Hollysys Automation Stock Analysis, Valuation (NASDAQ:HOLI)
Watch the robo advisor video of Hollysys Automation stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for HOLI stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Hollysys Automation Technologies Ltd Stock Rating 3.9/5
Amigobulls HOLI stock analysis relies on business fundamentals such as Hollysys Automation revenue growth, profits and return on equity measures from the latest quarter 2018 Q3 earnings. Hollysys Automation valuation forms a crucial part of our stock analysis. Our Hollysys Automation stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy HOLI stock?
- Long term revenue growth has been strong with a 5 year compounded annual growth of 10.4.
- The TTM operating margin was good at 20.22 for Hollysys Automation.
- Net margins stood at a healthy 19% (average) for Hollysys Automation in the Trailing Twelve Months.
- With its debt/equity ratio of 0.04, Hollysys Automation has a lower debt burden when compared to the Industrial Products average.
- The Hollysys Automation stock currently trades at a price to earnings ratio of 12.5, compared to the sector average of 20.5. We rate this as a positive.
- Hollysys Automation's return on invested capital of 16 is good.
Should you sell HOLI stock?
- The company's operations consume more cash than it generates. This is not a healthy sign.
- The company is trading at a price to sales multiple of 2.4, which is higher in comparison to the Industrial Products sector average of 1.4, making HOLI stock expensive.
- The company has a negative free cash flow margin of -55.3.
Amigobulls Hollysys Automation stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.
While doing a study of the company financials, Hollysys Automation revenue growth and profit or net income are two main metrics which help in identifying whether HOLI stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Hollysys Automation stock.