HOLI

Hollysys Automation TechnologiesNasdaqGS:HOLI Stock Report

Market Cap

US$1.3b

7D

1.5%

1Y

93.7%

Updated

22 Sep, 2021

Data

Company Financials +
HOLI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends2/6

HOLI Overview

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

Hollysys Automation Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hollysys Automation Technologies
Historical stock prices
Current Share PriceUS$21.02
52 Week HighUS$10.47
52 Week LowUS$21.24
Beta0.98
1 Month Change9.03%
3 Month Change44.07%
1 Year Change93.73%
3 Year Change0.24%
5 Year Change-8.69%
Change since IPO304.23%

Recent News & Updates

Aug 27

Hollysys Investors Seeing A Light At The End Of The Tunnel... And It's Not An Oncoming Train

Hollysys has a strong $23/share bid on the table from a group that includes Ascendent Capital Partners and Changli Wang, the founder, former Chairman, and former CEO of Hollysys. Management is late reporting fiscal fourth quarter results, leading me to think they're seriously considering the bid, and the company recently announced two current executive officers are supporting the bidders. A top-level preannouncement from management suggests materially better fourth quarter results than I expected, including strong Industrial Automation sales, and recent awards have been very encouraging. The $23/share bid approximates my estimate of Hollysys' value today and there's no execution risk for shareholders, though it comes at the cost of standalone upside.

Jun 02

If You Are A True Value Investor, Then You Will Love Hollysys Automation Technologies

Hollysys Automation Technologies is one of the best value opportunities right now. It´s a stable business with a lot of cash waiting to be deployed. The stock has over 60% upside with a huge margin of safety, and is currently offering attractive double-digits in annual growth from its current share price.

Apr 26

Hollysys Automation: Financial Trends Confirm Bullish Technicals

Photo by Dilok Klaisataporn/iStock via Getty ImagesWe wrote about Hollysys Automation Technologies Ltd. (HOLI) last November when we stated that the company's first fiscal quarter earnings numbers may have the potential to finally force a hard bottom in the share price. Although the company missed bottom-line non-GAAP Q1 earnings estimates

Shareholder Returns

HOLIUS ElectronicUS Market
7D1.5%-3.2%-1.8%
1Y93.7%47.1%31.5%

Return vs Industry: HOLI exceeded the US Electronic industry which returned 49.3% over the past year.

Return vs Market: HOLI exceeded the US Market which returned 33% over the past year.

Price Volatility

Is HOLI's price volatile compared to industry and market?
HOLI volatility
HOLI Beta0.98
Industry Beta1.32
Market Beta1

Stable Share Price: HOLI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: HOLI's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19933,598Colin Sunghttps://www.hollysys.com

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 systems, including third-party hardware-centric products, such as instrumentation and actuators; proprietary software-centric distributed control systems/programmable logic controllers; and valued-added software packages comprising real-time management information system, HolliAS asset management system, operator training system, HolliAS batch application package, HolliAS advanced process control package, and safety instrumentation system, as well as HOLLiAS MACS-N DCS, a proprietary nuclear power non-safety automation and control system. It also provides train control center that monitors route condition, track status, train schedules, distance between trains, and the working status of other function devices, as well as generates control instructions and commands.

Valuation

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

0.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOLI ($21.02) is trading below our estimate of fair value ($21.09)

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


Price To Earnings Ratio

PE vs Industry: HOLI is good value based on its PE Ratio (18.5x) compared to the US Electronic industry average (20x).

PE vs Market: HOLI is poor value based on its PE Ratio (18.5x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: HOLI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: HOLI is good value based on its PB Ratio (1.2x) compared to the US Electronic industry average (2.6x).


Future Growth

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

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOLI's forecast earnings growth (17.6% per year) is above the savings rate (2%).

Earnings vs Market: HOLI's earnings (17.6% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: HOLI's revenue (8.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: HOLI's revenue (8.9% 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 (10.7%).


Past Performance

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

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOLI has a large one-off loss of $35.8M impacting its March 31 2021 financial results.

Growing Profit Margin: HOLI's current net profit margins (12.3%) are lower than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: HOLI's earnings have declined by 2.2% 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 (-32.4%) over the past year, making it difficult to compare to the Electronic industry average (40.3%).


Return on Equity

High ROE: HOLI's Return on Equity (6.3%) is considered low.


Financial Health

How is Hollysys Automation Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: HOLI's short term assets ($1.3B) exceed its short term liabilities ($400.1M).

Long Term Liabilities: HOLI's short term assets ($1.3B) exceed its long term liabilities ($47.3M).


Debt to Equity History and Analysis

Debt Level: HOLI's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: HOLI's debt to equity ratio has reduced from 4.7% to 1.4% over the past 5 years.

Debt Coverage: HOLI's debt is well covered by operating cash flow (665.1%).

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


Balance Sheet


Dividend

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

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HOLI's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HOLI's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.4%), 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 (9.9% payout ratio).


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Colin Sung (55 yo)

1.17yrs

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

Experienced Management: HOLI's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: HOLI's board of directors are not considered experienced ( 1.2 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 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$1.288b
  • Shares outstanding: 61.28m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:18
End of Day Share Price2021/09/21 00:00
Earnings2021/03/31
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.