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Highway Holdings (HIHO)
:HIHO
US Market

Highway Holdings (HIHO) AI Stock Analysis

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Highway Holdings

(NASDAQ:HIHO)

Rating:47Neutral
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 (HIHO) vs. SPDR S&P 500 ETF (SPY)

Highway Holdings Business Overview & Revenue Model

Company DescriptionHighway 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 MoneyHighway 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
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue6.85M7.41M6.32M10.24M12.37M9.17M
Gross Profit1.99M2.47M1.71M3.14M3.77M2.71M
EBITDA-190.00K74.00K-11.00K664.00K1.66M384.00K
Net Income-523.00K106.00K-959.00K-293.00K443.00K-454.00K
Balance Sheet
Total Assets10.88M9.55M11.32M13.88M14.86M15.49M
Cash, Cash Equivalents and Short-Term Investments5.99M5.97M6.60M6.95M7.08M7.76M
Total Debt1.25M810.00K1.39M2.06M1.20M1.96M
Total Liabilities4.34M3.29M4.68M5.67M5.59M5.71M
Stockholders Equity6.55M6.27M6.64M8.20M9.27M9.76M
Cash Flow
Free Cash Flow0.00-461.00K297.00K717.00K-298.00K-192.00K
Operating Cash Flow0.00-360.00K415.00K809.00K-164.00K-104.00K
Investing Cash Flow0.00232.00K-102.00K991.00K-1.20M-78.00K
Financing Cash Flow0.00-492.00K-557.00K-920.00K-549.00K-902.00K

Highway Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.63
Price Trends
50DMA
1.74
Negative
100DMA
1.75
Negative
200DMA
1.82
Negative
Market Momentum
MACD
-0.03
Positive
RSI
40.30
Neutral
STOCH
21.38
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 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$111.46M9.3213.54%18.83%
72
Outperform
$416.26M12.819.13%8.06%38.46%
67
Neutral
£2.80B13.394.69%218.68%2.40%-24.53%
APAP
67
Neutral
$58.27M13.497.11%-3.60%
47
Neutral
$7.32M65.981.64%12.58%17.26%
44
Neutral
$6.21M-310.72%-61.64%77.04%
43
Neutral
$35.79M-76.24%8.71%-164.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HIHO
Highway Holdings
1.63
-0.39
-19.31%
AP
Ampco-Pittsburgh
2.92
1.69
137.40%
GIFI
Gulf Island Fabrication
7.00
0.71
11.29%
NWPX
Northwest Pipe Company
41.93
8.92
27.02%
SGBX
Sg Blocks
0.63
-1.62
-72.00%
TPCS
TechPrecision
3.66
0.23
6.71%
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 08, 2025