NasdaqGS:HOLI

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Hollysys Automation Technologies

Executive Summary

Hollysys Automation Technologies Ltd. provides automation solutions in the People’s Republic of China, Southeast Asia, India, and the Middle East. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Hollysys Automation Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HOLI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.7%

HOLI

-0.9%

US Electronic

-1.1%

US Market


1 Year Return

-22.3%

HOLI

7.1%

US Electronic

15.6%

US Market

Return vs Industry: HOLI underperformed the US Electronic industry which returned 10.4% over the past year.

Return vs Market: HOLI underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HOLIIndustryMarket
7 Day-7.7%-0.9%-1.1%
30 Day7.7%9.1%4.2%
90 Day-3.3%8.6%6.3%
1 Year-21.0%-22.3%8.2%7.1%18.2%15.6%
3 Year-47.4%-49.4%18.7%15.3%39.6%30.4%
5 Year-44.0%-47.0%81.9%73.4%79.5%59.2%

Price Volatility Vs. Market

How volatile is Hollysys Automation Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hollysys Automation Technologies undervalued compared to its fair value and its price relative to the market?

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOLI ($11.44) is trading below our estimate of fair value ($15.67)

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


Price To Earnings Ratio

PE vs Industry: HOLI is good value based on its PE Ratio (8.7x) compared to the US Electronic industry average (26.6x).

PE vs Market: HOLI is good value based on its PE Ratio (8.7x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: HOLI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HOLI is good value based on its PB Ratio (0.7x) compared to the US Electronic industry average (2.2x).


Next Steps

Future Growth

How is Hollysys Automation Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOLI's forecast earnings growth (13.3% per year) is above the savings rate (2.2%).

Earnings vs Market: HOLI's earnings (13.3% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: HOLI's earnings are forecast to grow, but not significantly.

Revenue vs Market: HOLI's revenue (7.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: HOLI's revenue (7.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HOLI's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Hollysys Automation Technologies performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOLI has a large one-off loss of $30.0M impacting its June 30 2020 financial results.

Growing Profit Margin: HOLI's current net profit margins (15.8%) are lower than last year (22%).


Past Earnings Growth Analysis

Earnings Trend: HOLI's earnings have grown by 2.6% per year over the past 5 years.

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

Earnings vs Industry: HOLI had negative earnings growth (-36.7%) over the past year, making it difficult to compare to the Electronic industry average (-18%).


Return on Equity

High ROE: HOLI's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Hollysys Automation Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: HOLI's short term assets ($1.2B) exceed its short term liabilities ($327.3M).

Long Term Liabilities: HOLI's short term assets ($1.2B) exceed its long term liabilities ($44.6M).


Debt to Equity History and Analysis

Debt Level: HOLI's debt to equity ratio (1.6%) is considered satisfactory.

Reducing Debt: HOLI's debt to equity ratio has reduced from 8.6% to 1.6% over the past 5 years.

Debt Coverage: HOLI's debt is well covered by operating cash flow (1087.7%).

Interest Coverage: HOLI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Hollysys Automation Technologies's current dividend yield, its reliability and sustainability?

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOLI's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: HOLI's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

Stable Dividend: HOLI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HOLI has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.3%), HOLI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HOLI's dividends in 3 years are forecast to be thoroughly covered by earnings (10.1% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Colin Sung (54 yo)

0.25

Tenure

Mr. Chit Nim Sung, also known as Colin, has been Director of SOKO Fitness & Spa Group, Inc. since October 6, 2010. Mr. Sung has been Chief Executive Officer at Hollysys Automation Technologies Ltd. since J ...


Leadership Team

NamePositionTenureCompensationOwnership
Chit Nim Sung
CEO & Director0.25yrno data0.15%
$ 1.0m
Steven Wang
Chief Financial Officer2.33yrsno datano data
Lei Fang
Co-Chief Operating Officer0.25yrno datano data
Yue Xu
Co-Chief Operating Officer0.25yrno datano data
Chunming He
Chief Technology Officer0.25yrno datano data
Arden Xia
Investor Relations Directorno datano datano data
Hongyuan Shi
Chief Human Resource Officer0.25yrno datano data

0.3yrs

Average Tenure

52yo

Average Age

Experienced Management: HOLI's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Chit Nim Sung
CEO & Director0.25yrno data0.15%
$ 1.0m
Kok Peng Teh
Independent Director0.083yrno datano data
Li Qiao
Chairwoman of the Board0.25yrUS$150.00k0.92%
$ 6.4m
Jianyun Chai
Independent Director12.33yrsno data0.099%
$ 686.4k
Khiaw Ngoh Tan
Independent Director0.083yrno datano data

0.3yrs

Average Tenure

62yo

Average Age

Experienced Board: HOLI's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

Hollysys Automation Technologies Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hollysys Automation Technologies Ltd.
  • Ticker: HOLI
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$692.544m
  • Shares outstanding: 60.54m
  • Website: https://www.hollysys.com

Number of Employees


Location

  • Hollysys Automation Technologies Ltd.
  • No. 2 Disheng Middle Road
  • Beijing Eco-Tech Dev Area
  • Beijing
  • 100176
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOLINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2005
46HDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2005
0M58LSE (London Stock Exchange)YesCommon StockGBUSDAug 2005

Biography

Hollysys Automation Technologies Ltd. provides automation solutions in the People’s Republic of China, Southeast Asia, India, and the Middle East. The company offers a suite of industrial automation system ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 23:44
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.