HOLLYSYS AUTOMATION TECHNOLO (HOLI)
VGG456671053 - Common Stock
We assign a fundamental rating of 6 out of 10 to HOLI. HOLI was compared to 127 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.
In the past year HOLI had a positive cash flow from operations.
In the past 5 years HOLI has always been profitable.
Each year in the past 5 years HOLI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.49%, HOLI is in the better half of the industry, outperforming 69.84% of the companies in the same industry.
With a Return On Equity value of 6.69%, HOLI perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
With a Return On Invested Capital value of 5.08%, HOLI perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
HOLI had an Average Return On Invested Capital over the past 3 years of 6.19%. This is below the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 6.69% | ||
| ROIC | 5.08% |
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
With an excellent Profit Margin value of 10.57%, HOLI belongs to the best of the industry, outperforming 84.92% of the companies in the same industry.
HOLI's Profit Margin has declined in the last couple of years.
HOLI's Operating Margin of 9.75% is fine compared to the rest of the industry. HOLI outperforms 77.78% of its industry peers.
HOLI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 30.65%, HOLI perfoms like the industry average, outperforming 51.59% of the companies in the same industry.
In the last couple of years the Gross Margin of HOLI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.75% | ||
| PM (TTM) | 10.57% | ||
| GM | 30.65% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HOLI is destroying value.
Compared to 1 year ago, HOLI has about the same amount of shares outstanding.
HOLI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HOLI is higher compared to a year ago.
2.2 Solvency
HOLI has an Altman-Z score of 3.50. This indicates that HOLI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HOLI (3.50) is better than 65.87% of its industry peers.
HOLI has a debt to FCF ratio of 1.10. This is a very positive value and a sign of high solvency as it would only need 1.10 years to pay back of all of its debts.
HOLI has a better Debt to FCF ratio (1.10) than 76.19% 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.
HOLI has a Debt to Equity ratio (0.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 1.1 | ||
| Altman-Z | 3.5 |
ROIC/WACC0.67
WACC7.53%
2.3 Liquidity
A Current Ratio of 2.90 indicates that HOLI has no problem at all paying its short term obligations.
HOLI has a better Current ratio (2.90) than 61.90% of its industry peers.
HOLI has a Quick Ratio of 2.70. This indicates that HOLI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of HOLI (2.70) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The earnings per share for HOLI have decreased strongly by -23.83% in the last year.
The Earnings Per Share has been decreasing by -0.30% on average over the past years.
HOLI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
HOLI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)-23.83%
EPS 3Y9.58%
EPS 5Y-0.3%
EPS growth Q2Q-70.83%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y15.59%
Revenue growth 5Y7.53%
Revenue growth Q2Q-8.58%
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.
The Revenue is expected to grow by 15.31% on average over the next years. This is quite good.
EPS Next Y24.79%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.02%
Revenue Next 2Y14.69%
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.
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
Based on the Price/Earnings ratio of 17.73, the valuation of HOLI can be described as rather expensive.
Based on the Price/Earnings ratio, HOLI is valued a bit cheaper than 76.98% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.06, HOLI is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.25, which indicates a very decent valuation of HOLI.
89.68% of the companies in the same industry are more expensive than HOLI, based on the Price/Forward Earnings ratio.
HOLI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
79.37% of the companies in the same industry are more expensive than HOLI, based on the Enterprise Value to EBITDA ratio.
67.46% of the companies in the same industry are more expensive than HOLI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.49 | ||
| EV/EBITDA | 8.85 |
4.3 Compensation for Growth
HOLI's 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)0.72
PEG (5Y)N/A
EPS Next 2Y17.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HOLI has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
HOLI's Dividend Yield is rather good when compared to the industry average which is at 1.75. HOLI pays more dividend than 93.65% of the companies in the same industry.
HOLI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| 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 (5/3/2024, 8:56:11 AM)
23.76
+0.11 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap1.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Dividend Growth(5Y)
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Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 10.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.49% | ||
| ROE | 6.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.75% | ||
| PM (TTM) | 10.57% | ||
| GM | 30.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.9 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.83%
EPS 3Y9.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y24.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.47%
Revenue growth 3Y15.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 5Y
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