLY has a better Gross Margin (38.02%) than 91.57% 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 | 11.66% | ||
| PM (TTM) | 2.55% | ||
| GM | 38.02% |
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.
Compared to 1 year ago, HLLY has more shares outstanding
HLLY has a better debt/assets ratio than last year.
2.2 Solvency
HLLY has an Altman-Z score of 1.33. This is a bad value and indicates that HLLY is not financially healthy and even has some risk of bankruptcy.
HLLY has a worse Altman-Z score (1.33) than 84.34% of its industry peers.
The Debt to FCF ratio of HLLY is 8.17, which is on the high side as it means it would take HLLY, 8.17 years of fcf income to pay off all of its debts.
HLLY has a Debt to FCF ratio of 8.17. This is in the lower half of the industry: HLLY underperforms 69.88% 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 worse Debt to Equity ratio (1.20) than 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 8.17 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.51
WACC10.76%
2.3 Liquidity
A Current Ratio of 2.93 indicates that HLLY has no problem at all paying its short term obligations.
HLLY has a Current ratio of 2.93. This is amongst the best in the industry. HLLY outperforms 84.34% of its industry peers.
HLLY has a Quick Ratio of 1.17. This is a normal value and indicates that HLLY is financially healthy and should not expect problems in meeting its short term obligations.
HLLY has a better Quick ratio (1.17) than 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 200.00% 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 -6.13% 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)200%
EPS 3Y-16.7%
EPS 5YN/A
EPS Q2Q%-133.33%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y9.37%
Revenue growth 5Y36.76%
Sales Q2Q%-14.37%
3.2 Future
HLLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.61% yearly.
HLLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y-37.79%
EPS Next 2Y10.63%
EPS Next 3Y18.88%
EPS Next 5Y27.61%
Revenue Next Year-8.73%
Revenue Next 2Y-2.66%
Revenue Next 3Y-0.16%
Revenue Next 5Y2.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 35.33 indicates a quite expensive valuation of HLLY.
Compared to the rest of the industry, the Price/Earnings ratio of HLLY indicates a slightly more expensive valuation: HLLY is more expensive than 69.88% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, HLLY is valued a bit more expensive.
With a Price/Forward Earnings ratio of 11.81, the valuation of HLLY can be described as very reasonable.
HLLY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HLLY to the average of the S&P500 Index (24.44), we can say HLLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.33 | ||
| Fwd PE | 11.81 |
4.2 Price Multiples
62.65% of the companies in the same industry are cheaper than HLLY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HLLY is valued a bit cheaper than 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.59 | ||
| EV/EBITDA | 9.25 |
4.3 Compensation for Growth
HLLY's earnings are expected to grow with 18.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.63%
EPS Next 3Y18.88%
5. Dividend
5.1 Amount
HLLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HOLLEY INC
NYSE:HLLY (1/21/2025, 8:04:00 PM)
After market: 3.18 0 (0%)3.18
+0.06 (+1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners41.86%
Inst Owner Change0.02%
Ins Owners2.73%
Ins Owner Change-0.04%
Market Cap380.96M
Analysts81.33
Price Target5.69 (78.93%)
Short Float %3.27%
Short Ratio4.43
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)-65.13%
Min EPS beat(2)-134.84%
Max EPS beat(2)4.58%
EPS beat(4)1
Avg EPS beat(4)-82.57%
Min EPS beat(4)-134.84%
Max EPS beat(4)4.58%
EPS beat(8)3
Avg EPS beat(8)-9.55%
EPS beat(12)4
Avg EPS beat(12)-24.04%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.14%
Min Revenue beat(2)-7.8%
Max Revenue beat(2)-2.48%
Revenue beat(4)1
Avg Revenue beat(4)-2.57%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)0.38%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)4
Avg Revenue beat(12)0.47%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-12.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-73.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-33.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.33 | ||
| Fwd PE | 11.81 | ||
| P/S | 0.62 | ||
| P/FCF | 5.59 | ||
| P/OCF | 5.15 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.25 |
EPS(TTM)0.09
EY2.83%
EPS(NY)0.27
Fwd EY8.47%
FCF(TTM)0.57
FCFY17.88%
OCF(TTM)0.62
OCFY19.43%
SpS5.16
BVpS3.83
TBVpS-2.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 3.43% | ||
| ROCE | 6.66% | ||
| ROIC | 5.45% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 26.87% | ||
| OM | 11.66% | ||
| PM (TTM) | 2.55% | ||
| GM | 38.02% | ||
| FCFM | 11.02% |
ROA(3y)1.74%
ROA(5y)N/A
ROE(3y)4.4%
ROE(5y)N/A
ROIC(3y)6.9%
ROIC(5y)N/A
ROICexc(3y)7.04%
ROICexc(5y)N/A
ROICexgc(3y)31.18%
ROICexgc(5y)N/A
ROCE(3y)8.42%
ROCE(5y)N/A
ROICexcg growth 3Y-20.6%
ROICexcg growth 5YN/A
ROICexc growth 3Y-7.82%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 8.17 | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 24.78% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 1.34 | ||
| Cash Conversion | 77.25% | ||
| Profit Quality | 432.53% | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 1.33 |
F-Score6
WACC10.76%
ROIC/WACC0.51
Cap/Depr(3y)46.11%
Cap/Depr(5y)46.52%
Cap/Sales(3y)1.69%
Cap/Sales(5y)1.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)200%
EPS 3Y-16.7%
EPS 5YN/A
EPS Q2Q%-133.33%
EPS Next Y-37.79%
EPS Next 2Y10.63%
EPS Next 3Y18.88%
EPS Next 5Y27.61%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y9.37%
Revenue growth 5Y36.76%
Sales Q2Q%-14.37%
Revenue Next Year-8.73%
Revenue Next 2Y-2.66%
Revenue Next 3Y-0.16%
Revenue Next 5Y2.27%
EBIT growth 1Y10.5%
EBIT growth 3Y-1.54%
EBIT growth 5Y75.54%
EBIT Next Year23.32%
EBIT Next 3Y11.61%
EBIT Next 5Y10.04%
FCF growth 1Y985.81%
FCF growth 3Y1.35%
FCF growth 5YN/A
OCF growth 1Y739.06%
OCF growth 3Y-0.12%
OCF growth 5YN/A