Hongli Group Inc. Ordinary Shares (HLP)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor first, and Hongli Group does not offer much that Graham or Buffett would call a bargain. The company makes customized cold roll formed steel profiles for mining and excavation, construction, agriculture, and transportation. That is a real business, but steel profiles are generally commodity-like; the customization may help, yet the figures give no sign of a durable moat. At the 2026-10-13 close of $2.82, FairStock calculates a P/E of 94 and P/B of 3.57. Those are demanding multiples for a business with a 3.49% ROE and 2.22% ROCE. The Graham Number is $0.73, so the price is far above a conservative asset-and-earnings benchmark; the margin of safety is -286.30%. The Piotroski F-Score is only 1/9, which suggests weak fundamental momentum. On the positive side, debt is modest with D/E of 0.20, and the Altman Z-Score of 3.20 indicates the balance sheet is not obviously distressed. The beta of -0.04 is unusual but not a substitute for business quality. Revenue and profit growth are listed as N/A, and FairStock's Lynch category is none because there are only 0 years of filed results, versus the 3 needed. The 52-week range of $0.34 to $2.85 shows the market has repriced this stock violently, and at $2.82 it is near the high. The FairStock Score of 41/100 reinforces a mixed-to-weak picture. I would want to see several years of filed sales, earnings, and returns before treating this as a predictable compounder. Without that, the price looks speculative relative to the numbers provided.

In plain English: Hongli makes custom steel profiles for mining, construction, farming and transport, mostly in China and abroad. The business looks weak on profit and returns on invested money, though it uses little debt. At $2.82 on 2026-10-13, the price looks expensive against the company's earnings and underlying value, and it sits near its 52-week high.

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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