HOLLYSYS AUTOMATION TECHNOLO (HOLI)
VGG456671053 - Common Stock
We assign a fundamental rating of 5 out of 10 to HOLI. HOLI was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. HOLI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HOLI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HOLI had positive earnings in the past year.
In the past year HOLI had a positive cash flow from operations.
In the past 5 years HOLI has always been profitable.
HOLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.19%, HOLI is doing good in the industry, outperforming 66.14% of the companies in the same industry.
HOLI's Return On Equity of 6.13% is fine compared to the rest of the industry. HOLI outperforms 60.63% of its industry peers.
With a decent Return On Invested Capital value of 4.57%, HOLI is doing good in the industry, outperforming 61.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HOLI is below the industry average of 8.68%.
| 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's Profit Margin of 9.52% is amongst the best of the industry. HOLI outperforms 82.68% of its industry peers.
HOLI's Profit Margin has declined in the last couple of years.
HOLI has a better Operating Margin (8.63%) than 75.59% of its industry peers.
HOLI's Operating Margin has declined in the last couple of years.
HOLI has a Gross Margin (31.07%) which is comparable to the rest of the industry.
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
HOLI 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, HOLI has about the same amount of shares outstanding.
Compared to 5 years ago, HOLI has more shares outstanding
Compared to 1 year ago, HOLI has a worse debt to assets ratio.
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.
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.
HOLI has a better Debt to FCF ratio (1.59) than 72.44% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that HOLI is not too dependend on debt financing.
HOLI's Debt to Equity ratio of 0.04 is in line compared to the rest of the industry. HOLI outperforms 57.48% of 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
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.
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 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.
Based on estimates for the next years, HOLI will show a quite strong growth in Revenue. The Revenue will grow by 15.31% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
The average S&P500 Price/Earnings ratio is at 28.96. HOLI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.40, the valuation of HOLI can be described as very 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.
When comparing the Price/Forward Earnings ratio of HOLI to the average of the S&P500 Index (23.82), 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 72.44% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HOLI is on the same level as its industry peers.
| 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.
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
With a Yearly Dividend Yield of 1.93%, HOLI has a reasonable but not impressive dividend return.
HOLI's Dividend Yield is rather good when compared to the industry average which is at 1.95. HOLI pays more dividend than 94.49% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, HOLI has a dividend comparable with the average S&P500 company.
| 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
HOLLYSYS AUTOMATION TECHNOLO
NASDAQ:HOLI (7/25/2024, 8:00:02 PM)
After market: 26.48 +0.06 (+0.23%)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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 11.4 | ||
| 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)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 6.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.63% | ||
| PM (TTM) | 9.52% | ||
| GM | 31.07% | ||
| 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.8 | ||
| 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)-27.98%
EPS 3Y9.58%
EPS 5Y
EPS Q2Q%
EPS Next Y24.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.6%
Revenue growth 3Y15.59%
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
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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