Hollysys Automation Technologies Ltd.
Hollysys Automation Technologies Ltd. Fundamental Analysis
Hollysys Automation Technologies Ltd. (HOLI) shows weak financial fundamentals with a PE ratio of 15.20, profit margin of 13.76%, and ROE of 9.14%. The company generates $0.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HOLI's fundamental strength across five key dimensions:
Efficiency Score
WeakHOLI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHOLI trades at attractive valuation levels.
Growth Score
ModerateHOLI shows steady but slowing expansion.
Financial Health Score
ExcellentHOLI maintains a strong and stable balance sheet.
Profitability Score
WeakHOLI struggles to sustain strong margins.
Key Financial Metrics
Is HOLI Expensive or Cheap?
P/E Ratio
HOLI trades at 15.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HOLI's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Hollysys Automation Technologies Ltd. at 1.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.13 times EBITDA. This signals the market has high growth expectations.
How Well Does HOLI Make Money?
Net Profit Margin
For every $100 in sales, Hollysys Automation Technologies Ltd. keeps $13.76 as profit after all expenses.
Operating Margin
Core operations generate 11.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.14 in profit for every $100 of shareholder equity.
ROA
Hollysys Automation Technologies Ltd. generates $6.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hollysys Automation Technologies Ltd. generates limited operating cash flow of $23.43M, signaling weaker underlying cash strength.
Free Cash Flow
Hollysys Automation Technologies Ltd. generates weak or negative free cash flow of $-17.94M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.29 in free cash annually.
FCF Yield
HOLI converts -1.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HOLI Stacks Against Its Sector Peers
| Metric | HOLI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.20 | 26.49 | Better (Cheaper) |
| ROE | 9.14% | 1307.00% | Weak |
| Net Margin | 13.76% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 3.03 | 10.48 | Strong Liquidity |
| ROA | 6.35% | -1549792.00% (disorted) | Weak |
HOLI outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hollysys Automation Technologies Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure