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HOLLYSYS AUTOMATION TECHNOLO (HOLI) Stock Fundamental Analysis

NASDAQ:HOLI - Nasdaq - VGG456671053 - Common Stock - Currency: USD

26.42  +0.01 (+0.04%)

After market: 26.48 +0.06 (+0.23%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to HOLI. HOLI was compared to 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 has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

HOLI had positive earnings in the past year.
In the past year HOLI had a positive cash flow from operations.
HOLI had positive earnings in each of the past 5 years.
In the past 5 years HOLI always reported a positive cash flow from operatings.
HOLI Yearly Net Income VS EBIT VS OCF VS FCFHOLI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

1.2 Ratios

HOLI's Return On Assets of 4.19% is fine compared to the rest of the industry. HOLI outperforms 66.14% of its industry peers.
HOLI has a better Return On Equity (6.13%) than 60.63% of its industry peers.
HOLI has a Return On Invested Capital of 4.57%. This is in the better half of the industry: HOLI outperforms 61.42% of its industry peers.
HOLI had an Average Return On Invested Capital over the past 3 years of 6.19%. This is below the industry average of 9.21%.
Industry RankSector 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%
HOLI Yearly ROA, ROE, ROICHOLI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

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.
Looking at the Operating Margin, with a value of 8.63%, HOLI is in the better half of the industry, outperforming 75.59% of the companies in the same industry.
In the last couple of years the Operating Margin of HOLI has declined.
HOLI has a Gross Margin (31.07%) which is in line with its industry peers.
HOLI's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
HOLI Yearly Profit, Operating, Gross MarginsHOLI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HOLI is destroying value.
HOLI has about the same amout of shares outstanding than it did 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.
HOLI Yearly Shares OutstandingHOLI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
HOLI Yearly Total Debt VS Total AssetsHOLI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

An Altman-Z score of 3.81 indicates that HOLI is not in any danger for 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.
The Debt to FCF ratio of HOLI is 1.59, which is an excellent value as it means it would take HOLI, only 1.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.59, HOLI is in the better half of the industry, outperforming 72.44% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0.04
Debt/FCF 1.59
Altman-Z 3.81
ROIC/WACC0.61
WACC7.49%
HOLI Yearly LT Debt VS Equity VS FCFHOLI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M 800M 1B

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 better Current ratio (3.02) than 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.
HOLI's Quick ratio of 2.80 is fine compared to the rest of the industry. HOLI outperforms 74.02% of its industry peers.
Industry RankSector Rank
Current Ratio 3.02
Quick Ratio 2.8
HOLI Yearly Current Assets VS Current LiabilitesHOLI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

5

3. Growth

3.1 Past

HOLI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.98%.
Measured over the past years, HOLI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.30% on average per year.
HOLI shows a small growth in Revenue. In the last year, the Revenue has grown by 3.60%.
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

Based on estimates for the next years, HOLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.20% on average per year.
Based on estimates for the next years, HOLI will show a quite strong growth in Revenue. The Revenue will grow by 15.31% on average per year.
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.
HOLI Yearly Revenue VS EstimatesHOLI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
HOLI Yearly EPS VS EstimatesHOLI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5

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.
HOLI's Price/Earnings ratio is a bit cheaper when compared to the industry. HOLI is cheaper than 70.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of HOLI to the average of the S&P500 Index (26.25), we can say HOLI is valued inline with the index average.
HOLI is valuated reasonably with a Price/Forward Earnings ratio of 11.40.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOLI indicates a rather cheap valuation: HOLI is cheaper than 87.40% of the companies listed in the same industry.
HOLI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
Industry RankSector Rank
PE 21.83
Fwd PE 11.4
HOLI Price Earnings VS Forward Price EarningsHOLI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 RankSector Rank
P/FCF 39.84
EV/EBITDA 12.54
HOLI Per share dataHOLI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
HOLI's earnings are expected to grow with 17.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y17.2%
EPS Next 3YN/A

3

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 2.11, HOLI pays a better dividend. On top of this HOLI pays more dividend than 94.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, HOLI has a dividend comparable with the average S&P500 company.
Industry RankSector 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
HOLI Yearly Dividends per shareHOLI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 0 0 0 0 0

5.3 Sustainability

DP0%
EPS Next 2Y17.2%
EPS Next 3YN/A
HOLI Yearly Income VS Free CF VS DividendHOLI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M 100M 150M

HOLLYSYS AUTOMATION TECHNOLO

NASDAQ:HOLI (7/25/2024, 8:00:02 PM)

After market: 26.48 +0.06 (+0.23%)

26.42

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)05-13 2024-05-13/amc
Earnings (Next)08-13 2024-08-13/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%