Yahoo Finance Reasons Why I Like Hollysys Automation Technologies Ltd (NASDAQ:HOLI)
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Hollysys Automation Technologies Ltd (NASDAQ:HOLI) due to its excellent fundamentals in more than one area. HOLI is a financially-robust company with a a strong history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Hollysys Automation Technologies here.
Flawless balance sheet and good value
Over the past year, HOLI has grown its earnings by 25.29%, with its most recent figure exceeding its annual average over the past five years. Not only did HOLI outperformed its past performance, its growth also exceeded the Electronic industry expansion, which generated a 16.59% earnings growth. This is an notable feat for the company. HOLI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that HOLI has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. HOLI’s has produced operating cash levels of 3.59x total debt over the past year, which implies that HOLI’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
HOLI’s shares are now trading at a price below its true value based on its PE ratio of 13.56x, compared to the industry and wider stock market ratio, making it a relatively cheap stock compared to its peers.
Next Steps:
For Hollysys Automation Technologies, I’ve put together three essential factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for HOLI’s future growth? Take a look at our free research report of analyst consensus for HOLI’s outlook.
Dividend Income vs Capital Gains: Does HOLI return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from HOLI as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HOLI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
