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Highway Holdings (HIHO)
NASDAQ:HIHO
US Market
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Highway Holdings (HIHO) AI Stock Analysis

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HIHO

Highway Holdings

(NASDAQ:HIHO)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
$0.80
▼(-30.69% Downside)
Action:Reiterated
Date:07/16/26
HIHO scores low primarily due to deteriorating financial performance—shrinking revenue, sharply negative profitability, higher debt, and negative operating/free cash flow. Technicals are more balanced (neutral momentum with mild stabilization), but the stock remains below its 200-day average. Valuation is constrained by negative earnings (negative P/E) and no provided dividend yield, offering limited support to offset the fundamental weakness.
Positive Factors
Diverse contract manufacturing model
Highway's contract-manufacturing model spans industrial, medical, telecom/networking and consumer sectors and includes engineering, tooling, finishing and assembly with Asia-based supply-chain operations. This breadth creates recurring program revenue, customer stickiness and diversification benefits over time.
Negative Factors
Sharp revenue decline
Revenues plunged over multiple years, from $12.4M in 2022 to $4.8M in 2026, representing a sustained structural decline. Lower sales undermine fixed-cost absorption, reduce pricing leverage, and signal potential customer program losses that could take many quarters to replace without new contract wins.
Read all positive and negative factors
Positive Factors
Negative Factors
Diverse contract manufacturing model
Highway's contract-manufacturing model spans industrial, medical, telecom/networking and consumer sectors and includes engineering, tooling, finishing and assembly with Asia-based supply-chain operations. This breadth creates recurring program revenue, customer stickiness and diversification benefits over time.
Read all positive factors

Highway Holdings (HIHO) vs. SPDR S&P 500 ETF (SPY)

Highway Holdings Business Overview & Revenue Model

Company Description
Highway Holdings Limited, including its various subsidiaries, is primarily involved in the creation and distribution of a wide array of components, subassemblies, and complete products. These offerings encompass metal, plastic, electrical, and ele...
How the Company Makes Money
Highway Holdings makes money primarily by providing contract manufacturing services to corporate customers and recognizing revenue from the sale of manufactured parts and assembled products. Its key revenue streams typically include: (1) manufactu...

Highway Holdings Financial Statement Overview

Summary
Financial performance is weak. Revenue has fallen sharply (from $12.4M in 2022 to $4.8M in 2026), profitability is currently deeply negative (2026 net margin ~-32%), leverage has risen (debt up to $3.2M in 2026 from $0.8M in 2025), and operating/free cash flow are negative in 2026 (OCF about -$1.4M; FCF about -$1.5M). While there were prior profitable/cash-positive periods, the latest year signals elevated execution and liquidity risk.
Income Statement
22
Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
BreakdownTTMMar 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue5.36M4.80M7.41M6.32M10.24M12.37M
Gross Profit1.43M1.37M2.47M1.71M3.14M3.77M
EBITDA-1.21M-1.46M756.00K-381.00K828.00K1.67M
Net Income-742.00K-1.52M106.00K-959.00K-294.00K443.00K
Balance Sheet
Total Assets7.72M11.32M9.55M11.32M13.88M14.86M
Cash, Cash Equivalents and Short-Term Investments5.13M4.41M6.18M6.60M7.01M7.38M
Total Debt318.00K3.15M810.00K1.39M2.06M1.20M
Total Liabilities1.87M5.88M3.29M4.68M5.67M5.59M
Stockholders Equity5.87M4.89M6.27M6.64M8.20M9.27M
Cash Flow
Free Cash Flow0.00-1.51M-461.00K297.00K717.00K-298.00K
Operating Cash Flow0.00-1.41M-360.00K415.00K809.00K-164.00K
Investing Cash Flow0.00-109.00K232.00K-102.00K991.00K-1.20M
Financing Cash Flow0.00-25.00K-492.00K-557.00K-920.00K-549.00K

Highway Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.16
Price Trends
50DMA
0.79
Positive
100DMA
0.82
Positive
200DMA
1.06
Negative
Market Momentum
MACD
0.01
Positive
RSI
50.48
Neutral
STOCH
43.49
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 1.16 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.79, and above the 200-day MA of 1.06, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 43.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIHO.

Highway Holdings Risk Analysis

Highway Holdings disclosed 33 risk factors in its most recent earnings report. Highway Holdings reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Highway Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
50
Neutral
$45.71M-26.99-13.31%-7.02%43.85%
46
Neutral
$3.88M-2.47-8.38%9.60%-35.17%-1495.76%
46
Neutral
$162.20M-2.41-145.82%6.27%-1660.64%
40
Underperform
$8.19M-0.02-81.84%15.47%74.09%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HIHO
Highway Holdings
0.82
-0.81
-49.69%
AP
Ampco-Pittsburgh
8.11
4.88
151.08%
TPCS
TechPrecision
4.62
1.26
37.50%
MTEN
Mingteng International Corp., Inc.
1.20
-3,994.80
-99.97%
LNKS
Linkers Industries Limited Class A
1.33
-131.07
-99.00%

Highway Holdings Corporate Events

Highway Holdings Announces Resignations of Two Board Directors
Jun 4, 2026
Highway Holdings Limited, a Hong Kong-based foreign private issuer listed in the U.S., operates under the Securities Exchange Act framework and files its annual reports on Form 20-F. The company maintains its principal executive offices in Sheung ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2026