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%)
Taking everything into account, HOLI scores 5 out of 10 in our fundamental rating. HOLI was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. HOLI has an excellent financial health rating, but there are some minor concerns on its profitability. HOLI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HOLI was profitable.
In the past year HOLI had a positive cash flow from operations.
Each year in the past 5 years HOLI has been profitable.
In the past 5 years HOLI always reported a positive cash flow from operatings.
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.
Looking at the Return On Equity, with a value of 6.13%, HOLI is in the better half of the industry, outperforming 60.63% of the companies in the same industry.
HOLI has a Return On Invested Capital of 4.57%. This is in the better half of the industry: HOLI outperforms 61.42% of its industry peers.
HOLI had an Average Return On Invested Capital over the past 3 years of 6.19%. This is below the industry average of 8.98%.
| 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
HOLI has a Profit Margin of 9.52%. This is amongst the best in the industry. HOLI outperforms 82.68% of its industry peers.
HOLI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.63%, HOLI is doing good in the industry, outperforming 75.59% of the companies in the same industry.
In the last couple of years the Operating Margin of HOLI has declined.
HOLI's Gross Margin of 31.07% is in line compared to the rest of the industry. HOLI outperforms 51.97% of its industry peers.
In the last couple of years the Gross Margin of HOLI has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HOLI is destroying value.
Compared to 1 year ago, HOLI has about the same amount of shares outstanding.
Compared to 5 years ago, HOLI has more shares outstanding
The debt/assets ratio for HOLI is higher compared to a year ago.
2.2 Solvency
HOLI has an Altman-Z score of 3.81. This indicates that HOLI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.81, HOLI is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
The Debt to FCF ratio of HOLI is 1.59, which is an excellent value as it means it would take HOLI, only 1.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HOLI (1.59) is better than 72.44% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that HOLI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.04, HOLI is in line with its industry, outperforming 57.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.61
WACC7.49%
2.3 Liquidity
A Current Ratio of 3.02 indicates that HOLI has no problem at all paying its short term obligations.
The Current ratio of HOLI (3.02) is better than 63.78% of its industry peers.
A Quick Ratio of 2.80 indicates that HOLI has no problem at all paying its short term obligations.
HOLI has a Quick ratio of 2.80. This is in the better half of the industry: HOLI outperforms 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
HOLI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.98%.
HOLI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.30% yearly.
Looking at the last year, HOLI shows a small growth in Revenue. The Revenue has grown by 3.60% in the last year.
Measured over the past years, HOLI shows a small growth in Revenue. The Revenue has been growing by 7.53% on average per year.
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
HOLI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.20% yearly.
The Revenue is expected to grow by 15.31% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 21.83, the valuation of HOLI can be described as rather expensive.
70.08% of the companies in the same industry are more expensive than HOLI, based on the Price/Earnings ratio.
HOLI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.40, which indicates a very decent valuation of HOLI.
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.
When comparing the Price/Forward Earnings ratio of HOLI to the average of the S&P500 Index (34.98), we can say HOLI is valued rather cheaply.
| 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as HOLI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.84 | ||
| EV/EBITDA | 12.54 |
4.3 Compensation for Growth
HOLI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HOLI's earnings are expected to grow with 17.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y17.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.93%, HOLI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.18, HOLI pays a better dividend. On top of this HOLI pays more dividend than 94.49% of the companies listed in the same industry.
HOLI's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| 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.