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Highway Holdings (HIHO)
NASDAQ:HIHO
US Market

Highway Holdings (HIHO) AI Stock Analysis

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HI

Highway Holdings

(NASDAQ:HIHO)

44Neutral
Highway Holdings is facing significant financial and operational challenges, reflected in declining revenues and profitability. The technical indicators also suggest a bearish trend, with the stock trading below key moving averages and negative momentum signals. Although valuation is complicated due to negative earnings, the high dividend yield offers some attraction for income-seeking investors. Overall, the stock scores low due to these financial and technical challenges.

Highway Holdings (HIHO) vs. S&P 500 (SPY)

Highway Holdings Business Overview & Revenue Model

Company DescriptionHighway Holdings Limited (HIHO) is a manufacturing company that operates primarily in the electronic and electrical sectors. The company is engaged in the production and assembly of a wide range of products, including components and subassemblies for original equipment manufacturers (OEMs) based primarily in Europe, the United States, and Asia. Highway Holdings provides a comprehensive suite of manufacturing services, which include plastic injection molding, metal stamping, electronic assembly, and tooling.
How the Company Makes MoneyHighway Holdings makes money by providing manufacturing services to a diverse clientele of original equipment manufacturers. The company's revenue model is primarily based on contracts and agreements with these OEMs, where it offers manufacturing and assembly services for their products. Highway Holdings generates revenue through the production of various components and subassemblies, offering value-added services such as design assistance, prototyping, and logistics support. The company benefits from long-term relationships with its clients, which help ensure a steady stream of manufacturing orders. Additionally, Highway Holdings may engage in partnerships with other firms to expand its capabilities and market reach, although specific partnership details are not disclosed.

Highway Holdings Financial Statement Overview

Summary
Highway Holdings is struggling financially with declining revenues, negative profitability, and reduced cash flows. Despite a stable balance sheet with manageable debt, the company must address operational inefficiencies to improve its financial health.
Income Statement
32
Negative
Highway Holdings has experienced a significant decline in revenue and profitability over recent years, with a negative revenue growth rate and shrinking profit margins. The gross profit margin has decreased, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies and challenges in cost management.
Balance Sheet
54
Neutral
The company maintains a moderate level of debt with a manageable debt-to-equity ratio. However, the return on equity is negative due to consistent net losses, which indicates inefficient use of equity. The equity ratio is decent, which suggests a reasonable level of shareholder financing relative to total assets.
Cash Flow
45
Neutral
Operating cash flow is positive but has decreased significantly, reflecting challenges in converting operations into cash. Free cash flow has also decreased, showing increased strain on liquidity. The operating cash flow to net income ratio suggests some improvement in cash generation despite net losses.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
6.85M6.32M10.24M12.37M9.17M12.56M
Gross Profit
1.99M1.71M3.14M3.77M2.71M4.15M
EBIT
-1.23M-769.00K-516.00K-520.00K-565.00K-495.00K
EBITDA
-190.00K-11.00K664.00K1.66M384.00K1.97M
Net Income Common Stockholders
-523.00K-959.00K-293.00K443.00K-454.00K686.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.27M6.60M6.95M7.08M7.76M8.83M
Total Assets
18.13M11.32M13.88M14.86M15.49M18.17M
Total Debt
0.001.39M2.06M1.20M1.96M2.82M
Net Debt
-11.27M-5.21M-4.90M-4.81M-5.79M-6.01M
Total Liabilities
6.34M4.68M5.67M5.59M5.71M7.25M
Stockholders Equity
11.74M6.64M8.20M9.27M9.76M10.91M
Cash FlowFree Cash Flow
0.00297.00K717.00K-298.00K-192.00K351.00K
Operating Cash Flow
0.00415.00K809.00K-164.00K-104.00K442.00K
Investing Cash Flow
0.00-102.00K991.00K-1.20M-78.00K-64.00K
Financing Cash Flow
0.00-557.00K-920.00K-549.00K-902.00K-297.00K

Highway Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.57
Price Trends
50DMA
1.77
Negative
100DMA
1.84
Negative
200DMA
1.85
Negative
Market Momentum
MACD
-0.09
Positive
RSI
39.81
Neutral
STOCH
60.31
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 1.57 is below the 20-day moving average (MA) of 1.65, below the 50-day MA of 1.77, and below the 200-day MA of 1.85, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.81 is Neutral, neither overbought nor oversold. The STOCH value of 60.31 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$400.29M11.849.58%10.81%63.68%
68
Neutral
$112.51M7.8017.13%5.38%
62
Neutral
$4.16B11.315.46%215.65%4.12%-8.47%
APAP
50
Neutral
$35.77M86.410.73%-0.96%
44
Neutral
$6.78M-10.62%7.64%11.36%22.93%
43
Neutral
$23.47M-76.24%8.71%-164.66%
25
Underperform
$2.50M308.54%-69.32%63.86%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HIHO
Highway Holdings
1.54
-0.51
-24.88%
AP
Ampco-Pittsburgh
1.88
-0.27
-12.56%
GIFI
Gulf Island Fabrication
6.87
-0.03
-0.43%
NWPX
Northwest Pipe Company
41.12
9.07
28.30%
SGBX
Sg Blocks
0.37
-2.58
-87.46%
TPCS
TechPrecision
2.31
-2.87
-55.41%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.