NasdaqCM:HIHO

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Highway Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HIHO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

HIHO

0.8%

US Machinery

-1.3%

US Market


1 Year Return

111.9%

HIHO

13.7%

US Machinery

18.5%

US Market

Return vs Industry: HIHO exceeded the US Machinery industry which returned 13.8% over the past year.

Return vs Market: HIHO exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

HIHOIndustryMarket
7 Day0.8%0.8%-1.3%
30 Day24.7%7.6%5.3%
90 Day41.6%14.2%7.5%
1 Year128.0%111.9%16.6%13.7%21.3%18.5%
3 Year28.0%7.9%25.0%16.0%42.4%32.9%
5 Year-0.7%-27.6%108.3%85.1%84.2%63.5%

Price Volatility Vs. Market

How volatile is Highway Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Highway Holdings undervalued compared to its fair value and its price relative to the market?

18.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIHO ($3.73) is trading below our estimate of fair value ($4.56)

Significantly Below Fair Value: HIHO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HIHO is good value based on its PE Ratio (16.5x) compared to the US Machinery industry average (25.5x).

PE vs Market: HIHO is good value based on its PE Ratio (16.5x) compared to the US market (18.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HIHO is good value based on its PB Ratio (1.4x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

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

20.7%

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.


Next Steps

Past Performance

How has Highway Holdings performed over the past 5 years?

-25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIHO has high quality earnings.

Growing Profit Margin: HIHO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HIHO's earnings have declined by 25.5% per year over the past 5 years.

Accelerating Growth: HIHO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HIHO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-13.1%).


Return on Equity

High ROE: HIHO's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Highway Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HIHO's short term assets ($12.2M) exceed its short term liabilities ($4.4M).

Long Term Liabilities: HIHO's short term assets ($12.2M) exceed its long term liabilities ($1.9M).


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


Next Steps

Dividend

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

10.72%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HIHO's dividend (10.72%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: HIHO's dividend (10.72%) is in the top 25% of dividend payers in the US market (4.71%)


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.5%), HIHO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

10.1yrs

Average management tenure


CEO

Roland Walter Kohl (71 yo)

30.75yrs

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

NamePositionTenureCompensationOwnership
Roland Walter Kohl
Founder30.75yrsno data9.26%
$ 1.4m
Alan Chan
CFO, Treasurer & Secretary10.08yrsno data1.26%
$ 186.5k
Ringo Tsang
Chief Operating Officer2.92yrsno data1.26%
$ 186.5k

10.1yrs

Average Tenure

57yo

Average Age

Experienced Management: HIHO's management team is seasoned and experienced (10.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roland Walter Kohl
Founder30.75yrsno data9.26%
$ 1.4m
Tiko Aharonov
Independent Director30.75yrsno data5.91%
$ 876.5k
Dirk Hermann
Director0.50yrUS$1.50k0.79%
$ 116.7k
Ping Yim Wong
Independent Director15.25yrsno data0.075%
$ 11.2k
Uri Bernhard Oppenheimer
Independent Director15.25yrsno data0.68%
$ 100.7k
Wing Chan Leung
Independent Director14.83yrsno data0.075%
$ 11.2k
Kuang Yu Yang
Independent Director15.25yrsno datano data
Heiko Sonnekalb
Director0.50yrno data0.13%
$ 18.7k

15.3yrs

Average Tenure

65yo

Average Age

Experienced Board: HIHO's board of directors are seasoned and experienced ( 15.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

Company Information

Highway Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Highway Holdings Limited
  • Ticker: HIHO
  • Exchange: NasdaqCM
  • Founded: 1990
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$14.834m
  • Shares outstanding: 3.98m
  • Website: https://www.highwayholdings.com

Number of Employees


Location

  • Highway Holdings Limited
  • Landmark North
  • Suite 1801
  • Sheung Shui
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIHONasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDDec 1996

Biography

Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufact ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:41
End of Day Share Price2020/10/21 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.