HONGLI GROUP INC (HLP)
KYG4594M1087 - Common Stock
Taking everything into account, HLP scores 3 out of 10 in our fundamental rating. HLP was compared to 156 industry peers in the Metals & Mining industry. There are concerns on the financial health of HLP while its profitability can be described as average. HLP has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HLP was profitable.
HLP had a positive operating cash flow in the past year.
Each year in the past 5 years HLP has been profitable.
Each year in the past 5 years HLP had a positive operating cash flow.
1.2 Ratios
HLP's Return On Assets of 5.17% is fine compared to the rest of the industry. HLP outperforms 76.92% of its industry peers.
HLP has a better Return On Equity (7.87%) than 74.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.83%, HLP is in the better half of the industry, outperforming 66.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HLP is in line with the industry average of 8.42%.
The last Return On Invested Capital (5.83%) for HLP is well below the 3 year average (10.16%), which needs to be investigated, but indicates that HLP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 7.87% | ||
| ROIC | 5.83% |
ROA(3y)8.48%
ROA(5y)12.85%
ROE(3y)17.9%
ROE(5y)24.84%
ROIC(3y)10.16%
ROIC(5y)14.57%
1.3 Margins
Looking at the Profit Margin, with a value of 6.67%, HLP is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
HLP's Profit Margin has declined in the last couple of years.
HLP's Operating Margin of 7.25% is in line compared to the rest of the industry. HLP outperforms 57.05% of its industry peers.
In the last couple of years the Operating Margin of HLP has declined.
Looking at the Gross Margin, with a value of 33.28%, HLP is in the better half of the industry, outperforming 78.21% of the companies in the same industry.
HLP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.25% | ||
| PM (TTM) | 6.67% | ||
| GM | 33.28% |
OM growth 3Y-33.95%
OM growth 5YN/A
PM growth 3Y-37.07%
PM growth 5YN/A
GM growth 3Y-6.31%
GM growth 5YN/A
2. Health
2.1 Basic Checks
HLP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HLP has more shares outstanding
The debt/assets ratio for HLP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.88 indicates that HLP is not a great score, but indicates only limited risk for bankruptcy at the moment.
HLP has a Altman-Z score (2.88) which is in line with its industry peers.
The Debt to FCF ratio of HLP is 431.15, which is on the high side as it means it would take HLP, 431.15 years of fcf income to pay off all of its debts.
HLP has a Debt to FCF ratio (431.15) which is comparable to the rest of the industry.
HLP has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
HLP has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: HLP outperforms 51.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 431.15 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.77
WACC7.62%
2.3 Liquidity
HLP has a Current Ratio of 1.41. This is a normal value and indicates that HLP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.41, HLP is doing worse than 75.64% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that HLP should not have too much problems paying its short term obligations.
The Quick ratio of HLP (1.10) is worse than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
HLP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.56%.
Measured over the past years, HLP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.35% on average per year.
HLP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.03%.
HLP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.75% yearly.
EPS 1Y (TTM)-63.56%
EPS 3Y-28.35%
EPS 5YN/A
EPS Q2Q%-69.73%
Revenue 1Y (TTM)-19.03%
Revenue growth 3Y12.75%
Revenue growth 5YN/A
Sales Q2Q%-21.13%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.87 indicates a reasonable valuation of HLP.
Compared to the rest of the industry, the Price/Earnings ratio of HLP indicates a rather cheap valuation: HLP is cheaper than 80.77% of the companies listed in the same industry.
HLP is valuated cheaply when we compare the Price/Earnings ratio to 30.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLP is valued a bit cheaper than the industry average as 62.82% of the companies are valued more expensively.
HLP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1031.1 | ||
| EV/EBITDA | 10.9 |
4.3 Compensation for Growth
The decent profitability rating of HLP may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
HLP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HONGLI GROUP INC
NASDAQ:HLP (9/16/2024, 2:33:57 PM)
1.78
-0.01 (-0.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.79M
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 | 11.87 | ||
| Fwd PE | N/A | ||
| 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 | 5.17% | ||
| ROE | 7.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.25% | ||
| PM (TTM) | 6.67% | ||
| GM | 33.28% | ||
| 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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.1 | ||
| 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)-63.56%
EPS 3Y-28.35%
EPS 5Y
EPS Q2Q%
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.03%
Revenue growth 3Y12.75%
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