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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)

Rating:51Neutral
Price Target:
$1.50
▼(-14.29% Downside)
Highway Holdings' overall stock score reflects significant financial challenges, with declining revenues and cash flow issues being major concerns. The technical analysis suggests a bearish trend, while the high P/E ratio indicates overvaluation despite an attractive dividend yield. These factors collectively contribute to a cautious outlook.

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

Highway Holdings Business Overview & Revenue Model

Company DescriptionHighway Holdings Limited (HIHO) is a Hong Kong-based company specializing in the manufacturing and distribution of a wide range of products, primarily in the automotive and consumer electronics sectors. The company is known for its expertise in producing metal and plastic components, as well as its ability to handle complex assembly processes. Highway Holdings serves a diverse clientele, including leading global brands, providing them with high-quality products tailored to meet their specific needs.
How the Company Makes MoneyHighway Holdings generates revenue through its manufacturing operations, where it produces components and assemblies for its clients in various industries, including automotive and consumer electronics. The company earns money primarily through direct sales of its products, which include metal and plastic components. Additionally, Highway Holdings benefits from long-term contracts and partnerships with established brands, ensuring a steady stream of income. The company also explores opportunities for value-added services such as product design and development, which can enhance its revenue potential. Factors contributing to its earnings include its ability to maintain cost-effective production processes, a strong supply chain, and ongoing relationships with key customers.

Highway Holdings Financial Statement Overview

Summary
Highway Holdings faces significant challenges with declining revenues and fluctuating profitability. Despite operational improvements in profit margins and a healthier balance sheet, cash flow management remains a critical area of concern. The company needs to address its revenue and cash generation strategies to enhance financial stability.
Income Statement
55
Neutral
Highway Holdings has experienced a decline in revenue from $12.56M in 2020 to $7.41M in 2025, reflecting a negative growth trajectory. The gross profit margin improved from 33.1% in 2020 to 33.3% in 2025, indicating stable operational efficiency. However, the net profit margin improved only slightly from a negative position of -3.6% in 2020 to 1.4% in 2025. The repeated negative EBIT and EBITDA margins highlight ongoing operational challenges.
Balance Sheet
70
Positive
The company's debt-to-equity ratio decreased from 0.26 in 2020 to 0.13 in 2025, showcasing improved financial leverage. The equity ratio remained stable, indicating a solid capital structure with stockholders' equity consistently covering a significant portion of total assets. Return on equity improved from -6.3% in 2020 to 1.7% in 2025, reflecting recovering profitability.
Cash Flow
45
Neutral
Operating cash flow turned negative in 2025 at -$0.36M, a concerning trend from the positive $0.44M in 2020. Free cash flow also deteriorated, indicating potential cash management challenges. The free cash flow to net income ratio reflects volatility, pointing towards inconsistencies in cash generation relative to earnings.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue7.41M6.32M10.24M12.37M9.17M
Gross Profit2.47M1.71M3.14M3.77M2.71M
EBITDA74.00K-11.00K664.00K1.66M384.00K
Net Income106.00K-959.00K-293.00K443.00K-454.00K
Balance Sheet
Total Assets9.55M11.32M13.88M14.86M15.49M
Cash, Cash Equivalents and Short-Term Investments5.97M6.60M6.95M7.08M7.76M
Total Debt810.00K1.39M2.06M1.20M1.96M
Total Liabilities3.29M4.68M5.67M5.59M5.71M
Stockholders Equity6.27M6.64M8.20M9.27M9.76M
Cash Flow
Free Cash Flow-461.00K297.00K717.00K-298.00K-192.00K
Operating Cash Flow-360.00K415.00K809.00K-164.00K-104.00K
Investing Cash Flow232.00K-102.00K991.00K-1.20M-78.00K
Financing Cash Flow-492.00K-557.00K-920.00K-549.00K-902.00K

Highway Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.75
Price Trends
50DMA
1.65
Positive
100DMA
1.67
Positive
200DMA
1.78
Negative
Market Momentum
MACD
0.01
Negative
RSI
63.96
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIHO, the sentiment is Positive. The current price of 1.75 is above the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.65, and below the 200-day MA of 1.78, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$510.21M15.919.14%5.83%33.50%
66
Neutral
$106.63M11.2811.00%14.32%
64
Neutral
$10.95B16.378.81%1.96%2.68%-15.33%
51
Neutral
$7.69M69.181.64%6.86%17.26%
49
Neutral
$51.66M-23.42%3.78%78.39%
40
Underperform
$59.33M15.81-8.37%-3.95%88.17%
38
Underperform
$5.58M-240.46%-50.14%81.11%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HIHO
Highway Holdings
1.75
-0.01
-0.57%
AP
Ampco-Pittsburgh
2.76
0.77
38.69%
GIFI
Gulf Island Fabrication
6.93
1.07
18.26%
NWPX
Northwest Pipe Company
53.37
9.07
20.47%
SGBX
Sg Blocks
0.18
-0.95
-84.07%
TPCS
TechPrecision
5.36
1.86
53.14%
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: Aug 19, 2025