Holley Inc. Fundamental Analysis (NYSE: HLLY)
Holley Inc. (NYSE: HLLY) shows weak financial fundamentals with a PE ratio of 15.39, profit margin of 3.07%, and ROE of 4.18%. The company generates $0.6B in annual revenue with weak year-over-year growth of 1.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HLLY's fundamental strength across five key dimensions:
Efficiency Score
WeakHLLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHLLY trades at attractive valuation levels.
Growth Score
WeakHLLY faces weak or negative growth trends.
Financial Health Score
ModerateHLLY shows balanced financial health with some risks.
Profitability Score
WeakHLLY struggles to sustain strong margins.
Key Financial Metrics
Is HLLY Expensive or Cheap?
P/E Ratio
HLLY trades at 15.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HLLY's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values Holley Inc. at 0.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.16 times EBITDA. This is generally considered low.
How Well Does HLLY Make Money?
Net Profit Margin
For every $100 in sales, Holley Inc. keeps $3.07 as profit after all expenses.
Operating Margin
Core operations generate 9.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.18 in profit for every $100 of shareholder equity.
ROA
Holley Inc. generates $1.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Holley Inc. produces operating cash flow of $64.39M, showing steady but balanced cash generation.
Free Cash Flow
Holley Inc. produces free cash flow of $43.55M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
HLLY converts 14.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How HLLY Stacks Against Its Sector Peers
| Metric | HLLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.39 | 24.94 | Better (Cheaper) |
| ROE | 4.18% | 965.00% | Weak |
| Net Margin | 3.07% | -2081.00% (disorted) | Weak |
| Debt/Equity | 1.18 | 0.71 | Weak (High Leverage) |
| Current Ratio | 3.04 | 2.36 | Strong Liquidity |
| ROA | 1.67% | 364.00% | Weak |
HLLY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Holley Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-30.92%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-66.87%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-70.32%
Industry Style: Cyclical, Growth, Discretionary
Declining