HILLMAN SOLUTIONS CORP (HLMN) Stock Fundamental Analysis
NASDAQ:HLMN - US4316361090 - Common Stock
10.07 USD
+0.38 (+3.92%)
10.07 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to HLMN. HLMN was compared to 127 industry peers in the Machinery industry. There are concerns on the financial health of HLMN while its profitability can be described as average. HLMN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HLMN had positive earnings in the past year.
HLMN had a positive operating cash flow in the past year.
HLMN had negative earnings in 4 of the past 5 years.
HLMN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HLMN (0.92%) is worse than 66.14% of its industry peers.
HLMN has a Return On Equity of 1.80%. This is in the lower half of the industry: HLMN underperforms 66.14% of its industry peers.
HLMN has a Return On Invested Capital of 2.88%. This is in the lower half of the industry: HLMN underperforms 65.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLMN is significantly below the industry average of 10.47%.
The last Return On Invested Capital (2.88%) for HLMN is above the 3 year average (1.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.8% | ||
| ROIC | 2.88% |
ROA(3y)-0.11%
ROA(5y)-0.56%
ROE(3y)-0.26%
ROE(5y)-2.17%
ROIC(3y)1.94%
ROIC(5y)1.62%
1.3 Margins
HLMN has a Profit Margin of 1.44%. This is in the lower half of the industry: HLMN underperforms 63.78% of its industry peers.
HLMN has a Operating Margin (6.13%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HLMN has grown nicely.
HLMN has a better Gross Margin (47.80%) than 89.76% of its industry peers.
In the last couple of years the Gross Margin of HLMN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | 1.44% | ||
| GM | 47.8% |
OM growth 3Y102.86%
OM growth 5Y36.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLMN is destroying value.
Compared to 1 year ago, HLMN has more shares outstanding
HLMN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HLMN has been reduced compared to a year ago.
2.2 Solvency
HLMN has an Altman-Z score of 1.86. This is not the best score and indicates that HLMN is in the grey zone with still only limited risk for bankruptcy at the moment.
HLMN has a worse Altman-Z score (1.86) than 68.50% of its industry peers.
HLMN has a debt to FCF ratio of 9.74. This is a negative value and a sign of low solvency as HLMN would need 9.74 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.74, HLMN is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
HLMN has a Debt/Equity ratio of 0.57. This is a neutral value indicating HLMN is somewhat dependend on debt financing.
HLMN's Debt to Equity ratio of 0.57 is on the low side compared to the rest of the industry. HLMN is outperformed by 61.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 9.74 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.31
WACC9.26%
2.3 Liquidity
HLMN has a Current Ratio of 2.28. This indicates that HLMN is financially healthy and has no problem in meeting its short term obligations.
HLMN has a Current ratio (2.28) which is in line with its industry peers.
HLMN has a Quick Ratio of 2.28. This is a bad value and indicates that HLMN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HLMN (0.72) is worse than 82.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.77% over the past year.
The Revenue has been growing slightly by 1.93% in the past year.
Measured over the past years, HLMN shows a small growth in Revenue. The Revenue has been growing by 3.93% on average per year.
EPS 1Y (TTM)12.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%6.25%
Revenue 1Y (TTM)1.93%
Revenue growth 3Y1.08%
Revenue growth 5Y3.93%
Sales Q2Q%6.16%
3.2 Future
Based on estimates for the next years, HLMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.84% on average per year.
The Revenue is expected to grow by 5.08% on average over the next years.
EPS Next Y12.35%
EPS Next 2Y8.35%
EPS Next 3Y10.26%
EPS Next 5Y16.84%
Revenue Next Year5.99%
Revenue Next 2Y6.85%
Revenue Next 3Y6.04%
Revenue Next 5Y5.08%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HLMN is valuated rather expensively with a Price/Earnings ratio of 19.00.
70.87% of the companies in the same industry are more expensive than HLMN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HLMN to the average of the S&P500 Index (27.24), we can say HLMN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.50, HLMN is valued correctly.
