HOLLEY INC (HLLY) Stock Fundamental Analysis
USA - NYSE:HLLY - US43538H1032 - Common Stock
2.91 USD
-0.05 (-1.69%)
2.91 USD
0 (0%)
Taking everything into account, HLLY scores 4 out of 10 in our fundamental rating. HLLY was compared to 83 industry peers in the Automobile Components industry. HLLY has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
HLLY had a positive operating cash flow in the past year.
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 -2.62% is on the low side compared to the rest of the industry. HLLY is outperformed by 79.52% of its industry peers.
The Return On Equity of HLLY (-6.94%) is worse than 74.70% of its industry peers.
HLLY has a worse Return On Invested Capital (5.46%) than 71.08% 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 last Return On Invested Capital (5.46%) for HLLY is above the 3 year average (4.83%), which is a sign of increasing profitability.
| 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 97.59% of the companies in the same industry.
In the last couple of years the Operating Margin of HLLY has declined.
Looking at the Gross Margin, with a value of 42.07%, HLLY belongs to the top of the industry, outperforming 93.98% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLLY is destroying value.
Compared to 1 year ago, HLLY has more shares outstanding
The debt/assets ratio for HLLY is higher compared to a year ago.
2.2 Solvency
HLLY has an Altman-Z score of 1.32. This is a bad value and indicates that HLLY is not financially healthy and even has some risk of bankruptcy.
HLLY's Altman-Z score of 1.32 is on the low side compared to the rest of the industry. HLLY is outperformed by 85.54% of its industry peers.
HLLY has a debt to FCF ratio of 55.25. This is a negative value and a sign of low solvency as HLLY would need 55.25 years to pay back of all of its debts.
HLLY's Debt to FCF ratio of 55.25 is on the low side compared to the rest of the industry. HLLY is outperformed by 74.70% of its industry peers.
HLLY has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
HLLY has a worse Debt to Equity ratio (1.24) than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 55.25 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.57
WACC9.59%
2.3 Liquidity
A Current Ratio of 2.93 indicates that HLLY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.93, HLLY belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
HLLY has a Quick Ratio of 1.18. This is a normal value and indicates that HLLY is financially healthy and should not expect problems in meeting its short term obligations.
HLLY's Quick ratio of 1.18 is fine compared to the rest of the industry. HLLY outperforms 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.54% over the past year.
HLLY shows a decrease in Revenue. In the last year, the revenue decreased by -7.27%.
Measured over the past years, HLLY shows a quite strong growth in Revenue. The Revenue has been growing by 10.31% on average per year.
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
HLLY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.77% yearly.
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 Y19.49%
EPS Next 2Y36.06%
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
The Price/Earnings ratio is 13.86, which indicates a correct valuation of HLLY.
62.65% of the companies in the same industry are more expensive than HLLY, based on the Price/Earnings ratio.
HLLY is valuated cheaply when we compare the Price/Earnings ratio to 27.77, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.86, the valuation of HLLY can be described as very cheap.
Based on the Price/Forward Earnings ratio, HLLY is valued a bit cheaper than 75.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. HLLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 7.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLLY is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, HLLY is valued a bit more expensive than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.21 | ||
| EV/EBITDA | 7.31 |
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)0.71
PEG (5Y)N/A
EPS Next 2Y36.06%
EPS Next 3Y32.23%
5. Dividend
5.1 Amount
HLLY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.91
-0.05 (-1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners46.46%
Inst Owner Change-0.13%
Ins Owners5.68%
Ins Owner Change8.19%
Market Cap350.65M
Revenue(TTM)593.80M
Net Income(TTM)-30390000
Analysts81.43
Price Target4 (37.46%)
Short Float %2.16%
Short Ratio1.44
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)0%
PT rev (3m)17.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.43%
EPS NY rev (1m)0.61%
EPS NY rev (3m)15.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 7.86 | ||
| P/S | 0.59 | ||
| P/FCF | 35.21 | ||
| P/OCF | 10.01 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.31 |
EPS(TTM)0.21
EY7.22%
EPS(NY)0.37
Fwd EY12.72%
FCF(TTM)0.08
FCFY2.84%
OCF(TTM)0.29
OCFY9.99%
SpS4.93
BVpS3.63
TBVpS-2.81
PEG (NY)0.71
PEG (5Y)N/A
Graham Number4.14
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%
ROICexgc growth 3Y-17.55%
ROICexgc 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 | 1.32 |
F-Score4
WACC9.59%
ROIC/WACC0.57
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 Y19.49%
EPS Next 2Y36.06%
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 Year90.4%
EBIT Next 3Y28.39%
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%