HOLLEY INC (HLLY) Stock Fundamental Analysis
USA - NYSE:HLLY - US43538H1032 - Common Stock
3.07 USD
-0.02 (-0.65%)
3.08 USD
+0.01 (+0.33%)
HLLY gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. There are concerns on the financial health of HLLY while its profitability can be described as average. HLLY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HLLY had positive earnings in the past year.
In the past year HLLY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HLLY reported negative net income in multiple years.
HLLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLLY's Return On Assets of -2.62% is on the low side compared to the rest of the industry. HLLY is outperformed by 80.00% of its industry peers.
Looking at the Return On Equity, with a value of -6.94%, HLLY is doing worse than 76.25% of the companies in the same industry.
HLLY's Return On Invested Capital of 5.46% is on the low side compared to the rest of the industry. HLLY is outperformed by 73.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLLY is below the industry average of 8.51%.
The 3 year average ROIC (4.83%) for HLLY is below the current ROIC(5.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.62% | ||
| ROE | -6.94% | ||
| ROIC | 5.46% |
ROA(3y)1.82%
ROA(5y)1.25%
ROE(3y)5.52%
ROE(5y)4.27%
ROIC(3y)4.83%
ROIC(5y)5.94%
1.3 Margins
With an excellent Operating Margin value of 13.94%, HLLY belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
HLLY's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 42.07%, HLLY belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
HLLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.94% | ||
| PM (TTM) | N/A | ||
| GM | 42.07% |
OM growth 3Y-12.56%
OM growth 5Y-3.75%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.46%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
HLLY 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 HLLY has been increased compared to 1 year ago.
HLLY has a worse debt/assets ratio than last year.
2.2 Solvency
HLLY has an Altman-Z score of 1.34. This is a bad value and indicates that HLLY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HLLY (1.34) is worse than 86.25% of its industry peers.
The Debt to FCF ratio of HLLY is 55.25, which is on the high side as it means it would take HLLY, 55.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 55.25, HLLY is doing worse than 77.50% of the companies in the same industry.
A Debt/Equity ratio of 1.24 is on the high side and indicates that HLLY has dependencies on debt financing.
With a Debt to Equity ratio value of 1.24, HLLY is not doing good in the industry: 86.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 55.25 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.55
WACC9.92%
2.3 Liquidity
A Current Ratio of 2.93 indicates that HLLY has no problem at all paying its short term obligations.
HLLY has a Current ratio of 2.93. This is amongst the best in the industry. HLLY outperforms 87.50% of its industry peers.
A Quick Ratio of 1.18 indicates that HLLY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, HLLY is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
HLLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.54%, which is quite impressive.
The Revenue has decreased by -7.27% in the past year.
The Revenue has been growing by 10.31% on average over the past years. This is quite good.
EPS 1Y (TTM)61.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y-4.56%
Revenue growth 5Y10.31%
Sales Q2Q%-1.67%
3.2 Future
The Earnings Per Share is expected to grow by 33.77% on average over the next years. This is a very strong growth
Based on estimates for the next years, HLLY will show a small growth in Revenue. The Revenue will grow by 4.83% on average per year.
EPS Next Y18.76%
EPS Next 2Y35.79%
EPS Next 3Y32.23%
EPS Next 5Y33.77%
Revenue Next Year-1.36%
Revenue Next 2Y1.81%
Revenue Next 3Y2.94%
Revenue Next 5Y4.83%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.62, the valuation of HLLY can be described as correct.
HLLY's Price/Earnings ratio is a bit cheaper when compared to the industry. HLLY is cheaper than 62.50% of the companies in the same industry.
HLLY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.32, the valuation of HLLY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HLLY is valued a bit cheaper than 71.25% of the companies in the same industry.
HLLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
HLLY's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HLLY is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.15 | ||
| EV/EBITDA | 7.5 |
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 HLLY's earnings are expected to grow with 32.23% in the coming years.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y35.79%
EPS Next 3Y32.23%
5. Dividend
5.1 Amount
No dividends for HLLY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.07
-0.02 (-0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.6%
Inst Owner Change-2.77%
Ins Owners5.42%
Ins Owner Change9.45%
Market Cap369.94M
Analysts81.43
Price Target4 (30.29%)
Short Float %2.39%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.68%
Min EPS beat(2)-61.55%
Max EPS beat(2)-7.81%
EPS beat(4)1
Avg EPS beat(4)89.86%
Min EPS beat(4)-134.84%
Max EPS beat(4)563.65%
EPS beat(8)2
Avg EPS beat(8)20.19%
EPS beat(12)4
Avg EPS beat(12)21.36%
EPS beat(16)5
Avg EPS beat(16)12.06%
Revenue beat(2)2
Avg Revenue beat(2)0.81%
Min Revenue beat(2)0.45%
Max Revenue beat(2)1.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)1.18%
Revenue beat(8)3
Avg Revenue beat(8)-1.3%
Revenue beat(12)4
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)0.49%
PT rev (1m)15.2%
PT rev (3m)17.5%
EPS NQ rev (1m)19.26%
EPS NQ rev (3m)53.95%
EPS NY rev (1m)14.99%
EPS NY rev (3m)17.9%
Revenue NQ rev (1m)-2.15%
Revenue NQ rev (3m)-5.94%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 8.32 | ||
| P/S | 0.62 | ||
| P/FCF | 37.15 | ||
| P/OCF | 10.57 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.5 |
EPS(TTM)0.21
EY6.84%
EPS(NY)0.37
Fwd EY12.01%
FCF(TTM)0.08
FCFY2.69%
OCF(TTM)0.29
OCFY9.47%
SpS4.93
BVpS3.63
TBVpS-2.81
PEG (NY)0.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.62% | ||
| ROE | -6.94% | ||
| ROCE | 7.85% | ||
| ROIC | 5.46% | ||
| ROICexc | 5.81% | ||
| ROICexgc | 26.8% | ||
| OM | 13.94% | ||
| PM (TTM) | N/A | ||
| GM | 42.07% | ||
| FCFM | 1.68% |
ROA(3y)1.82%
ROA(5y)1.25%
ROE(3y)5.52%
ROE(5y)4.27%
ROIC(3y)4.83%
ROIC(5y)5.94%
ROICexc(3y)4.95%
ROICexc(5y)6.18%
ROICexgc(3y)20.46%
ROICexgc(5y)30.08%
ROCE(3y)6.95%
ROCE(5y)8.53%
ROICexcg growth 3Y-17.55%
ROICexcg growth 5YN/A
ROICexc growth 3Y-14.27%
ROICexc growth 5YN/A
OM growth 3Y-12.56%
OM growth 5Y-3.75%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.46%
GM growth 5Y-0.37%
F-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 55.25 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 79.04% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 1.84 | ||
| Cash Conversion | 30.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.34 |
F-Score4
WACC9.92%
ROIC/WACC0.55
Cap/Depr(3y)32.44%
Cap/Depr(5y)41.39%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.54%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-10%
EPS Next Y18.76%
EPS Next 2Y35.79%
EPS Next 3Y32.23%
EPS Next 5Y33.77%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y-4.56%
Revenue growth 5Y10.31%
Sales Q2Q%-1.67%
Revenue Next Year-1.36%
Revenue Next 2Y1.81%
Revenue Next 3Y2.94%
Revenue Next 5Y4.83%
EBIT growth 1Y6.5%
EBIT growth 3Y-16.55%
EBIT growth 5Y6.17%
EBIT Next Year83.36%
EBIT Next 3Y30.66%
EBIT Next 5Y20.1%
FCF growth 1Y-47.97%
FCF growth 3Y84.83%
FCF growth 5Y114.65%
OCF growth 1Y35.4%
OCF growth 3Y29.53%
OCF growth 5Y37.85%