HILLMAN SOLUTIONS CORP (HLMN) Stock Fundamental Analysis
NASDAQ:HLMN - Nasdaq - US4316361090 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to HLMN. HLMN was compared to 128 industry peers in the Machinery industry. While HLMN is still in line with the averages on profitability rating, there are concerns on its financial health. HLMN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HLMN was profitable.
HLMN had a positive operating cash flow in the past year.
In the past 5 years HLMN reported 4 times negative net income.
HLMN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.74%, HLMN is not doing good in the industry: 63.28% of the companies in the same industry are doing better.
HLMN's Return On Equity of 1.46% is on the low side compared to the rest of the industry. HLMN is outperformed by 62.50% of its industry peers.
The Return On Invested Capital of HLMN (2.78%) is worse than 67.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLMN is significantly below the industry average of 10.67%.
The last Return On Invested Capital (2.78%) for HLMN is above the 3 year average (1.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 1.46% | ||
| ROIC | 2.78% |
ROA(3y)-0.11%
ROA(5y)-0.56%
ROE(3y)-0.26%
ROE(5y)-2.17%
ROIC(3y)1.94%
ROIC(5y)1.62%
1.3 Margins
HLMN's Profit Margin of 1.17% is on the low side compared to the rest of the industry. HLMN is outperformed by 63.28% of its industry peers.
HLMN has a Operating Margin (6.03%) which is in line with its industry peers.
HLMN's Operating Margin has improved in the last couple of years.
HLMN has a better Gross Margin (48.07%) than 90.63% of its industry peers.
In the last couple of years the Gross Margin of HLMN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.03% | ||
| PM (TTM) | 1.17% | ||
| GM | 48.07% |
OM growth 3Y102.86%
OM growth 5Y36.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
HLMN 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, HLMN has more shares outstanding
Compared to 5 years ago, HLMN has more shares outstanding
The debt/assets ratio for HLMN has been reduced compared to a year ago.
2.2 Solvency
HLMN has an Altman-Z score of 1.58. This is a bad value and indicates that HLMN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HLMN (1.58) is worse than 70.31% of its industry peers.
HLMN has a debt to FCF ratio of 7.18. This is a slightly negative value and a sign of low solvency as HLMN would need 7.18 years to pay back of all of its debts.
The Debt to FCF ratio of HLMN (7.18) is comparable to the rest of the industry.
HLMN has a Debt/Equity ratio of 0.59. This is a neutral value indicating HLMN is somewhat dependend on debt financing.
HLMN has a worse Debt to Equity ratio (0.59) than 60.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.3
WACC9.35%
2.3 Liquidity
HLMN has a Current Ratio of 2.26. This indicates that HLMN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.26, HLMN is in line with its industry, outperforming 57.81% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that HLMN may have some problems paying its short term obligations.
HLMN has a Quick ratio of 0.67. This is amonst the worse of the industry: HLMN underperforms 88.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
HLMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.00%, which is quite impressive.
The Revenue has decreased by -0.26% in the past year.
HLMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.93% yearly.
EPS 1Y (TTM)30%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y1.08%
Revenue growth 5Y3.93%
Sales Q2Q%0.5%
3.2 Future
Based on estimates for the next years, HLMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.20% on average per year.
Based on estimates for the next years, HLMN will show a small growth in Revenue. The Revenue will grow by 4.50% on average per year.
EPS Next Y10.43%
EPS Next 2Y12.12%
EPS Next 3Y17.01%
EPS Next 5Y16.2%
Revenue Next Year3.79%
Revenue Next 2Y4.14%
Revenue Next 3Y4.74%
Revenue Next 5Y4.5%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.67, which indicates a correct valuation of HLMN.
Compared to the rest of the industry, the Price/Earnings ratio of HLMN indicates a somewhat cheap valuation: HLMN is cheaper than 71.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. HLMN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.29 indicates a correct valuation of HLMN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLMN indicates a somewhat cheap valuation: HLMN is cheaper than 77.34% of the companies listed in the same industry.
