Hollysys Automation Technologies, Ltd. (HOLI) Company Bio
HollySys Automation Technologies Ltd. provides automation and control technologies and products to customers in industrial, railway, subway, nuclear power, building retrofit, and mechanical and electronic industries primarily in China, Hong Kong, Southeast Asia, and the Middle East. The company was founded in 1993 and is based in Beijing, China.
HOLI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Hollysys Automation Technologies Ltd. To summarize, we found that Hollysys Automation Technologies Ltd ranked in the 73th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 255.33% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Hollysys Automation Technologies Ltd, consider:
Interest coverage, a measure of earnings relative to interest payments, is 319.85 -- which is good for besting 98.78% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 11.59% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
HOLI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 47.19% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Hollysys Automation Technologies Ltd? See QUAD, NWPX, RCII, AAWW, and AIT.
I've complained in the past that HollySys (HOLI) is not exactly "shareholder-friendly" even by the standards of publicly-traded Chinese companies. To illustrate this point, the company removed its CEO and Chairman back in July, but you wouldn't know that from the company website; to the best I can find (in...
Stephen Simpson, CFA on Seeking Alpha | August 14, 2020
HollySys ([[HOLI]] -2.3%) Q4 revenues was $129.2M, a decrease of 17.7% vs. Q2 2019, misses analyst estimates by $18.53M.Revenue breakup: Industrial automation-55.6%, Tail transportation automation- 38.1%, Mechanical and electrical solution-6.3%.Gross margin was at 44.7%, compared to 34% last year.Non-GAAP net income was $2.2M.Non-GAAP diluted EPS was at $0.04, a decrease of...
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