HOLLYSYS AUTOMATION TECHNOLO (HOLI) Stock Fundamental Analysis
USA - NASDAQ:HOLI - VGG456671053 - Common Stock
26.42 USD
+0.01 (+0.04%)
26.48 USD
+0.06 (+0.23%)
Overall HOLI gets a fundamental rating of 5 out of 10. We evaluated HOLI against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While HOLI has a great health rating, its profitability is only average at the moment. HOLI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HOLI had positive earnings in the past year.
HOLI had a positive operating cash flow in the past year.
Each year in the past 5 years HOLI has been profitable.
HOLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HOLI's Return On Assets of 4.19% is fine compared to the rest of the industry. HOLI outperforms 66.14% of its industry peers.
HOLI has a better Return On Equity (6.13%) than 60.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.57%, HOLI is in the better half of the industry, outperforming 61.42% of the companies in the same industry.
HOLI had an Average Return On Invested Capital over the past 3 years of 6.19%. This is below the industry average of 9.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 6.13% | ||
| ROIC | 4.57% |
ROA(3y)5.65%
ROA(5y)6.47%
ROE(3y)8.04%
ROE(5y)9.09%
ROIC(3y)6.19%
ROIC(5y)7.91%
1.3 Margins
With an excellent Profit Margin value of 9.52%, HOLI belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
HOLI's Profit Margin has declined in the last couple of years.
HOLI's Operating Margin of 8.63% is fine compared to the rest of the industry. HOLI outperforms 75.59% of its industry peers.
In the last couple of years the Operating Margin of HOLI has declined.
HOLI has a Gross Margin (31.07%) which is in line with its industry peers.
HOLI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.63% | ||
| PM (TTM) | 9.52% | ||
| GM | 31.07% |
OM growth 3Y-16.97%
OM growth 5Y-11.65%
PM growth 3Y-4.47%
PM growth 5Y-7.05%
GM growth 3Y-4.62%
GM growth 5Y-2.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HOLI is destroying value.
The number of shares outstanding for HOLI remains at a similar level compared to 1 year ago.
The number of shares outstanding for HOLI has been increased compared to 5 years ago.
HOLI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.81 indicates that HOLI is not in any danger for bankruptcy at the moment.
HOLI has a Altman-Z score of 3.81. This is in the better half of the industry: HOLI outperforms 67.72% of its industry peers.
HOLI has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.59, HOLI is doing good in the industry, outperforming 72.44% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that HOLI is not too dependend on debt financing.
HOLI has a Debt to Equity ratio (0.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.61
WACC7.49%
2.3 Liquidity
HOLI has a Current Ratio of 3.02. This indicates that HOLI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.02, HOLI is in the better half of the industry, outperforming 63.78% of the companies in the same industry.
HOLI has a Quick Ratio of 2.80. This indicates that HOLI is financially healthy and has no problem in meeting its short term obligations.
HOLI has a better Quick ratio (2.80) than 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
The earnings per share for HOLI have decreased strongly by -27.98% in the last year.
Measured over the past years, HOLI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.30% on average per year.
The Revenue has been growing slightly by 3.60% in the past year.
HOLI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)-27.98%
EPS 3Y9.58%
EPS 5Y-0.3%
EPS Q2Q%-66.37%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y15.59%
Revenue growth 5Y7.53%
Sales Q2Q%3.48%
3.2 Future
The Earnings Per Share is expected to grow by 17.20% on average over the next years. This is quite good.
HOLI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.31% yearly.
EPS Next Y24.79%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.43%
Revenue Next 2Y12.33%
Revenue Next 3Y15.31%
Revenue Next 5YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.83 indicates a rather expensive valuation of HOLI.
Based on the Price/Earnings ratio, HOLI is valued a bit cheaper than 70.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. HOLI is around the same levels.
Based on the Price/Forward Earnings ratio of 11.40, the valuation of HOLI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOLI indicates a rather cheap valuation: HOLI is cheaper than 87.40% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. HOLI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HOLI is valued a bit cheaper than the industry average as 72.44% of the companies are valued more expensively.
