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 3.6/5
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?
- Revenue growth has been tremendous with a compounded annual growth of 10.4 over the last 5 years.
- Hollysys Automation had a healthy average operating margin of 20.22 over the last 4 quarters.
- Net margins came in at average 19% for Hollysys Automation over the last twelve months.
- Hollysys Automation has a lower debt burden than its peers in the -sectordesc- sector, with a debt/equity ratio of 0.04.
- HOLI stock is trading at an earnings multiple of 13.4 which is better than the sector average of 21.2.
- Hollysys Automation has an attractive ROIC (Return on Invested Capital) of 16
Should you sell HOLI stock?
- The company has negative cash flow from operations.
- HOLI stock is trading at a PS multiple of 2.6, which is a negative when compared to the Industrial Products sector average multiple of 1.4.
- Hollysys Automation has a negative FCF (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.