NasdaqGS:HOLI

Stock Analysis Report

Hollysys Automation Technologies

Executive Summary

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

Snowflake

Fundamentals

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

-2.8%

HOLI

-0.3%

US Electronic

0.7%

US Market


1 Year Return

-22.7%

HOLI

19.2%

US Electronic

13.7%

US Market

Return vs Industry: HOLI underperformed the US Electronic industry which returned 19.2% over the past year.

Return vs Market: HOLI underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

HOLIIndustryMarket
7 Day-2.8%-0.3%0.7%
30 Day5.6%4.9%4.7%
90 Day-5.7%13.3%6.1%
1 Year-21.6%-22.7%20.4%19.2%16.2%13.7%
3 Year-16.2%-18.6%51.3%47.0%48.8%39.2%
5 Year-34.8%-38.5%80.9%72.0%62.5%44.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HOLI ($15.35) is trading below our estimate of fair value ($40.45)

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 (7.3x) compared to the Electronic industry average (20.8x).

PE vs Market: HOLI is good value based on its PE Ratio (7.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HOLI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HOLI is good value based on its PB Ratio (1x) compared to the US Electronic industry average (2.1x).


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?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HOLI's forecast earnings growth (8.4% per year) is above the savings rate (2.7%).

Earnings vs Market: HOLI's earnings (8.4% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: HOLI's revenue (8.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HOLI's revenue (8.8% 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 (13.4%).


Next Steps

Past Performance

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

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOLI has high quality earnings.

Growing Profit Margin: HOLI's current net profit margins (22.9%) are higher than last year (20.2%).


Past Earnings Growth Analysis

Earnings Trend: HOLI's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: HOLI's earnings growth over the past year (11.7%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: HOLI earnings growth over the past year (11.7%) underperformed the Electronic industry 56.3%.


Return on Equity

High ROE: HOLI's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hollysys Automation Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: HOLI's short term assets ($1.1B) exceeds its short term liabilities ($319.2M)

Long Term Liabilities: HOLI's short term assets ($1.1B) exceeds its long term liabilities (32.0M)


Debt to Equity History and Analysis

Debt Level: HOLI's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: HOLI's debt to equity ratio has reduced from 8.6% to 0.3% over the past 5 years.

Debt Coverage: HOLI's debt is well covered by operating cash flow (3697.4%).

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


Balance Sheet

Inventory Level: HOLI has a low level of unsold assets or inventory.

Debt Coverage by Assets: HOLI's debt is covered by short term assets (assets are 389.1x debt).


Next Steps

Dividend

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

1.37%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.6%industryaverage1.5%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: HOLI's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: HOLI's dividend (1.37%) 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's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10%), HOLI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HOLI's dividends in 3 years are forecast to be thoroughly covered by earnings (8.9% payout ratio).


Next Steps

Management

What is the CEO of Hollysys Automation Technologies's salary, the management and board of directors tenure and is there insider trading?

11.4yrs

Average board tenure


CEO

Baiqing Shao (51yo)

6yrs

Tenure

0

Mr. Baiqing Shao has been the Chief Executive Officer of Hollysys Automation Technologies, Ltd. since November 30, 2013 and served as its Senior Vice President of Business Development at Hollysys Automatio ...


Board Age and Tenure

11.4yrs

Average Tenure

53yo

Average Age

Experienced Board: HOLI's board of directors are seasoned and experienced ( 11.4 years average tenure).


Insider Trading

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.


Management Team

  • Baiqing Shao (51yo)

    Co-Founder

    • Tenure: 6yrs
  • Steven Wang (51yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
  • Arden Xia

    Investor Relations Director

    • Tenure: 0yrs

Board Members

  • Colin Sung (53yo)

    Independent Director

    • Tenure: 11.8yrs
  • Jerry Zhang (47yo)

    Independent Director

    • Tenure: 12.2yrs
  • Qiao Li (61yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$150.00k
  • Jianyun Chai (58yo)

    Independent Director

    • Tenure: 11.4yrs
  • Baiqing Shao (51yo)

    Co-Founder

    • Tenure: 6yrs

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$926.251m
  • Shares outstanding: 60.34m
  • Website: https://www.hollysys.com.sg

Number of Employees


Location

  • Hollysys Automation Technologies Ltd.
  • No. 2 Disheng Middle Road
  • Beijing Economic-Technological Development 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 and control technologies and products in the People’s Republic of China, Southeast Asia, India, and the Middle East. The company offers a suite of  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 00:14
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.