Highway Holdings (NasdaqCM:HIHO) - Share price, News & Analysis

HIHO fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	2/6

HIHO Stock Overview

Rewards

Trading at 27.4% below our estimate of its fair value

Risk Analysis

Earnings have declined by 24.2% per year over past 5 years

Does not have a meaningful market cap ($9M)

Dividend of 7.83% is not well covered by earnings

Profit margins (2.3%) are lower than last year (6.4%)

Highway Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Highway Holdings
Historical stock prices
Current Share Price	US$2.30
52 Week High	US$5.07
52 Week Low	US$1.95
Beta	0.48
1 Month Change	14.14%
3 Month Change	-20.96%
1 Year Change	-43.07%
3 Year Change	-18.09%
5 Year Change	-33.33%
Change since IPO	-55.12%

Recent News & Updates

Apr 12

Highway Holdings (NASDAQ:HIHO) Has Some Difficulty Using Its Capital Effectively

When researching a stock for investment, what can tell us that the company is in decline? When we see a declining...

Shareholder Returns

	HIHO	US Machinery	US Market
7D	-2.5%	1.5%	6.6%
1Y	-43.1%	-20.1%	-18.4%

Return vs Industry: HIHO underperformed the US Machinery industry which returned -20.6% over the past year.

Return vs Market: HIHO underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is HIHO's price volatile compared to industry and market?
HIHO volatility
HIHO Average Weekly Movement	7.0%
Machinery Industry Average Movement	6.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: HIHO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HIHO's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1990	n/a	Roland Walter Kohl	https://www.highwayholdings.com

Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEMs) and contract manufacturers. It operates through two segments: Metal Stamping and Mechanical OEM; and Electric OEM. The company also trades in plastic injection products; and manufactures and assembles automation equipment.

Highway Holdings Fundamentals Summary

How do Highway Holdings's earnings and revenue compare to its market cap?
HIHO fundamental statistics
Market Cap	US$9.28m
Earnings (TTM)	US$261.00k
Revenue (TTM)	US$11.21m

35.6x

P/E Ratio

0.8x

P/S Ratio

Is HIHO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIHO income statement (TTM)
Revenue	US$11.21m
Cost of Revenue	US$7.94m
Gross Profit	US$3.27m
Other Expenses	US$3.01m
Earnings	US$261.00k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.065
Gross Margin	29.17%
Net Profit Margin	2.33%
Debt/Equity Ratio	0%

How did HIHO perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

217%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HIHO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HIHO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HIHO. This is calculated by dividing HIHO's market cap by their current preferred multiple.
What is HIHO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$9.28m

HIHO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	16.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does HIHO's PE Ratio compare to its peers?

HIHO PE Ratio vs Peers

The above table shows the PE ratio for HIHO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.8x

Forward PE

Price-To-Earnings vs Peers: HIHO is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

How does HIHO's PE Ratio compare vs other companies in the U.S. Machinery Industry?

Price-To-Earnings vs Industry: HIHO is expensive based on its Price-To-Earnings Ratio (35.6x) compared to the US Machinery industry average (21.7x)

Price to Earnings Ratio vs Fair Ratio

What is HIHO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HIHO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	35.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HIHO's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of HIHO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HIHO ($2.3) is trading below our estimate of fair value ($3.17)

Significantly Below Fair Value: HIHO is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HIHO's PEG Ratio to determine if it is good value.

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Future Growth

How is Highway Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.0%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Highway Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine Highway Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Highway Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-24.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HIHO has high quality earnings.

Growing Profit Margin: HIHO's current net profit margins (2.3%) are lower than last year (6.4%).

Past Earnings Growth Analysis

Earnings Trend: HIHO's earnings have declined by 24.2% per year over the past 5 years.

Accelerating Growth: HIHO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HIHO had negative earnings growth (-60%) over the past year, making it difficult to compare to the Machinery industry average (24%).

Return on Equity

High ROE: HIHO's Return on Equity (2.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Highway Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HIHO's short term assets ($12.0M) exceed its short term liabilities ($4.2M).

Long Term Liabilities: HIHO's short term assets ($12.0M) exceed its long term liabilities ($969.0K).

Debt to Equity History and Analysis

Debt Level: HIHO is debt free.

Reducing Debt: HIHO has not had any debt for past 5 years.

Debt Coverage: HIHO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HIHO has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Highway Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HIHO's dividend (7.83%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: HIHO's dividend (7.83%) is in the top 25% of dividend payers in the US market (4.24%)

Stability and Growth of Payments

Stable Dividend: HIHO's dividend payments have been volatile in the past 10 years.

Growing Dividend: HIHO's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (217%), HIHO's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

11.8yrs

Average management tenure

CEO

Roland Walter Kohl (72 yo)

32.42yrs

Tenure

Mr. Roland Walter Kohl founded Highway Holdings Limited and has been its Chief Executive Officer since its inception in 1990. Mr. Kohl serves as Chairman of the Board and President of Highway Holdings Limi...

Leadership Team

Experienced Management: HIHO's management team is seasoned and experienced (11.8 years average tenure).

Board Members

Experienced Board: HIHO's board of directors are seasoned and experienced ( 16.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31