HOLI Intrinsic Stock Value – HOLLYSYS AUTOMATION TECHNOLOGIES Reports Fourth Quarter FY2023 Earnings Results
August 25, 2023
🌥️Earnings Overview
On August 15 2023, HOLLYSYS AUTOMATION TECHNOLOGIES ($NASDAQ:HOLI) reported its financial results for the fourth quarter of FY2023 which concluded on June 30 2023. An impressive 7.1% year-on-year growth in revenue was seen, as it amounted to USD 195.0 million. Furthermore, net income increased by 11.7%, reaching USD 25.7 million.
Market Price
The company opened at $17.2 and closed the day at $17.1, a modest increase of 0.2% from its previous closing price of 17.1. Analysts reacted positively to the news and HOLLYSYS’ shares saw a slight rise in market value. The company stated that these results were driven by the increase in orders for industrial automation products and services. HOLLYSYS also announced its plans to expand its market share in the industrial automation sector, with an increased focus on developing new products and services for its customers.
The company also noted that it is investing in research and development to make sure they stay ahead of the competition in the sector. Overall, the financial results reported by HOLLYSYS were positive and investors remain optimistic about the company’s future prospects. The stock is expected to continue to rise as HOLLYSYS continues to develop more innovative products and services to meet its customers’ needs. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HOLI. More…
| Total Revenues | Net Income | Net Margin |
| 777.37 | 106.93 | 12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HOLI. More…
| Operations | Investing | Financing |
| 23.18 | -59.68 | 17.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HOLI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.68k | 508.62 | 18.95 |
Key Ratios Snapshot
Some of the financial key ratios for HOLI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.6% | -4.0% | 15.4% |
| FCF Margin | ROE | ROA |
| -2.3% | 6.2% | 4.4% |
Analysis – HOLI Intrinsic Stock Value
At GoodWhale, we conducted an analysis of HOLLYSYS AUTOMATION TECHNOLOGIES’ financials. Through our proprietary Valuation Line, we calculated the intrinsic value of HOLLYSYS AUTOMATION TECHNOLOGIES share to be around $17.7. We have determined that now HOLLYSYS AUTOMATION TECHNOLOGIES stock is traded at $17.1, which we consider a fair price, but undervalued by 3.6%. More…
Peers
The company’s products and services include programmable logic controllers (PLCs), distributed control systems (DCSs), supervisory control and data acquisition (SCADA) systems, human machine interfaces (HMIs), and drives and motors. Hollysys Automation Technologies Ltd has a strong presence in China and the Asia-Pacific region, and its products are used in over 50 countries worldwide. The company’s main competitors are Shenzhen Genvict Technologies Co Ltd, SPX Technologies Inc, YASKAWA Electric Corp, and Siemens AG.
– Shenzhen Genvict Technologies Co Ltd ($SZSE:002869)
Shenzhen Genvict Technologies Co Ltd has a market cap of 4.1B as of 2022, a Return on Equity of -3.9%. The company is a leading developer and manufacturer of Internet of Things (IoT) solutions, including intelligent transportation, public safety, and smart city solutions. It has a strong R&D team and a comprehensive product portfolio, and is committed to providing innovative and customized IoT solutions to its clients worldwide.
– SPX Technologies Inc ($NYSE:SPXC)
SPX Technologies Inc is a publicly traded company with a market capitalization of 3.2 billion as of 2022. The company has a return on equity of 3.59%. SPX Technologies Inc is engaged in the development, manufacture and sale of technologies and products for the global marketplace. The company’s products and services include: process equipment, analytical instrumentation, software and services.
– YASKAWA Electric Corp ($TSE:6506)
Yaskawa Electric Corp is a Japanese manufacturer of robotics, motion control products, and mechatronics products. The company has a market cap of 1.15 trillion as of 2022 and a return on equity of 12.38%. Yaskawa is a leading manufacturer of industrial robots and motion control products. The company’s products are used in a variety of industries including automotive, food and beverage, electronics, and metals. Yaskawa is committed to providing innovative solutions that enable its customers to improve their productivity and competitiveness.
Summary
HOLLYSYS AUTOMATION TECHNOLOGIES reported strong earnings growth for the fourth quarter of FY2023. Total revenue was up 7.1% year-over-year while net income jumped 11.7%. This indicates a healthy operational performance, driven by strong demand for its products and services.
For investors looking to add value to their portfolio, HOLLYSYS AUTOMATION TECHNOLOGIES is a promising option, especially given its low price-to-earnings ratio and high dividend yield. Furthermore, the company has a solid balance sheet and no debt, which suggests further upside potential in the medium-term.
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