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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Hollysys Automation Technologies

(

HOLI

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Hollysys Automation Technologies as such a stock due to the following factors:

  • HOLI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.7 million.
  • HOLI has traded 11,236 shares today.
  • HOLI is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HOLI with the Ticky from Trade-Ideas. See the FREE profile for HOLI NOW at Trade-Ideas

More details on HOLI:

Hollysys Automation Technologies Ltd. HOLI has a PE ratio of 19.2. Currently there are 3 analysts that rate Hollysys Automation Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Recommends

The average volume for Hollysys Automation Technologies has been 470,200 shares per day over the past 30 days. Hollysys Automation has a market cap of $1.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.35 and a short float of 2.2% with 1.98 days to cover. Shares are up 28.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hollysys Automation Technologies as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • HOLI's very impressive revenue growth greatly exceeded the industry average of 9.2%. Since the same quarter one year prior, revenues leaped by 58.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • HOLI's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HOLI has a quick ratio of 1.58, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, HOLI's share price has jumped by 84.40%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HOLI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 38.00% is the gross profit margin for HOLLYSYS AUTOMATION TECH LTD which we consider to be strong. Regardless of HOLI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HOLI's net profit margin of 10.44% compares favorably to the industry average.
  • HOLLYSYS AUTOMATION TECH LTD's earnings per share declined by 15.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, HOLLYSYS AUTOMATION TECH LTD reported lower earnings of $0.92 versus $1.01 in the prior year. This year, the market expects an improvement in earnings ($1.47 versus $0.92).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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