Hollysys Automation Stock Analysis, Valuation (NASDAQ:HOLI)

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$26.04 $0.41 (1.6%) HOLI stock closing price Feb 16, 2018 (Closing)
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Hollysys Automation
Updated on : Feb 16, 2018
previous close
HOLI 26 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
indstrial Automation-Robotics
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q2
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
8.8%
Operating Profit
Operating Margin:
19.4%
Sector Average:
8.6%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
32.2M
Debt/Equity Ratio:
 0.04
Compared to the industry
Cash Flow
Operating cash flow:
$36.1M
Net Income:
$36.2M
Dividend Yield
HOLI dividend yield:
0.46%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
ROIC
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
HOLI PS :
3.1
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
15.3%
Return on Equity:
13%
Free Cash Flow Margin:
22.6%
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Hollysys Automation Stock Analysis

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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 4.2/5

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 Q2 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?

  • The company saw a significant growth in revenue with a 5 year CAGR of 8.8%.
  • Hollysys Automation had a healthy average operating margin of 19.4% over the last 4 quarters.
  • Net margins stood at a healthy 18.9% (average) for Hollysys Automation in the Trailing Twelve Months.
  • With a debt/equity ratio of  0.04, Hollysys Automation is comparatively less leveraged than its peers in the Industrial Products sector.
  • The price to earnings multiple of 16.8 is attractive when compared with the industry average PE ratio of 22.8.
  • Hollysys Automation's return on invested capital of 15.3% is good.
  • The company has a healthy free cash flow margin of 22.6%.

Should you sell HOLI stock?

  • The company is trading at a price to sales multiple of 3.1, which is overvalued in comparison to the indstrial Automation-Robotics industry average multiple of 1.5.

Comments on this video and Hollysys Automation stock

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.