Hyliion Holdings Corp. (NYSE: HYLN)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001759631
Market Cap 323.72 Mn
P/B 1.59
P/E -5.54
P/S 75.78
ROIC (Qtr) -31.52
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 5.00 Mn
Debt/Equity (Qtr) 0.02

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 17.88M provide 6.76x coverage of short-term debt 2.64M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 216.23M provides 43.27x coverage of total debt 5M, indicating robust asset backing and low credit risk.
  • Short-term investments of 87.12M provide solid 16.48x coverage of other current liabilities 5.29M, indicating strong liquidity.
  • Long-term investments of 59.74M provide solid 25.39x coverage of long-term debt 2.35M, indicating strategic financial planning.
  • Tangible assets of 216.23M provide robust 40.90x coverage of other current liabilities 5.29M, indicating strong asset backing.

Bear case

  • Operating cash flow of (48.14M) barely covers its investment activities of 38.56M, with a coverage ratio of -1.25, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 38.56M provide weak support for R&D spending of 43.77M, which is 0.88x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 87.12M significantly exceed cash reserves of 17.88M, which is 4.87x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (48.14M) shows concerning coverage of stock compensation expenses of 5.13M, with a -9.38 ratio indicating potential earnings quality issues.
  • Free cash flow of (73.65M) provides weak coverage of capital expenditures of 25.51M, with a -2.89 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.45 1.16
EV to Cash from Ops. EV/CFO -6.52 9.30
EV to Debt EV to Debt 62.79 34.64
EV to EBIT EV/EBIT -5.37 4.45
EV to EBITDA EV/EBITDA -5.15 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF -4.26 17.25
EV to Market Cap EV to Market Cap 0.97 1.58
EV to Revenue EV/Rev 73.44 3.42
Price to Book Value [P/B] P/B 1.59 -0.33
Price to Earnings [P/E] P/E -5.54 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) 0.00 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -260.15 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -36.30 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.54 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.95 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.54 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) 12.54 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) 5.41 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 1.68 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 563.41 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 1.79 0.69
Current Ratio Curr Ratio (Qtr) 11.02 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.22
Interest Cover Ratio Int Coverage (Qtr) 0.00 -110.44
Times Interest Earned Times Interest Earned (Qtr) 0.00 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,205.80 -952.44
EBIT Margin % EBIT Margin % (Qtr) -1,367.11 -997.37
EBT Margin % EBT Margin % (Qtr) -1,367.11 -987.56
Gross Margin % Gross Margin % (Qtr) 4.40 -122.43
Net Profit Margin % Net Margin % (Qtr) -1,367.10 -979.78