Holley: Shares Are Cheap, But Troubles Remain
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryHolley Inc. (HLLY) remains a 'hold' due to ongoing revenue declines despite improved adjusted profitability and cost controls.HLLY’s EBITDA is forecasted to rise to $120–$127 million in 2025, driven by $10 million in targeted cost savings and inventory optimization.Shares appear attractively valued on earnings but are not cheap enough versus peers on cash flow and EV/EBITDA metrics.Broader economic uncertainty and persistent top-line weakness temper optimism, despite management’s strategic initiatives and product innovation. SimonSkafar/E+ via Getty Images Looking back at my history when it comes to analyzing companies, I found myself surprised when checking out Holley Inc. (HLLY). This is a company that provides customers with aftermarket parts for cars and trucks. This is a massiveThis article was written byDaniel Jones36.04K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.