HLMN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HLMN is cheaper than 71.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, HLMN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
69.29% of the companies in the same industry are more expensive than HLMN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as HLMN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.8 | ||
| EV/EBITDA | 11.58 |
4.3 Compensation for Growth
HLMN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y8.35%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
HLMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.07
+0.38 (+3.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.83%
Inst Owner Change-0.91%
Ins Owners1.13%
Ins Owner Change6.66%
Market Cap1.99B
Analysts80
Price Target12.4 (23.14%)
Short Float %3.48%
Short Ratio3.88
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)2
Avg EPS beat(2)8.57%
Min EPS beat(2)1.2%
Max EPS beat(2)15.94%
EPS beat(4)2
Avg EPS beat(4)1.89%
Min EPS beat(4)-7.7%
Max EPS beat(4)15.94%
EPS beat(8)5
Avg EPS beat(8)5.14%
EPS beat(12)9
Avg EPS beat(12)33.05%
EPS beat(16)12
Avg EPS beat(16)285.05%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)1.61%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.16%
Max Revenue beat(4)1.61%
Revenue beat(8)1
Avg Revenue beat(8)-1.53%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)2
Avg Revenue beat(16)-1.92%
PT rev (1m)15.09%
PT rev (3m)13.46%
EPS NQ rev (1m)-12.37%
EPS NQ rev (3m)12.7%
EPS NY rev (1m)3.9%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)2.42%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 16.5 | ||
| P/S | 1.32 | ||
| P/FCF | 27.8 | ||
| P/OCF | 12.85 | ||
| P/B | 1.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.58 |
EPS(TTM)0.53
EY5.26%
EPS(NY)0.61
Fwd EY6.06%
FCF(TTM)0.36
FCFY3.6%
OCF(TTM)0.78
OCFY7.78%
SpS7.61
BVpS6.11
TBVpS-1.01
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 1.8% | ||
| ROCE | 4.43% | ||
| ROIC | 2.88% | ||
| ROICexc | 2.93% | ||
| ROICexgc | 9.33% | ||
| OM | 6.13% | ||
| PM (TTM) | 1.44% | ||
| GM | 47.8% | ||
| FCFM | 4.76% |
ROA(3y)-0.11%
ROA(5y)-0.56%
ROE(3y)-0.26%
ROE(5y)-2.17%
ROIC(3y)1.94%
ROIC(5y)1.62%
ROICexc(3y)1.97%
ROICexc(5y)1.64%
ROICexgc(3y)6.76%
ROICexgc(5y)6%
ROCE(3y)2.98%
ROCE(5y)2.49%
ROICexcg growth 3Y110.94%
ROICexcg growth 5Y37.21%
ROICexc growth 3Y112.78%
ROICexc growth 5Y43.98%
OM growth 3Y102.86%
OM growth 5Y36.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y2.32%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 9.74 | ||
| Debt/EBITDA | 2.98 | ||
| Cap/Depr | 60.9% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 1.88 | ||
| Cash Conversion | 67.63% | ||
| Profit Quality | 329.53% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.86 |
F-Score7
WACC9.26%
ROIC/WACC0.31
Cap/Depr(3y)59.2%
Cap/Depr(5y)51.21%
Cap/Sales(3y)4.97%
Cap/Sales(5y)4.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%6.25%
EPS Next Y12.35%
EPS Next 2Y8.35%
EPS Next 3Y10.26%
EPS Next 5Y16.84%
Revenue 1Y (TTM)1.93%
Revenue growth 3Y1.08%
Revenue growth 5Y3.93%
Sales Q2Q%6.16%
Revenue Next Year5.99%
Revenue Next 2Y6.85%
Revenue Next 3Y6.04%
Revenue Next 5Y5.08%
EBIT growth 1Y6.16%
EBIT growth 3Y105.05%
EBIT growth 5Y41.6%
EBIT Next Year151.21%
EBIT Next 3Y40.11%
EBIT Next 5Y28.33%
FCF growth 1Y-49.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-29.36%
OCF growth 3YN/A
OCF growth 5Y28.46%