Highway Holdings (HIHO) AI Stock Analysis

• Market Cap: $7.75M
• Dividend Yield: 11.36%
• Average Volume (3M): 28.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 11.36%
• EPS Growth: 22.93%
• Country: US
• Employees: 374
• Sector: Industrials
• Sector Strength: 90
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.17
• Shares Outstanding: 4,401,825
• 10 Day Avg. Volume: 10,013
• 30 Day Avg. Volume: 28,433
• PEG Ratio: 0.34
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: -1.19
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: ―

Highway Holdings is facing significant financial and operational challenges, reflected in declining revenues and profitability. The technical indicators also suggest a bearish trend, with the stock trading below key moving averages and negative momentum signals. Although valuation is complicated due to negative earnings, the high dividend yield offers some attraction for income-seeking investors. Overall, the stock scores low due to these financial and technical challenges.

Highway Holdings Business Overview & Revenue Model

Company Description

Highway Holdings Limited, together with its subsidiaries, manufactures and supplies metal, plastic, electric, and electronic components, subassemblies, and finished products for original equipment manufacturers (OEMs) and contract manufacturers. It operates through two segments, Metal Stamping and Mechanical OEM; and Electric OEM. The company also trades in plastic injection products; and manufactures and assembles automation equipment. Its products are used in the manufacture of products, such as photocopiers, laser printers, print cartridges, electrical connectors, electrical circuits, vacuum cleaners, LED power supplies, stepping motors, pumps for dishwashers, and other washing machine components. In addition, the company assists customers in the design and development of the tooling used in the metal and plastic manufacturing process, as well as provides an array of other manufacturing and engineering services, including metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. It operates in Hong Kong and China, Europe, North America, and other Asian countries. Highway Holdings Limited was incorporated in 1990 and is headquartered in Sheung Shui, Hong Kong.

How the Company Makes Money

Highway Holdings makes money by providing manufacturing services to a diverse clientele of original equipment manufacturers. The company's revenue model is primarily based on contracts and agreements with these OEMs, where it offers manufacturing and assembly services for their products. Highway Holdings generates revenue through the production of various components and subassemblies, offering value-added services such as design assistance, prototyping, and logistics support. The company benefits from long-term relationships with its clients, which help ensure a steady stream of manufacturing orders. Additionally, Highway Holdings may engage in partnerships with other firms to expand its capabilities and market reach, although specific partnership details are not disclosed.

Highway Holdings Financial Statement Overview

Summary

Highway Holdings faces significant financial challenges, with declining revenues, negative profitability, and strained cash flows. The balance sheet shows a moderate level of debt, but negative net income impacts return on equity, indicating inefficient equity use.

Income Statement

Highway Holdings has experienced a significant decline in revenue and profitability over recent years, with a negative revenue growth rate and shrinking profit margins. The gross profit margin has decreased, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies and challenges in cost management.

Balance Sheet

The company maintains a moderate level of debt with a manageable debt-to-equity ratio. However, the return on equity is negative due to consistent net losses, which indicates inefficient use of equity. The equity ratio is decent, which suggests a reasonable level of shareholder financing relative to total assets.

Cash Flow

Operating cash flow is positive but has decreased significantly, reflecting challenges in converting operations into cash. Free cash flow has also decreased, showing increased strain on liquidity. The operating cash flow to net income ratio suggests some improvement in cash generation despite net losses.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.85M	6.32M	10.24M	12.37M	9.17M	12.56M
	Gross Profit
1.99M	1.71M	3.14M	3.77M	2.71M	4.15M
	EBIT
-1.23M	-769.00K	-516.00K	-520.00K	-565.00K	-495.00K
	EBITDA
-190.00K	-11.00K	664.00K	1.66M	384.00K	1.97M
	Net Income Common Stockholders
-523.00K	-959.00K	-293.00K	443.00K	-454.00K	686.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.83M	6.60M	6.95M	7.08M	7.76M	8.83M
	Total Assets
18.17M	11.32M	13.88M	14.86M	15.49M	18.17M
	Total Debt
2.82M	1.39M	2.06M	1.20M	1.96M	2.82M
	Net Debt
-6.01M	-5.21M	-4.90M	-4.81M	-5.79M	-6.01M
	Total Liabilities
7.25M	4.68M	5.67M	5.59M	5.71M	7.25M
	Stockholders Equity
10.91M	6.64M	8.20M	9.27M	9.76M	10.91M
Cash Flow		Free Cash Flow
0.00	297.00K	717.00K	-298.00K	-192.00K	351.00K
	Operating Cash Flow
0.00	415.00K	809.00K	-164.00K	-104.00K	442.00K
	Investing Cash Flow
0.00	-102.00K	991.00K	-1.20M	-78.00K	-64.00K
	Financing Cash Flow
0.00	-557.00K	-920.00K	-549.00K	-902.00K	-297.00K

Highway Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIHO, the sentiment is Negative. The current price of 1.76 is below the 20-day moving average (MA) of 1.81, above the 50-day MA of 1.69, and below the 200-day MA of 1.83, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIHO.

Highway Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIFI	72 Outperform	$109.18M	9.17	13.54%	―	18.83%	―
AP	71 Outperform	$62.49M	14.88	7.11%	―	-3.60%	―
NWPX	67 Neutral	$390.28M	11.98	9.13%	―	8.06%	38.46%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
SGBX	45 Neutral	$7.87M	―	308.54%	―	-69.32%	63.86%
HIHO	44 Neutral	$7.75M	―	-10.62%	11.36%	11.36%	22.93%
TPCS	43 Neutral	$33.35M	―	-76.24%	―	8.71%	-164.66%