📊 HLLY-WT Key Takeaways
Is Holley Inc. (HLLY-WT) a Good Investment?
Holley is a stabilized manufacturing company with solid operational profitability (43% gross margin, 13% operating margin) and positive free cash flow, but faces headwinds from negligible revenue growth (1.9% YoY) and weak returns on capital (ROE 4.3%). Elevated leverage (1.15x debt/equity) and a recent net income rebound from a weak base raise questions about sustainability and growth prospects in what appears to be a mature automotive aftermarket segment.
Holley shows modest top-line growth but solid gross and operating margins with a sharp rebound in earnings, supported by adequate interest coverage and positive free cash flow. However, thin net margin, low ROE, inventory-dependent liquidity (quick ratio <1), and moderate leverage temper the outlook until growth and cash conversion improve.
Why Buy Holley Inc. Stock? HLLY-WT Key Strengths
- Strong gross margin of 43.4% demonstrates manufacturing efficiency and pricing power
- Positive free cash flow generation of $33.9M with healthy operating cash conversion
- Excellent short-term liquidity with 2.75x current ratio and manageable 7.5x interest coverage
- Dramatic 182.5% net income growth suggests operational turnaround from prior losses
- 43.4% gross margin supporting 13.4% operating margin
- Positive free cash flow (5.5% FCF margin) with modest capex
- Healthy current ratio (2.75x) and solid interest coverage (7.5x)
HLLY-WT Stock Risks: Holley Inc. Investment Risks
- Anemic revenue growth of 1.9% YoY indicates stagnation or market share loss in automotive aftermarket
- Excessive leverage at 1.15x debt/equity with $516M debt against only $37.2M cash reserves creates refinancing risk
- Very low returns on capital (ROE 4.3%, ROA 1.6%) suggest inefficient capital deployment despite operational improvements
- Net margin of 3.1% despite 43.4% gross margin signals high operating costs or structural profitability challenges
- Slow revenue growth (+1.9% YoY) limits operating leverage
- Thin 3.1% net margin and low 4.3% ROE reduce resilience
- Moderate leverage (1.15x D/E; $516M LT debt) and inventory-heavy working capital (quick 0.96x)
Key Metrics to Watch
- Top-line revenue growth rate - must exceed 2-3% to justify current leverage
- Debt reduction trajectory and debt/equity ratio improvement
- Net margin sustainability and underlying drivers of recent 182.5% earnings swing
- Free cash flow maintenance as indicator of business quality and deleveraging capacity
- Organic revenue growth
- Gross-to-operating margin spread and FCF conversion
Holley Inc. (HLLY-WT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.75x current ratio provides a solid financial cushion.
HLLY-WT Profit Margin, ROE & Profitability Analysis
HLLY-WT vs Automotive Sector: How Holley Inc. Compares
How Holley Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Holley Inc. Stock Overvalued? HLLY-WT Valuation Analysis 2026
Based on fundamental analysis, Holley Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Holley Inc. Balance Sheet: HLLY-WT Debt, Cash & Liquidity
HLLY-WT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Holley Inc.'s revenue has declined by 11% over the 5-year period, indicating business contraction. The most recent EPS of $-0.20 indicates the company is currently unprofitable.
HLLY-WT Revenue Growth, EPS Growth & YoY Performance
HLLY-WT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $134.0M | -$806.0K | $-0.01 |
| Q2 2025 | $166.7M | $2.8M | $0.09 |
| Q1 2025 | $153.0M | $2.8M | $0.02 |
| Q3 2024 | $134.0M | $752.0K | $0.01 |
| Q2 2024 | $169.5M | $3.7M | $0.11 |
| Q1 2024 | $158.6M | $3.7M | $0.03 |
| Q3 2023 | $154.8M | $752.0K | $0.01 |
| Q2 2023 | $175.3M | $4.2M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Holley Inc. Dividends, Buybacks & Capital Allocation
HLLY-WT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Holley Inc. (CIK: 0001822928)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HLLY-WT
What is the AI rating for HLLY-WT?
Holley Inc. (HLLY-WT) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HLLY-WT's key strengths?
Claude: Strong gross margin of 43.4% demonstrates manufacturing efficiency and pricing power. Positive free cash flow generation of $33.9M with healthy operating cash conversion. ChatGPT: 43.4% gross margin supporting 13.4% operating margin. Positive free cash flow (5.5% FCF margin) with modest capex.
What are the risks of investing in HLLY-WT?
Claude: Anemic revenue growth of 1.9% YoY indicates stagnation or market share loss in automotive aftermarket. Excessive leverage at 1.15x debt/equity with $516M debt against only $37.2M cash reserves creates refinancing risk. ChatGPT: Slow revenue growth (+1.9% YoY) limits operating leverage. Thin 3.1% net margin and low 4.3% ROE reduce resilience.
What is HLLY-WT's revenue and growth?
Holley Inc. reported revenue of $613.5M.
Does HLLY-WT pay dividends?
Holley Inc. does not currently pay dividends.
Where can I find HLLY-WT SEC filings?
Official SEC filings for Holley Inc. (CIK: 0001822928) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HLLY-WT's EPS?
Holley Inc. has a diluted EPS of $0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HLLY-WT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Holley Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HLLY-WT stock overvalued or undervalued?
Valuation metrics for HLLY-WT: ROE of 4.3% (sector avg: 12%), net margin of 3.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy HLLY-WT stock in 2026?
Our dual AI analysis gives Holley Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HLLY-WT's free cash flow?
Holley Inc.'s operating cash flow is $46.2M, with capital expenditures of $12.3M. FCF margin is 5.5%.
How does HLLY-WT compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 3.1% (avg: 6%), ROE 4.3% (avg: 12%), current ratio 2.75 (avg: 1.2).