HOLLYSYS AUTOMATION TECHNOLO (HOLI) Fundamental Analysis & Valuation

NASDAQ:HOLI • VGG456671053

Current stock price

26.42 USD
+0.01 (+0.04%)
At close:
26.48 USD
+0.06 (+0.23%)
After Hours:

This HOLI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. HOLI Profitability Analysis

1.1 Basic Checks

  • In the past year HOLI was profitable.
  • 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.
HOLI Yearly Net Income VS EBIT VS OCF VS FCFHOLI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

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.
  • With a decent Return On Equity value of 6.13%, HOLI is doing good in the industry, outperforming 60.63% of the companies in the same industry.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for HOLI is below the industry average of 8.36%.
Industry RankSector 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%
HOLI Yearly ROA, ROE, ROICHOLI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

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.
  • 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 of 31.07%. This is comparable to the rest of the industry: HOLI outperforms 51.97% of its industry peers.
  • HOLI's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
HOLI Yearly Profit, Operating, Gross MarginsHOLI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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7

2. HOLI Health Analysis

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.
  • HOLI has a worse debt/assets ratio than last year.
HOLI Yearly Shares OutstandingHOLI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
HOLI Yearly Total Debt VS Total AssetsHOLI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 3.81 indicates that HOLI is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.81, HOLI is doing good in 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.
  • 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.
  • The Debt to Equity ratio of HOLI (0.04) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.04
Debt/FCF 1.59
Altman-Z 3.81
ROIC/WACC0.61
WACC7.49%
HOLI Yearly LT Debt VS Equity VS FCFHOLI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 3.02 indicates that HOLI has no problem at all paying its short term obligations.
  • HOLI has a better Current ratio (3.02) 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 better Quick ratio (2.80) than 74.02% of its industry peers.
Industry RankSector Rank
Current Ratio 3.02
Quick Ratio 2.8
HOLI Yearly Current Assets VS Current LiabilitesHOLI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. HOLI Growth Analysis

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

  • The Earnings Per Share is expected to grow by 17.20% on average over the next years. This is quite good.
  • 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

  • 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.
HOLI Yearly Revenue VS EstimatesHOLI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
HOLI Yearly EPS VS EstimatesHOLI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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5

4. HOLI Valuation Analysis

4.1 Price/Earnings Ratio

  • HOLI is valuated rather expensively with a Price/Earnings ratio of 21.83.
  • 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 24.88. HOLI is around the same levels.
  • HOLI is valuated reasonably with a Price/Forward Earnings ratio of 11.40.
  • Based on the Price/Forward Earnings ratio, HOLI is valued cheaply inside the industry as 87.40% of the companies are valued more expensively.
  • HOLI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 21.83
Fwd PE 11.4
HOLI Price Earnings VS Forward Price EarningsHOLI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 39.84
EV/EBITDA 12.54
HOLI Per share dataHOLI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. HOLI Dividend Analysis

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 0.46, HOLI pays a better dividend. On top of this HOLI pays more dividend than 94.49% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, HOLI has a dividend comparable with the average S&P500 company.
Industry RankSector 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
HOLI Yearly Dividends per shareHOLI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2022 0.1 0.2 0.3

5.3 Sustainability

DP0%
EPS Next 2Y17.2%
EPS Next 3YN/A
HOLI Yearly Income VS Free CF VS DividendHOLI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

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HOLI Fundamentals: All Metrics, Ratios and Statistics

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 IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)05-13
Earnings (Next)08-13
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the ChartMill fundamental rating of HOLLYSYS AUTOMATION TECHNOLO (HOLI) stock?

ChartMill assigns a fundamental rating of 5 / 10 to HOLI.


Can you provide the valuation status for HOLLYSYS AUTOMATION TECHNOLO?

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.


What is the earnings growth outlook for HOLLYSYS AUTOMATION TECHNOLO?

The Earnings per Share (EPS) of HOLLYSYS AUTOMATION TECHNOLO (HOLI) is expected to grow by 24.79% in the next year.


Is the dividend of HOLLYSYS AUTOMATION TECHNOLO sustainable?

The dividend rating of HOLLYSYS AUTOMATION TECHNOLO (HOLI) is 3 / 10 and the dividend payout ratio is 0%.