Highway Holdings (HIHO) AI Stock Analysis

• Market Cap: $7.80M
• Dividend Yield: 7.08%
• Average Volume (3M): 136.49K
• Price to Earnings (P/E): 109.4
• Beta (1Y): 0.20
• Revenue Growth: 3.31%
• EPS Growth: N/A
• Country: US
• Employees: 374
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.01
• Shares Outstanding: 4,601,825
• 10 Day Avg. Volume: 384,291
• 30 Day Avg. Volume: 136,486
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.48
• Enterprise Value/Ebitda: -15.57
• 1Y Price Target: $1.50
• Price Target Upside: -11.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: $1.50 ▼(-11.76% Downside)

Highway Holdings' overall stock score is primarily impacted by its financial performance challenges, particularly in revenue decline and cash flow management. The technical analysis suggests a neutral position with potential for upward movement. However, the high P/E ratio indicates overvaluation, partially offset by a strong dividend yield.

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 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

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

Highway Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 1.7 is above the 20-day moving average (MA) of 1.70, above the 50-day MA of 1.66, and below the 200-day MA of 1.76, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 27.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HIHO.

Highway Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWPX	72 Outperform	509.05M	15.88	8.80%	―	5.83%	33.50%
GIFI	72 Outperform	110.80M	11.72	10.64%	―	14.32%	0.00%
HIHO	54 Neutral	$7.80M	109.35	1.07%	7.08%	3.31%	―
TPCS	49 Neutral	54.04M	-27.73	-22.95%	―	3.78%	78.39%
AP	39 Underperform	49.98M	-9.80	-8.06%	―	-3.95%	88.17%
SGBX	38 Underperform	4.74M	-0.03	-74.36%	―	-50.14%	81.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%