HOLI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.84 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HOLI's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y17.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HOLI has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
HOLI's Dividend Yield is rather good when compared to the industry average which is at 2.06. HOLI pays more dividend than 94.49% of the companies in the same industry.
HOLI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
HOLI has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y17.2%
EPS Next 3YN/A
26.42
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners10.59%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.64B
Revenue(TTM)792.05M
Net Income(TTM)75.41M
Analysts43.33
Price Target24.74 (-6.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 11.4 | ||
| P/S | 2.07 | ||
| P/FCF | 39.84 | ||
| P/OCF | 23.19 | ||
| P/B | 1.34 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)1.21
EY4.58%
EPS(NY)2.32
Fwd EY8.77%
FCF(TTM)0.66
FCFY2.51%
OCF(TTM)1.14
OCFY4.31%
SpS12.73
BVpS19.78
TBVpS19.33
PEG (NY)0.88
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 6.13% | ||
| ROCE | 5.26% | ||
| ROIC | 4.57% | ||
| ROICexc | 10.03% | ||
| ROICexgc | 10.52% | ||
| OM | 8.63% | ||
| PM (TTM) | 9.52% | ||
| GM | 31.07% | ||
| FCFM | 5.21% |
ROA(3y)5.65%
ROA(5y)6.47%
ROE(3y)8.04%
ROE(5y)9.09%
ROIC(3y)6.19%
ROIC(5y)7.91%
ROICexc(3y)14.59%
ROICexc(5y)17.88%
ROICexgc(3y)15.16%
ROICexgc(5y)18.66%
ROCE(3y)7.13%
ROCE(5y)9.11%
ROICexgc growth 3Y-12.11%
ROICexgc growth 5Y-9.6%
ROICexc growth 3Y-13.32%
ROICexc growth 5Y-8.4%
OM growth 3Y-16.97%
OM growth 5Y-11.65%
PM growth 3Y-4.47%
PM growth 5Y-7.05%
GM growth 3Y-4.62%
GM growth 5Y-2.9%
F-Score2
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 276.05% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.61% | ||
| Profit Quality | 54.69% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 3.81 |
F-Score2
WACC7.49%
ROIC/WACC0.61
Cap/Depr(3y)270.81%
Cap/Depr(5y)206.75%
Cap/Sales(3y)4.01%
Cap/Sales(5y)3.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.98%
EPS 3Y9.58%
EPS 5Y-0.3%
EPS Q2Q%-66.37%
EPS Next Y24.79%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y15.59%
Revenue growth 5Y7.53%
Sales Q2Q%3.48%
Revenue Next Year9.43%
Revenue Next 2Y12.33%
Revenue Next 3Y15.31%
Revenue Next 5YN/A
EBIT growth 1Y-27.71%
EBIT growth 3Y-4.02%
EBIT growth 5Y-5%
EBIT Next Year41.62%
EBIT Next 3Y17.8%
EBIT Next 5YN/A
FCF growth 1Y103.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y52.83%
OCF growth 3Y-49.04%
OCF growth 5Y-26.18%
HOLLYSYS AUTOMATION TECHNOLO / HOLI FAQ
Can you provide the ChartMill fundamental rating for HOLLYSYS AUTOMATION TECHNOLO?
ChartMill assigns a fundamental rating of 5 / 10 to HOLI.
What is the valuation status of HOLLYSYS AUTOMATION TECHNOLO (HOLI) stock?
ChartMill assigns a valuation rating of 5 / 10 to HOLLYSYS AUTOMATION TECHNOLO (HOLI). This can be considered as Fairly Valued.
Can you provide the profitability details for HOLLYSYS AUTOMATION TECHNOLO?
HOLLYSYS AUTOMATION TECHNOLO (HOLI) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for HOLI stock?
The Price/Earnings (PE) ratio for HOLLYSYS AUTOMATION TECHNOLO (HOLI) is 21.83 and the Price/Book (PB) ratio is 1.34.
How financially healthy is HOLLYSYS AUTOMATION TECHNOLO?
The financial health rating of HOLLYSYS AUTOMATION TECHNOLO (HOLI) is 7 / 10.