HLLY is now undervalued and could go up 355%
Holley, headquartered in Bowling Green, Kentucky, manufactures automotive aftermarket products and employs 1,594 people, offering over 70 brands across 30 categories, including performance and safety products. The company went public on November 27, 2020.
Based on our analysis, Holley Inc. is currently rated 4 out of 5 stars for being undervalued. Several key financial ratios indicate that the company is trading at a discount compared to its industry peers, suggesting potential for growth.
The price-to-book (PB) ratio for Holley stands at 0.86, significantly lower than the sector average of 1.98. A PB ratio below 1 typically indicates that the stock may be undervalued, as it suggests that investors are paying less than the company's net asset value. This could present an opportunity for investors looking for undervalued stocks.
Additionally, Holley's net profit margin is -3.86, in contrast to the sector average of -0.14. While a negative profit margin indicates that the company is currently operating at a loss, it is important to note that the sector as a whole is also struggling. Holley's relatively larger loss could suggest room for operational improvements that, if successfully implemented, could enhance profitability.
The return on equity (ROE) for Holley is -5.52, compared to the sector average of 0.26. A negative ROE indicates that the company is not generating profit from shareholder equity, but this figure also highlights potential for improvement as the company addresses its financial challenges.
Lastly, the return on assets (ROA) ratio is -2.05, versus a sector average of -0.52. This negative ROA reflects inefficiencies in asset utilization, which, if improved, could lead to better overall performance.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary