Highway Holdings (HIHO) AI Stock Analysis

• Market Cap: $7.32M
• Dividend Yield: 12.58%
• Average Volume (3M): 8.62K
• Price to Earnings (P/E): 66.0
• Beta (1Y): 0.17
• Revenue Growth: 17.26%
• EPS Growth: N/A
• Country: US
• Employees: 374
• Sector: Industrials
• Sector Strength: 89
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.07
• Shares Outstanding: 4,601,825
• 10 Day Avg. Volume: 11,576
• 30 Day Avg. Volume: 8,615
• PEG Ratio: 0.59
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: -0.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: $1.50 ▼(-7.98%Downside)

Highway Holdings' overall stock score is primarily affected by its financial performance and technical analysis. The company's financial struggles, particularly in revenue and cash flow management, are significant concerns. Additionally, technical indicators point to bearish momentum, further impacting the stock's attractiveness. While the dividend yield is high, the elevated P/E ratio suggests potential overvaluation.

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 generates revenue primarily through its manufacturing services by producing components and finished products for its clients. The company's key revenue streams include contract manufacturing and assembly services offered to OEMs and ODMs. These services encompass the production of electronic and mechanical components, as well as the assembly of these components into subassemblies or complete products. Highway Holdings may also benefit from long-term contracts and partnerships with major clients, providing stability and recurring revenue. Additionally, the company’s strategic location in Asia allows it to capitalize on cost-effective manufacturing processes, contributing to its profitability.

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

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.85M	7.41M	6.32M	10.24M	12.37M	9.17M
Gross Profit	1.99M	2.47M	1.71M	3.14M	3.77M	2.71M
EBITDA	-190.00K	74.00K	-11.00K	664.00K	1.66M	384.00K
Net Income	-523.00K	106.00K	-959.00K	-293.00K	443.00K	-454.00K
Balance Sheet
Total Assets	10.88M	9.55M	11.32M	13.88M	14.86M	15.49M
Cash, Cash Equivalents and Short-Term Investments	5.99M	5.97M	6.60M	6.95M	7.08M	7.76M
Total Debt	1.25M	810.00K	1.39M	2.06M	1.20M	1.96M
Total Liabilities	4.34M	3.29M	4.68M	5.67M	5.59M	5.71M
Stockholders Equity	6.55M	6.27M	6.64M	8.20M	9.27M	9.76M
Cash Flow
Free Cash Flow	0.00	-461.00K	297.00K	717.00K	-298.00K	-192.00K
Operating Cash Flow	0.00	-360.00K	415.00K	809.00K	-164.00K	-104.00K
Investing Cash Flow	0.00	232.00K	-102.00K	991.00K	-1.20M	-78.00K
Financing Cash Flow	0.00	-492.00K	-557.00K	-920.00K	-549.00K	-902.00K

Highway Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.63
• 50DMA: Negative
• 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 1.63 is below the 20-day moving average (MA) of 1.72, below the 50-day MA of 1.74, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 21.38 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	$111.46M	9.32	13.54%	―	18.83%	―
NWPX	72 Outperform	$416.26M	12.81	9.13%	―	8.06%	38.46%
Sector *	67 Neutral	£2.80B	13.39	4.69%	218.68%	2.40%	-24.53%
AP	67 Neutral	$58.27M	13.49	7.11%	―	-3.60%	―
HIHO	47 Neutral	$7.32M	65.98	1.64%	12.58%	17.26%	―
SGBX	44 Neutral	$6.21M	―	-310.72%	―	-61.64%	77.04%
TPCS	43 Neutral	$35.79M	―	-76.24%	―	8.71%	-164.66%