Hollysys Automation Technologie

Hollysys Automation Technologies provides automation control solutions in China, Southeast Asia, India, and the Middle East. The company offers industrial automation systems, including hardware and software products. Its suite includes instrumentation, actuators, DCS/PLCs, simulation training system, and asset management system. It also provides train control center, automation train protection, signaling products, and supervisory control and data acquisition system. Additionally, the company offers integrated automation control solutions, mechanical and electrical solutions, design services, project management, and maintenance services. Hollysys Automation Technologies was founded in 1993 and is headquartered in Beijing, China. As of July 25, 2024, the company was taken private.

Overview

Sector

Electrical Components

Target Price

8.9 USD

Current Price

26.4 USD

Potential

-66%

Strengths

Current Price to Earnings Ratio (15.32) is lower than the sector mean (49.54).
Price to book ratio (1.39) is lower than the sector mean (2.96).
The company has low debt. Net Debt to EBITDA Ratio is -4.74 and it is lower than the sector mean.
EV/EBITDA (8.67) is lower than the sector mean (37.04).
EV/EBIT (8.87) is lower than the sector mean.

Weaknesses

With a depreciation Potential of -66.40%, based on our fundamental analysis, it suggests the stock may be overvalued.
Analysts expect revenues to decline in the coming year.
The company have lower returns than the sector in which it operates. ROIC (1.92%) is significantly lower than the sector mean (10.79%).
The Price to Free Cash Flow ratio (100.00) is significantly higher than the sector mean.

Key Financial Data

Indicator	Value
PER	15.3
EV/EBITDA	8.7
Price/Free Cash Flow'	100.0
ROIC	1.9%
Net Debt/EBITDA	-4.7