Highway Holdings Limited Common Stock (HIHO)
FairStock Score: 40/100 — MIXED
Key Financials
| Current Price | $0.72 |
| Market Cap | $4M |
| P/E Ratio | -2.25 |
| ROE | -25.32% |
| Dividend Yield | 22.22% |
| Sector | Industrials |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At $0.83 on 2026-10-13, Highway Holdings carries a $4.0M market cap. That is cigar-butt territory. The business makes metal, plastic, electric and electronic components—a tough, competitive OEM trade with little pricing power. In the latest quarter (fiscal Q2 2026), revenue was $2.0M and net income was $109,000, a 5.45% margin. That small profit is better than the trailing picture: the FairStock-calculated P/E is -2.59, ROE is -25.32%, and ROCE is -12.67%. Revenue and profit growth have collapsed—the provided figures show -44.26% and -261.47%, respectively—so the latest quarter may be a blip, not a turn. The balance sheet is not obviously overleveraged with D/E 0.46, but Altman Z 0.23 (FairStock calc) signals serious distress risk. Piotroski F-score 7/9 is a rare positive, suggesting some accounting/fundamental improvement. Valuation: P/B 0.77 means the stock trades below book, and dividend yield 22.22% looks enticing, but with negative earnings that payout may not be durable. Beta 0.52 and 52W range $0.60-$2.21 show a small, illiquid issue. Graham would demand a margin of safety; Buffett would ask about durable competitive advantage. I see neither here. The price may be statistically cheap, but the business quality and trajectory are poor. I would wait for evidence of sustainable positive earnings and cash flow before calling it a value.
In plain English: The company makes metal, plastic, electric and electronic parts for other manufacturers. It is very small and has lost money overall, though it earned a small profit in the latest quarter. The stock trades below the value of its net assets, but the weak business makes that discount look risky rather than clearly cheap.
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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer