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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Hollysys Automation Technologies Ltd. (NASDAQ:HOLI), it is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Hollysys Automation Technologies here.
Flawless balance sheet and good value
HOLI's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that HOLI has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. HOLI appears to have made good use of debt, producing operating cash levels of 6.02x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. HOLI's share price is trading below its true value according to its price-to-earnings ratio of 8.71x compared to its industry as well as the wider stock market, making it a relatively cheap stock compared to its peers.
For Hollysys Automation Technologies, I've compiled three key aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for HOLI’s future growth? Take a look at our free research report of analyst consensus for HOLI’s outlook.
Historical Performance: What has HOLI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HOLI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.