HOLLYSYS AUTOMATION TECHNOLO (HOLI) Stock Fundamental Analysis
NASDAQ:HOLI - Nasdaq - VGG456671053 - Common Stock - Currency: USD
HOLI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 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
HOLI had positive earnings in the past year.
HOLI had a positive operating cash flow in the past year.
HOLI had positive earnings in each of the past 5 years.
HOLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.19%, HOLI is in the better half of the industry, outperforming 66.14% of the companies in the same industry.
With a decent Return On Equity value of 6.13%, HOLI is doing good in the industry, outperforming 60.63% of the companies in the same industry.
HOLI has a better Return On Invested Capital (4.57%) than 61.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HOLI is below the industry average of 9.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 6.13% | ||
| ROIC | 4.57% |
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
The Profit Margin of HOLI (9.52%) is better than 82.68% of its industry peers.
In the last couple of years the Profit Margin of HOLI has declined.
HOLI has a Operating Margin of 8.63%. This is in the better half of the industry: HOLI outperforms 75.59% of its industry peers.
In the last couple of years the Operating Margin of HOLI has declined.
The Gross Margin of HOLI (31.07%) is comparable to the rest of the industry.
HOLI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.63% | ||
| PM (TTM) | 9.52% | ||
| GM | 31.07% |
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.
The number of shares outstanding for HOLI remains at a similar level compared to 1 year ago.
The number of shares outstanding for HOLI has been increased compared to 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 3.81. This indicates that HOLI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.81, HOLI is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
HOLI has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
HOLI's Debt to FCF ratio of 1.59 is fine compared to the rest of the industry. HOLI outperforms 72.44% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that HOLI is not too dependend on debt financing.
HOLI has a Debt to Equity ratio of 0.04. This is comparable to the rest of the industry: HOLI outperforms 57.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.61
WACC7.49%
2.3 Liquidity
HOLI has a Current Ratio of 3.02. This indicates that HOLI is financially healthy and has no problem in meeting its short term obligations.
HOLI has a Current ratio of 3.02. This is in the better half of the industry: HOLI outperforms 63.78% of its industry peers.
A Quick Ratio of 2.80 indicates that HOLI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.80, HOLI is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.8 |
3. Growth
3.1 Past
The earnings per share for HOLI have decreased strongly by -27.98% in the last year.
HOLI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.30% yearly.
The Revenue has been growing slightly by 3.60% in the past year.
The Revenue has been growing slightly by 7.53% on average over the past years.
EPS 1Y (TTM)-27.98%
EPS 3Y9.58%
EPS 5Y-0.3%
EPS Q2Q%-66.37%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y15.59%
Revenue growth 5Y7.53%
Sales Q2Q%3.48%
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 Year9.43%
Revenue Next 2Y12.33%
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 21.83, the valuation of HOLI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HOLI indicates a somewhat cheap valuation: HOLI is cheaper than 70.08% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. HOLI is around the same levels.
With a Price/Forward Earnings ratio of 11.40, the valuation of HOLI can be described as very reasonable.
HOLI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HOLI is cheaper than 87.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HOLI to the average of the S&P500 Index (22.19), we can say HOLI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HOLI is valued a bit cheaper than 72.44% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HOLI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.84 | ||
| EV/EBITDA | 12.54 |
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)0.88
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.
Compared to an average industry Dividend Yield of 2.04, HOLI pays a better dividend. On top of this HOLI pays more dividend than 94.49% of the companies listed in the same industry.
HOLI's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| 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
26.42
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners10.59%
Inst Owner Change-76.35%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.64B
Analysts43.33
Price Target24.74 (-6.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 11.4 | ||
| P/S | 2.07 | ||
| P/FCF | 39.84 | ||
| P/OCF | 23.19 | ||
| P/B | 1.34 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)1.21
EY4.58%
EPS(NY)2.32
Fwd EY8.77%
FCF(TTM)0.66
FCFY2.51%
OCF(TTM)1.14
OCFY4.31%
SpS12.73
BVpS19.78
TBVpS19.33
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 6.13% | ||
| ROCE | 5.26% | ||
| ROIC | 4.57% | ||
| ROICexc | 10.03% | ||
| ROICexgc | 10.52% | ||
| OM | 8.63% | ||
| PM (TTM) | 9.52% | ||
| GM | 31.07% | ||
| FCFM | 5.21% |
ROA(3y)5.65%
ROA(5y)6.47%
ROE(3y)8.04%
ROE(5y)9.09%
ROIC(3y)6.19%
ROIC(5y)7.91%
ROICexc(3y)14.59%
ROICexc(5y)17.88%
ROICexgc(3y)15.16%
ROICexgc(5y)18.66%
ROCE(3y)7.13%
ROCE(5y)9.11%
ROICexcg growth 3Y-12.11%
ROICexcg growth 5Y-9.6%
ROICexc growth 3Y-13.32%
ROICexc growth 5Y-8.4%
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%
F-Score2
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 276.05% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.61% | ||
| Profit Quality | 54.69% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 2.8 | ||
| Altman-Z | 3.81 |
F-Score2
WACC7.49%
ROIC/WACC0.61
Cap/Depr(3y)270.81%
Cap/Depr(5y)206.75%
Cap/Sales(3y)4.01%
Cap/Sales(5y)3.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.98%
EPS 3Y9.58%
EPS 5Y-0.3%
EPS Q2Q%-66.37%
EPS Next Y24.79%
EPS Next 2Y17.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y15.59%
Revenue growth 5Y7.53%
Sales Q2Q%3.48%
Revenue Next Year9.43%
Revenue Next 2Y12.33%
Revenue Next 3Y15.31%
Revenue Next 5YN/A
EBIT growth 1Y-27.71%
EBIT growth 3Y-4.02%
EBIT growth 5Y-5%
EBIT Next Year41.62%
EBIT Next 3Y17.8%
EBIT Next 5YN/A
FCF growth 1Y103.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y52.83%
OCF growth 3Y-49.04%
OCF growth 5Y-26.18%