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HOLI

Hollysys Automation Technologies NasdaqGS:HOLI Stock Report

Last Price

US$14.96

Market Cap

US$927.0m

7D

-2.2%

1Y

18.2%

Updated

15 May, 2022

Data

Company Financials +
HOLI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends2/6

HOLI Stock 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$14.96
52 Week HighUS$21.24
52 Week LowUS$11.05
Beta0.84
1 Month Change-6.56%
3 Month Change5.95%
1 Year Change18.17%
3 Year Change-18.92%
5 Year Change-11.37%
Change since IPO187.69%

Recent News & Updates

Mar 05

Hollysys Finds Its Future In Its Past, But Investability Is A Real Question

Hollysys has brought back its founding CEO and announced that it is no longer considering go-private offers. Since my last article, the company has changed auditors, changed CEO, and reported FQ4'21 earnings almost eight months after quarter's end, with minimal explanation for any of it. Hollysys has a credible opportunity in process automation within China, and perhaps recovery potential in the rail business, but communication with investors has been very poor. Hollysys may well be exceptionally cheap here, but I consider it effectively uninvestable given poor/inconsistent communication and no recent information on strategy/strategic priorities.

Shareholder Returns

HOLIUS ElectronicUS Market
7D-2.2%-1.4%-2.5%
1Y18.2%-12.3%-10.4%

Return vs Industry: HOLI exceeded the US Electronic industry which returned -12.3% over the past year.

Return vs Market: HOLI exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is HOLI's price volatile compared to industry and market?
HOLI volatility
HOLI Average Weekly Movement7.7%
Electronic Industry Average Movement7.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: HOLI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HOLI's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19933,876Changli Wanghttps://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 hardware-centric products, such as instrumentation and actuators; proprietary software-centric distributed control systems/programmable logic controllers; and valued-added software packages comprising simulation training system, HolliAS asset management system, advanced process control, and manufacturing execution 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.

Hollysys Automation Technologies Fundamentals Summary

How do Hollysys Automation Technologies's earnings and revenue compare to its market cap?
HOLI fundamental statistics
Market CapUS$926.96m
Earnings (TTM)US$82.10m
Revenue (TTM)US$684.11m

11.3x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HOLI income statement (TTM)
RevenueUS$684.11m
Cost of RevenueUS$446.03m
Gross ProfitUS$238.08m
Other ExpensesUS$155.99m
EarningsUS$82.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.32
Gross Margin34.80%
Net Profit Margin12.00%
Debt/Equity Ratio1.3%

How did HOLI perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

24%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


11.29x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: HOLI ($14.96) is trading above our estimate of fair value ($3.53)

Significantly Below Fair Value: HOLI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HOLI is good value based on its PE Ratio (11.3x) compared to the US Electronic industry average (15.4x).

PE vs Market: HOLI is good value based on its PE Ratio (11.3x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HOLI is good value based on its PB Ratio (0.8x) compared to the US Electronic industry average (1.8x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-2.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HOLI's forecast earnings growth is above the savings rate (1.9%).

Earnings vs Market: Insufficient data to determine if HOLI's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HOLI's revenue is expected to decline over the next 3 years (-2.6% per year).

High Growth Revenue: HOLI's revenue is forecast to decline over the next 3 years (-2.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HOLI's Return on Equity is forecast to be high in 3 years time


Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HOLI has high quality earnings.

Growing Profit Margin: HOLI's current net profit margins (12%) are lower than last year (12.3%).


Past Earnings Growth Analysis

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

Accelerating Growth: HOLI's earnings growth over the past year (18.1%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: HOLI earnings growth over the past year (18.1%) underperformed the Electronic industry 37.6%.


Return on Equity

High ROE: HOLI's Return on Equity (6.6%) is considered low.


Financial Health

How is Hollysys Automation Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HOLI's short term assets ($1.5B) exceed its short term liabilities ($482.6M).

Long Term Liabilities: HOLI's short term assets ($1.5B) exceed its long term liabilities ($22.1M).


Debt to Equity History and Analysis

Debt Level: HOLI has more cash than its total debt.

Reducing Debt: HOLI's debt to equity ratio has reduced from 4.2% to 1.3% over the past 5 years.

Debt Coverage: HOLI's debt is well covered by operating cash flow (292.1%).

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?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HOLI's dividend (2.14%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: HOLI's dividend (2.14%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.7%), HOLI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (98.1%), HOLI's dividend payments are not well covered by cash flows.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Changli Wang (58 yo)

0.33

Tenure

US$466,391

Compensation

Dr. Changli Wang serves as Chief Executive Officer, Chief Strategy Officer and Director at Hollysys Automation Technologies Ltd. since January 01, 2022. He has been the Chief Executive Officer of Beijing H...


Leadership Team

Experienced Management: HOLI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: HOLI's board of directors are not considered experienced ( 1.7 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
  • Implied Market Cap: US$926.955m
  • Shares outstanding: 61.96m
  • 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 Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.