HOLLEY INC (HLLY) Stock Fundamental Analysis
NYSE:HLLY - New York Stock Exchange, Inc. - US43538H1032 - Common Stock - Currency: USD
HLLY gets a fundamental rating of 3 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
In the past year HLLY was profitable.
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.
Each year in the past 5 years HLLY had a positive operating cash flow.
1.2 Ratios
HLLY's Return On Assets of -2.11% is on the low side compared to the rest of the industry. HLLY is outperformed by 78.75% of its industry peers.
With a Return On Equity value of -5.69%, HLLY is not doing good in the industry: 76.25% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 5.52%, HLLY is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for HLLY is below the industry average of 8.70%.
The 3 year average ROIC (4.83%) for HLLY is below the current ROIC(5.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -5.69% | ||
| ROIC | 5.52% |
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 13.88%, HLLY belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
In the last couple of years the Operating Margin of HLLY has declined.
With an excellent Gross Margin value of 42.00%, 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 | 13.88% | ||
| PM (TTM) | N/A | ||
| GM | 42% |
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
Based on the Altman-Z score of 1.30, we must say that HLLY is in the distress zone and has some risk of bankruptcy.
HLLY has a worse Altman-Z score (1.30) than 86.25% of its industry peers.
The Debt to FCF ratio of HLLY is 79.58, which is on the high side as it means it would take HLLY, 79.58 years of fcf income to pay off all of its debts.
HLLY has a Debt to FCF ratio of 79.58. This is in the lower half of the industry: HLLY underperforms 78.75% of its industry peers.
HLLY has a Debt/Equity ratio of 1.28. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HLLY (1.28) is worse than 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 79.58 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.56
WACC9.86%
2.3 Liquidity
HLLY has a Current Ratio of 2.86. This indicates that HLLY is financially healthy and has no problem in meeting its short term obligations.
HLLY has a Current ratio of 2.86. This is amongst the best in the industry. HLLY outperforms 85.00% of its industry peers.
HLLY has a Quick Ratio of 2.86. This is a bad value and indicates that HLLY is not financially healthy enough and could expect problems in meeting its short term obligations.
HLLY has a worse Quick ratio (0.98) than 82.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 0.98 |
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.
HLLY shows a decrease in Revenue. In the last year, the revenue decreased by -8.71%.
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)-8.71%
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 4.82% on average per year.
EPS Next Y3.28%
EPS Next 2Y25.18%
EPS Next 3Y37.97%
EPS Next 5Y33.77%
Revenue Next Year-1.18%
Revenue Next 2Y1.83%
Revenue Next 3Y3.93%
Revenue Next 5Y4.82%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.86, 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 61.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, HLLY is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.29, the valuation of HLLY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HLLY is valued a bit cheaper than the industry average as 61.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.28, HLLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
HLLY's Enterprise Value to EBITDA is on the same level as the industry average.
HLLY's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HLLY is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.03 | ||
| EV/EBITDA | 7.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLLY does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as HLLY's earnings are expected to grow with 37.97% in the coming years.
PEG (NY)4.23
PEG (5Y)N/A
EPS Next 2Y25.18%
EPS Next 3Y37.97%
5. Dividend
5.1 Amount
HLLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.91
+0.23 (+8.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.23%
Inst Owner Change-1.01%
Ins Owners5.51%
Ins Owner Change2.62%
Market Cap346.55M
Analysts80
Price Target3.47 (19.24%)
Short Float %3.92%
Short Ratio4.08
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)1
Avg EPS beat(2)251.05%
Min EPS beat(2)-61.55%
Max EPS beat(2)563.65%
EPS beat(4)2
Avg EPS beat(4)92.96%
Min EPS beat(4)-134.84%
Max EPS beat(4)563.65%
EPS beat(8)3
Avg EPS beat(8)34.94%
EPS beat(12)4
Avg EPS beat(12)18.67%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)1.18%
Revenue beat(4)1
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)7
Avg Revenue beat(16)1.28%
PT rev (1m)0%
PT rev (3m)-22.22%
EPS NQ rev (1m)2.09%
EPS NQ rev (3m)-7.3%
EPS NY rev (1m)0.62%
EPS NY rev (3m)-21.36%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.58 | ||
| P/FCF | 50.03 | ||
| P/OCF | 17.15 | ||
| P/B | 0.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.55 |
EPS(TTM)0.21
EY7.22%
EPS(NY)0.31
Fwd EY10.77%
FCF(TTM)0.06
FCFY2%
OCF(TTM)0.17
OCFY5.83%
SpS5.01
BVpS3.57
TBVpS-2.98
PEG (NY)4.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -5.69% | ||
| ROCE | 7.93% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 25.61% | ||
| OM | 13.88% | ||
| PM (TTM) | N/A | ||
| GM | 42% | ||
| FCFM | 1.16% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 79.58 | ||
| Debt/EBITDA | 4.79 | ||
| Cap/Depr | 42.95% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 1.64 | ||
| Cash Conversion | 17.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.3 |
F-Score4
WACC9.86%
ROIC/WACC0.56
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 Y3.28%
EPS Next 2Y25.18%
EPS Next 3Y37.97%
EPS Next 5Y33.77%
Revenue 1Y (TTM)-8.71%
Revenue growth 3Y-4.56%
Revenue growth 5Y10.31%
Sales Q2Q%-1.67%
Revenue Next Year-1.18%
Revenue Next 2Y1.83%
Revenue Next 3Y3.93%
Revenue Next 5Y4.82%
EBIT growth 1Y3.16%
EBIT growth 3Y-16.55%
EBIT growth 5Y6.17%
EBIT Next Year83.36%
EBIT Next 3Y30.66%
EBIT Next 5Y21.11%
FCF growth 1Y161.57%
FCF growth 3Y84.83%
FCF growth 5Y114.65%
OCF growth 1Y941.92%
OCF growth 3Y29.53%
OCF growth 5Y37.85%