Hon Hai Precision Industry (HNHPF) AI Stock Analysis

• Market Cap: $78.28B
• Dividend Yield: 0.21%
• Average Volume (3M): 25.53K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.71
• Revenue Growth: 15.56%
• EPS Growth: 10.71%
• Country: US
• Employees: 826,608
• Sector: Technology
• Sector Strength: 93
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.20
• Shares Outstanding: 6,945,851,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 25,530
• PEG Ratio: -3.48
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 102.97
• 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: 24.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: $12.50 ▲(11.31%Upside)

Hon Hai Precision Industry demonstrates stability with strong financial performance and positive technical indicators. The main strengths include consistent revenue growth and a bullish technical setup. However, challenges in free cash flow management and a moderate valuation score slightly temper the overall positive outlook.

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 exhibits strong revenue growth and efficient operations, with healthy profit margins and a solid balance sheet. However, the cash flow statement reveals concerns, particularly with free cash flow generation, posing risks if not managed effectively.

Income Statement

The company's revenue has shown consistent growth over the years, with a TTM revenue growth rate of approximately 4.67% compared to the previous annual report. The gross profit margin for TTM is 6.21%, reflecting stable cost management. The net profit margin of 2.41% and EBIT margin of 2.93% are modest but indicate profitability. EBITDA margin is also healthy at 5.04%, showcasing efficient operations.

Balance Sheet

The debt-to-equity ratio stands at 0.67, indicating a moderate level of leverage. The return on equity (ROE) is 10.52%, demonstrating effective use of equity capital. The equity ratio is 35.79%, which suggests a solid capital structure. The company's balance sheet is robust, with a healthy mix of liabilities and equity.

Cash Flow

The operating cash flow to net income ratio is 0.60, indicating moderate cash generation relative to profits. The free cash flow to net income ratio is -0.28, reflecting challenges in generating free cash flow. The negative free cash flow growth rate suggests potential issues with capital expenditures or cash management.

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: 11.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 11.23 is above the 20-day moving average (MA) of 10.99, above the 50-day MA of 10.44, and above the 200-day MA of 10.67, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 93.53 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
TEL	78 Outperform	$53.07B	39.22	11.33%	1.48%	1.23%	-58.22%
SANM	77 Outperform	$5.42B	23.60	11.03%	―	-1.50%	1.84%
FLEX	77 Outperform	$19.83B	25.24	16.23%	―	-8.07%	-8.00%
HNHPF	76 Outperform	$78.28B	14.72	11.09%	0.21%	15.56%	10.71%
PLXS	74 Outperform	$3.65B	26.35	10.93%	―	-0.69%	42.26%
JBL	67 Neutral	$24.04B	43.54	32.41%	0.14%	-6.13%	-53.35%
Sector *	63 Neutral	$34.61B	5.36	-11.67%	1.95%	5.33%	-20.62%