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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Hollysys Automation Technologies Ltd. (NASDAQ:HOLI), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Hollysys Automation Technologies here.
Flawless balance sheet and good value
HOLI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. HOLI seems to have put its debt to good use, generating operating cash levels of 6.02x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. HOLI’s share price is trading below its true value according to its price-to-earnings ratio of 8.76x compared to its industry as well as the wider stock market, so potential investors can purchase the stock below its value.
For Hollysys Automation Technologies, I’ve put together three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for HOLI’s future growth? Take a look at our free research report of analyst consensus for HOLI’s outlook.
- Historical Performance: What has HOLI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HOLI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.