Hon Hai Precision Industry (HNHPF) AI Stock Analysis

• Market Cap: $78.75B
• Dividend Yield: 2.05%
• Average Volume (3M): 2.34K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.74
• Revenue Growth: 15.56%
• EPS Growth: 10.71%
• Country: US
• Employees: 826,608
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.20
• Shares Outstanding: 6,945,851,000
• 10 Day Avg. Volume: 3,960
• 30 Day Avg. Volume: 2,342
• PEG Ratio: -0.46
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.00
• Price Target Upside: 22.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $11.50 ▲(0.79%Upside)

The stock's overall score reflects strong financial performance driven by revenue growth and operational efficiency, but highlights a need for better cash flow management. Technically, the stock has positive trend momentum, though it faces potential overbought conditions. Valuation metrics are fair, offering moderate investor returns.

Hon Hai Precision Industry Business Overview & Revenue Model

Company Description

Hon Hai Precision Industry Co., Ltd. provides technology solutions in Japan, Ireland, the United States, Singapore, China, Taiwan, and internationally. The company manufactures, sells, and services connectors, cases, thermal modules, wired/wireless communication products, optical products, power supply modules, and assemblies for use in the information technology, communications, automotive equipment, precision molding, automobile, and consumer electronics industries. It also manufactures and sells computer terminal monitors and related components, as well as data storage and processing equipment; offers solutions for autonomous driving systems, new energy power, and IoV systems; and provides services of planning, advisory, and business operation and management, logistics, export processing, construction, leasing, and information/software services. In addition, the company manufactures and sells application modules and network cables assemblies; develops educational technology; holds patent applications; manufactures and trades in portable cameras; and retails office machinery and equipment, and electronic appliances. Further, it is involved in the reinvestment in the businesses relating to robots, automatic equipment, molds, parts, and accessories and corresponding services; and software development, repair and after-sale, and rental services of robots. Additionally, the company manufactures and sells computer and data processing equipment, WIFI cards and modules, CFTVs, DVRs, Bluetooth modules, set-top boxes, and optical network terminals. It is also involved in the provision of data storage services; manufacturing of wire or wireless communication; installation of computer and satellite TV channels; and provision of mobile phone services, as well as telecom-related business. The company was founded in 1974 and is headquartered in New Taipei City, Taiwan.

How the Company Makes Money

Hon Hai Precision Industry makes money through its extensive electronics manufacturing services. The company's primary revenue stream comes from its contract manufacturing agreements with major global technology firms, including Apple, Sony, and Microsoft, among others. Foxconn manufactures and assembles a wide array of products such as smartphones, tablets, laptops, and gaming consoles under these agreements. Additionally, the company earns revenue through its investments in various technology sectors and its diversification into areas like semiconductor manufacturing and electric vehicle production. Key partnerships with technology giants and its ability to produce high-quality products at competitive costs are significant factors contributing to its earnings.

Hon Hai Precision Industry Financial Statement Overview

Summary

Hon Hai Precision Industry shows strong revenue growth and stable operational efficiency, with improved profit margins. The balance sheet is solid but profitability on equity could be enhanced. Cash flow management needs improvement due to declining operating and free cash flows.

Income Statement

The company exhibits strong revenue growth with a notable increase of 11.32% from 2023 to 2024. Despite the absence of EBIT in 2024, the EBITDA margin remains healthy at 4.91%. Gross profit margins have slightly improved to 6.25%, indicating stable operational efficiency. Net profit margin also shows improvement at 2.23%, reflecting better bottom-line performance.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.58, indicating moderate leverage. The equity ratio stands at 37.44%, showcasing a solid equity base. However, the return on equity is modest at 9.28%, suggesting room for improved profitability on equity.

Cash Flow

The cash flow statement highlights a significant decline in operating cash flow. Despite this, free cash flow remains positive, although it experienced a contraction of 93.27% from the previous year. The free cash flow to net income ratio is 0.14, indicating limited free cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.86T	6.16T	6.63T	5.99T	5.36T
Gross Profit	428.95B	387.95B	400.09B	362.13B	302.92B
EBITDA	336.55B	342.17B	292.08B	291.01B	250.90B
Net Income	152.71B	142.10B	141.48B	139.32B	101.79B
Balance Sheet
Total Assets	4.39T	3.94T	4.13T	3.91T	3.67T
Cash, Cash Equivalents and Short-Term Investments	1.32T	1.35T	1.08T	1.11T	1.28T
Total Debt	961.56B	943.07B	974.01B	871.55B	748.26B
Total Liabilities	2.54T	2.25T	2.48T	2.34T	2.20T
Stockholders Equity	1.65T	1.49T	1.45T	1.38T	1.30T
Cash Flow
Free Cash Flow	21.99B	326.60B	8.05B	-192.71B	310.09B
Operating Cash Flow	166.03B	445.55B	109.71B	-98.21B	377.62B
Investing Cash Flow	-300.05B	-137.87B	-45.44B	-92.08B	34.59B
Financing Cash Flow	-164.07B	-160.64B	-87.87B	24.28B	-25.12B

Hon Hai Precision Industry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNHPF, the sentiment is Positive. The current price of 11.41 is above the 20-day moving average (MA) of 10.56, above the 50-day MA of 9.94, and above the 200-day MA of 10.94, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 75.59 is Negative, neither overbought nor oversold. The STOCH value of 99.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNHPF.

Hon Hai Precision Industry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$5.24B	22.69	11.03%	―	-1.50%	1.84%
TEL	78 Outperform	$49.48B	36.57	11.33%	1.70%	1.23%	-58.22%
HNHPF	75 Outperform	$78.75B	14.88	11.09%	2.05%	15.56%	10.71%
PLXS	74 Outperform	$3.67B	26.35	10.93%	―	-0.69%	42.26%
FLEX	69 Neutral	$18.64B	23.63	16.23%	―	-8.07%	-8.00%
JBL	67 Neutral	$23.33B	42.27	32.41%	0.15%	-6.13%	-53.35%
Sector *	65 Neutral	S$573.67M	14.19	-0.76%	6.80%	4.69%	-50.69%