HOLLYSYS AUTOMATION TECHNOLO (HOLI) Stock Fundamental Analysis
NASDAQ:HOLI - Nasdaq - VGG456671053 - Common Stock - Currency: USD
Taking everything into account, HOLI scores 5 out of 10 in our fundamental rating. HOLI was compared to 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
In the past year HOLI was profitable.
HOLI had a positive operating cash flow in the past year.
Each year in the past 5 years HOLI has been profitable.
Each year in the past 5 years HOLI had a positive operating cash flow.
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's Return On Equity of 6.13% is fine compared to the rest of the industry. HOLI outperforms 60.63% of its industry peers.
HOLI's Return On Invested Capital of 4.57% is fine compared to the rest 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 8.97%.
| 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 better Profit Margin (9.52%) than 82.68% of its industry peers.
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.
HOLI's Operating Margin has declined in the last couple of years.
The Gross Margin of HOLI (31.07%) 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.
The number of shares outstanding for HOLI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, HOLI has more shares outstanding
HOLI has a worse debt/assets ratio than last year.
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.
HOLI's Altman-Z score of 3.81 is fine compared to the rest 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.
HOLI has a better Debt to FCF ratio (1.59) than 72.44% of its industry peers.
HOLI has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
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.
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.
A Quick Ratio of 2.80 indicates that HOLI has no problem at all paying 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
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.
The Revenue has been growing slightly by 7.53% on average over the past years.
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.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
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 28.47. HOLI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.40, the valuation of HOLI can be described as reasonable.
87.40% of the companies in the same industry are more expensive than HOLI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HOLI to the average of the S&P500 Index (92.74), we can say HOLI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
72.44% of the companies in the same industry are more expensive than HOLI, based on the Enterprise Value to EBITDA ratio.
HOLI's Price/Free Cash Flow is on the same level as 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
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 1.86, 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 2.28, 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 Owners10.59%
Inst Owner Change-0.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.64B
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
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%
ROICexcg growth 3Y-12.11%
ROICexcg 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%