Highway Holdings Limited
Find Ratings ReportsHIGHWAY HOLDINGS LTD's gross profit margin for the second quarter of its fiscal year 2020 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. HIGHWAY HOLDINGS LTD is extremely liquid. Currently, the Quick Ratio is 2.39 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.43% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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| Income Statement | Q2 FY20 | Q2 FY19 |
|---|---|---|
| Net Sales ($mil) | 2.72 | 3.2 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | 0.23 | -0.17 |
| Net Income ($mil) | 0.23 | -0.09 |
| Balance Sheet | Q2 FY20 | Q2 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 8.64 | 8.04 |
| Total Assets ($mil) | 16.74 | 16.34 |
| Total Debt ($mil) | 2.5 | 0.71 |
| Equity ($mil) | 10.49 | 10.24 |
| Profitability | Q2 FY20 | Q2 FY19 |
|---|---|---|
| Gross Profit Margin | 34.28 | 26.45 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | 8.61 | -5.29 |
| Sales Turnover | 0.67 | 0.78 |
| Return on Assets | 5.3 | -4.2 |
| Return on Equity | 8.47 | -6.71 |
| Debt | Q2 FY20 | Q2 FY19 |
|---|---|---|
| Current Ratio | 2.79 | 2.4 |
| Debt/Capital | 0.19 | 0.06 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q2 FY20 | Q2 FY19 |
|---|---|---|
| Shares outstanding (mil) | 3.97 | 3.9 |
| Div / share | 0.1 | 0.0 |
| EPS | 0.06 | -0.02 |
| Book value / share | 2.64 | 2.63 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 52033.0 | 365007.0 |
BUY. HIGHWAY HOLDINGS LTD's P/E ratio indicates a significant discount compared to an average of 40.48 for the Fabricated Metal Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 38.64. For additional comparison, its price-to-book ratio of 1.64 indicates a significant discount versus the S&P 500 average of 4.02 and a significant discount versus the subsector average of 6.53. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, HIGHWAY HOLDINGS LTD proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| HIHO 19.64 | Peers 40.13 | HIHO NA | Peers 18.97 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. HIHO is trading at a significant discount to its peers. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| HIHO NA | Peers 34.18 | HIHO NA | Peers 1.11 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| HIHO 1.64 | Peers 6.53 | HIHO 222.22 | Peers 4.76 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HIHO is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. HIHO is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| HIHO 1.52 | Peers 1894.34 | HIHO -11.58 | Peers -7.42 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HIHO is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. HIHO significantly trails its peers on the basis of sales growth. |
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