Holley (HLLY) AI Stock Analysis

• Market Cap: $503.73M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -3.20%
• EPS Growth: -257.73%
• Country: US
• Employees: 1,467
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.03
• Shares Outstanding: 120,509,895
• 10 Day Avg. Volume: 862,195
• 30 Day Avg. Volume: 1,587,948
• PEG Ratio: 0.07
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 8.92
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 7.89
• 1Y Price Target: $5.25
• Price Target Upside: 25.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.22
• Revenue Forecast (FY): $599.46M

• Rating: 64 Neutral
• Price Target: $4.50 ▲(7.66% Upside)

Holley's overall stock score is driven primarily by its strong earnings call performance, which highlights growth and strategic improvements. Technical analysis supports a positive outlook with bullish momentum. However, financial performance and valuation present challenges due to high leverage and negative net margins, impacting the overall score.

Positive Factors

Core Business Growth

Consistent growth in core business operations indicates strong market demand and effective strategic initiatives, supporting long-term revenue expansion.

Debt Reduction

Reducing leverage enhances financial flexibility and reduces interest expenses, positioning Holley for sustainable growth and improved financial health.

Gross Margin Improvement

Improved gross margins reflect strong pricing power and operational efficiencies, contributing to better profitability and competitive positioning.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Negative Net Profit Margin

Negative net profit margins indicate challenges in converting revenue into profit, which can hinder long-term financial stability and shareholder returns.

Inconsistent Revenue Growth

Inconsistent revenue growth can signal market challenges or operational inefficiencies, impacting long-term strategic planning and investor confidence.

Holley Business Overview & Revenue Model

Company Description

Holley Inc. designs, manufactures, and markets automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. The company's products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products, and exhaust products as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers wheels, chassis and suspension products, helmets, head and neck restraints, seat belts, firesuits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, APR, MSD, Flowmaster, Powerteq, Accel, and Simpson brands to retailers directly, as well as through distributors and online channel. The company was founded in 1903 and is headquartered in Bowling Green, Kentucky.

How the Company Makes Money

Holley generates revenue through multiple channels, primarily by selling a diverse range of automotive performance products directly to consumers and through retail partnerships. The company benefits from a strong brand reputation and a loyal customer base, which allows it to command premium pricing for its products. Key revenue streams include sales of carburetors, fuel management systems, and exhaust products, as well as related accessories and performance parts. Holley also engages in strategic partnerships with automotive retailers and online platforms, enhancing its distribution capabilities and market presence. Additionally, Holley capitalizes on revenue from sponsorships and events within the automotive racing community, further driving brand awareness and sales.

Holley Financial Statement Overview

Summary

Holley exhibits a mixed financial performance with strengths in gross profit margins and recent free cash flow growth. However, challenges persist with negative net profit margins, high leverage, and inconsistent revenue growth. The company needs to address its debt levels and improve operational efficiency to enhance profitability and financial stability.

Income Statement

Holley has shown a mixed performance in its income statement. The TTM data indicates a gross profit margin of 43.23%, which is a positive sign of profitability. However, the net profit margin is negative at -5.12%, indicating challenges in converting revenue into profit. Revenue growth has been inconsistent, with a significant drop in 2024. The EBIT and EBITDA margins have also declined over the years, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.27 in the TTM period, suggesting a leveraged position that could pose financial risk. The return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is relatively stable, but the high leverage remains a concern.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 36.94% in the TTM period, which is encouraging. However, the operating cash flow to net income ratio is low at 0.34, indicating potential issues in cash generation relative to net income. The free cash flow to net income ratio is healthier at 0.71, suggesting some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	598.13M	602.22M	659.70M	688.41M	692.85M	504.18M
Gross Profit	265.57M	246.74M	256.09M	253.66M	286.81M	208.24M
EBITDA	114.91M	106.70M	121.54M	148.95M	152.47M	104.42M
Net Income	-24.91M	-23.23M	19.18M	73.77M	-27.14M	32.86M
Balance Sheet
Total Assets	1.17B	1.13B	1.20B	1.25B	1.19B	1.07B
Cash, Cash Equivalents and Short-Term Investments	50.72M	56.09M	41.08M	26.15M	36.33M	71.67M
Total Debt	568.92M	557.91M	589.12M	680.67M	645.55M	674.99M
Total Liabilities	725.38M	712.17M	762.19M	833.65M	888.57M	824.95M
Stockholders Equity	439.74M	421.15M	441.15M	415.99M	304.49M	240.38M
Cash Flow
Free Cash Flow	15.15M	40.09M	82.16M	-1.28M	6.35M	78.93M
Operating Cash Flow	44.19M	46.90M	88.09M	12.31M	21.58M	88.41M
Investing Cash Flow	-21.66M	2.02M	-4.45M	-25.04M	-134.09M	-165.62M
Financing Cash Flow	-23.77M	-34.60M	-69.01M	2.85M	77.16M	140.54M

Holley Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLLY, the sentiment is Positive. The current price of 4.18 is below the 20-day moving average (MA) of 4.19, above the 50-day MA of 3.60, and above the 200-day MA of 2.83, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 40.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLLY.

Holley Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	80 Outperform	$335.87M	14.02	10.85%	―	6.83%	46.38%
GTX	71 Outperform	$3.38B	11.06	―	1.50%	-1.09%	56.16%
SMP	65 Neutral	$838.17M	12.40	10.49%	3.25%	23.96%	11.01%
HLLY	64 Neutral	$503.73M	-19.84	-5.54%	―	-3.20%	-257.73%
MLR	64 Neutral	$425.25M	14.32	7.39%	2.15%	-36.91%	-56.72%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	59 Neutral	$251.52M	109.91	0.94%	―	6.72%	―

Holley Corporate Events

Holley Amends CEO Employment Agreement for 2026

On December 10, 2025, Holley Inc. amended the employment agreement with its President and CEO, Matthew Stevenson. Effective January 1, 2026, Stevenson’s base salary will increase to $800,000, with potential for further increases. He will also be eligible for annual equity-based incentives valued at three-and-a-half times his salary, aligning his compensation with other executives and potentially enhancing company leadership stability.

Holley Announces $10M Debt Paydown for Growth

On October 27, 2025, Holley Performance Brands announced a $10 million paydown of its first lien term loan facility, marking a total debt reduction of $100 million since September 2023. This proactive financial strategy, funded entirely by free cash flow, is part of Holley’s ongoing transformation efforts over the past two years to strengthen its balance sheet, increase financial flexibility, and position the company for sustainable growth. The debt repayments are expected to result in up to $4 million in annualized net interest savings, reflecting Holley’s disciplined operations and strong cash flow generation, which reinforce investor confidence and shareholder value.

Holley Inc. Completes Secondary Stock Offering

On September 10, 2025, Holley Inc. entered into an underwriting agreement with Sentinel Capital Partners and several underwriters for a secondary offering of 14,000,000 shares of common stock at $2.75 per share, which closed on September 12, 2025. The company did not receive any proceeds from this offering, indicating a strategic move by the selling stockholder, Sentinel Capital Partners, rather than a direct capital raise for Holley Inc.