Hilan (HLAN) AI Stock Analysis

• Market Cap: $5.90B
• Dividend Yield: 1.58%
• Average Volume (3M): 32.91K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.07
• Revenue Growth: 7.39%
• EPS Growth: 10.64%
• Country: IL
• Employees: 5,517
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 243.20
• Shares Outstanding: 22,947,678
• 10 Day Avg. Volume: 32,343
• 30 Day Avg. Volume: 32,906
• PEG Ratio: 1.18
• Price to Book (P/B): 4.35
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 13.54
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 9.61
• Enterprise Value/Ebitda: 13.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 28,614.00 ▲(4.55% Upside)

Hilan's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. Technical analysis presents a mixed picture with short-term bearish signals but long-term strength. The valuation is fair, with a reasonable P/E ratio and moderate dividend yield. Overall, Hilan is well-positioned in the Information Technology Services industry, despite some minor concerns.

Positive Factors

Revenue Growth

The 22.1% revenue growth indicates robust demand for Hilan's services, showcasing its strong market position and effective business model.

Cash Flow Generation

Strong cash flow growth highlights Hilan's ability to generate cash efficiently, supporting reinvestment in growth initiatives and financial stability.

Profitability

A solid net profit margin of 8.75% reflects effective cost management and operational efficiency, contributing to sustainable long-term profitability.

Negative Factors

Cost Pressures

Declining gross profit margins indicate rising cost pressures, which could impact profitability if not managed effectively over time.

Cash Flow Volatility

Volatility in cash flow growth could lead to uncertainty in financial planning and investment, affecting long-term strategic initiatives.

Rising Debt Levels

Increasing debt levels, though manageable, could strain financial flexibility and require careful monitoring to maintain balance sheet health.

Hilan Business Overview & Revenue Model

Company Description

Hilan (HLAN) is a leading provider of cloud-based software solutions and services, specializing in human resources management, payroll processing, and workforce management. The company serves a diverse range of sectors, including healthcare, education, and retail, offering an integrated suite of tools designed to streamline HR processes, enhance operational efficiency, and ensure regulatory compliance.

How the Company Makes Money

Hilan generates revenue primarily through subscription-based models for its software-as-a-service (SaaS) offerings. Clients pay recurring fees to access Hilan's platform, which includes comprehensive HR management, payroll processing, and workforce analytics tools. The company also earns revenue from professional services, such as consulting, implementation support, and customized solutions. Strategic partnerships with industry leaders and continuous innovation in product offerings further contribute to Hilan's financial performance.

Hilan Financial Statement Overview

Summary

Hilan demonstrates strong financial health with impressive revenue growth of 22.1% and solid profitability metrics, including a net profit margin of 8.75%. The balance sheet is stable with a manageable debt-to-equity ratio of 0.25 and a strong ROE of 22.92%. Cash flow is robust, with a free cash flow growth rate of 212%. Minor concerns include cost pressures and cash flow volatility.

Income Statement

Hilan demonstrates strong revenue growth with a TTM increase of 22.1%, indicating robust demand for its services. The company maintains healthy profitability with a gross profit margin of 22.99% and a net profit margin of 8.75%. EBIT and EBITDA margins are also solid at 12.08% and 16.09%, respectively. These metrics reflect effective cost management and operational efficiency. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 0.25, indicating prudent leverage. The return on equity (ROE) is strong at 22.92%, showcasing effective utilization of shareholder funds. The equity ratio stands at 45.17%, reflecting a solid capital structure. However, the slight increase in debt levels over the years warrants monitoring to ensure continued financial stability.

Cash Flow

Hilan's cash flow is robust, with a free cash flow growth rate of 212% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 1.61, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.89 suggests effective cash management. However, fluctuations in free cash flow growth in previous years suggest potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	2.84B	2.59B	2.23B	1.71B	1.63B
Gross Profit	683.45M	643.46M	575.54M	516.18M	405.01M	383.41M
EBITDA	481.06M	450.73M	396.53M	338.49M	270.45M	263.59M
Net Income	256.34M	246.52M	216.16M	173.51M	151.20M	130.42M
Balance Sheet
Total Assets	2.70B	3.11B	2.35B	2.03B	1.48B	1.42B
Cash, Cash Equivalents and Short-Term Investments	305.32M	343.00M	300.63M	186.98M	298.36M	222.67M
Total Debt	289.05M	302.14M	290.31M	253.53M	151.32M	225.12M
Total Liabilities	1.46B	1.95B	1.34B	1.19B	873.68M	910.75M
Stockholders Equity	1.22B	1.14B	995.64M	833.22M	595.79M	502.96M
Cash Flow
Free Cash Flow	379.66M	366.48M	297.67M	228.00M	256.73M	274.13M
Operating Cash Flow	411.59M	422.87M	355.51M	245.07M	268.34M	281.30M
Investing Cash Flow	-96.97M	-182.39M	-64.10M	-385.06M	-9.86M	-75.63M
Financing Cash Flow	-209.21M	-198.24M	-177.53M	21.86M	-182.35M	-111.97M

Hilan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27370.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:HLAN, the sentiment is Positive. The current price of 27370 is above the 20-day moving average (MA) of 25830.00, above the 50-day MA of 25928.00, and above the 200-day MA of 25076.95, indicating a bullish trend. The MACD of -66.50 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:HLAN.

Hilan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTRX	75 Outperform	8.51B	28.69	―	2.52%	8.82%	14.25%
HLAN	74 Outperform	$5.90B	23.03	22.56%	1.58%	7.39%	10.64%
ONE	73 Outperform	6.03B	22.65	―	2.92%	14.11%	25.79%
FORTY	73 Outperform	7.55B	26.39	―	3.08%	1.94%	-8.81%
MLTM	63 Neutral	2.87B	28.00	―	―	11.90%	13.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%