HLMN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 13.29 |
4.2 Price Multiples
69.53% of the companies in the same industry are more expensive than HLMN, based on the Enterprise Value to EBITDA ratio.
HLMN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HLMN is cheaper than 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.35 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as HLMN's earnings are expected to grow with 17.01% in the coming years.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y12.12%
EPS Next 3Y17.01%
5. Dividend
5.1 Amount
HLMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.63
+0.08 (+1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.7%
Inst Owner Change0%
Ins Owners1.05%
Ins Owner Change2.87%
Market Cap1.51B
Analysts81.43
Price Target12.82 (68.02%)
Short Float %1.8%
Short Ratio3.66
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)0
Avg EPS beat(2)-4.8%
Min EPS beat(2)-7.7%
Max EPS beat(2)-1.89%
EPS beat(4)2
Avg EPS beat(4)4.19%
Min EPS beat(4)-7.7%
Max EPS beat(4)14.75%
EPS beat(8)5
Avg EPS beat(8)39%
EPS beat(12)9
Avg EPS beat(12)111.01%
EPS beat(16)11
Avg EPS beat(16)213.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-2.16%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)-0.57%
Revenue beat(8)0
Avg Revenue beat(8)-2.88%
Revenue beat(12)0
Avg Revenue beat(12)-2.79%
Revenue beat(16)3
Avg Revenue beat(16)-1.52%
PT rev (1m)-5.34%
PT rev (3m)-7.94%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)-3.49%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 13.29 | ||
| P/S | 1.02 | ||
| P/FCF | 15.35 | ||
| P/OCF | 8.21 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.9 |
EPS(TTM)0.52
EY6.82%
EPS(NY)0.57
Fwd EY7.53%
FCF(TTM)0.5
FCFY6.52%
OCF(TTM)0.93
OCFY12.18%
SpS7.46
BVpS5.99
TBVpS-1.28
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.74% | ||
| ROE | 1.46% | ||
| ROCE | 4.28% | ||
| ROIC | 2.78% | ||
| ROICexc | 2.84% | ||
| ROICexgc | 9.65% | ||
| OM | 6.03% | ||
| PM (TTM) | 1.17% | ||
| GM | 48.07% | ||
| FCFM | 6.66% |
ROA(3y)-0.11%
ROA(5y)-0.56%
ROE(3y)-0.26%
ROE(5y)-2.17%
ROIC(3y)1.94%
ROIC(5y)1.62%
ROICexc(3y)1.97%
ROICexc(5y)1.64%
ROICexgc(3y)6.76%
ROICexgc(5y)6%
ROCE(3y)2.98%
ROCE(5y)2.49%
ROICexcg growth 3Y110.94%
ROICexcg growth 5Y37.21%
ROICexc growth 3Y112.78%
ROICexc growth 5Y43.98%
OM growth 3Y102.86%
OM growth 5Y36.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y2.32%
F-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 65.53% | ||
| Cap/Sales | 5.79% | ||
| Interest Coverage | 2.09 | ||
| Cash Conversion | 83.78% | ||
| Profit Quality | 568.63% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.58 |
F-Score6
WACC9.35%
ROIC/WACC0.3
Cap/Depr(3y)59.2%
Cap/Depr(5y)51.21%
Cap/Sales(3y)4.97%
Cap/Sales(5y)4.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y10.43%
EPS Next 2Y12.12%
EPS Next 3Y17.01%
EPS Next 5Y16.2%
Revenue 1Y (TTM)-0.26%
Revenue growth 3Y1.08%
Revenue growth 5Y3.93%
Sales Q2Q%0.5%
Revenue Next Year3.79%
Revenue Next 2Y4.14%
Revenue Next 3Y4.74%
Revenue Next 5Y4.5%
EBIT growth 1Y45.81%
EBIT growth 3Y105.05%
EBIT growth 5Y41.6%
EBIT Next Year152.15%
EBIT Next 3Y44.11%
EBIT Next 5Y27.35%
FCF growth 1Y-43.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.98%
OCF growth 3YN/A
OCF growth 5Y28.46%