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HIHOHighway Holdings Limited
$0.81$4M
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  4. Financial Ratios

Highway Holdings Limited (HIHO) Financial Ratios

Latest Ratios: P/E Ratio 33.8x · EV/EBITDA -19.1x · ROE 1.6%. (1997–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

HIHO Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$4M$8M$9M$8M$12M$15M$8M$13M$19M$15M$17M
Enterprise Value$-1416119$3M$4M$3M$7M$9M$2M$4M$7M$5M$8M
P/E Ratio →33.7876.76——25.64—11.28—11.9527.8613.79
P/S Ratio0.511.101.450.810.961.630.630.880.970.760.75
P/B Ratio0.571.301.381.011.271.530.731.251.581.311.45
P/FCF——30.9211.58——22.61—8.807.3223.63
P/OCF——22.1310.26——17.96—7.806.6713.77

P/E links to full P/E history page with 30-year chart

HIHO EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.400.630.330.571.000.150.270.380.240.36
EV / EBITDA-19.1440.29—5.134.2123.830.98—3.264.674.45
EV / EBIT—20.28——12.32—2.15—3.556.315.41
EV / FCF——13.384.75——5.49—3.482.3711.15

HIHO Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin33.3%33.3%27.0%30.7%30.5%29.5%33.1%25.1%35.2%28.4%25.8%
Operating Margin-7.2%-7.2%-12.2%-4.7%4.6%-6.7%5.9%-5.3%10.1%3.9%6.6%
Net Profit Margin1.4%1.4%-15.2%-2.9%3.6%-5.0%5.5%-4.4%8.1%2.7%5.5%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE1.6%1.6%-12.9%-3.4%4.7%-4.5%6.5%-5.7%13.4%4.5%10.4%
ROA1.0%1.0%-7.6%-2.0%2.9%-2.7%4.1%-3.8%8.7%3.0%7.4%
ROIC-31.7%-31.7%-24.3%-9.2%10.1%-10.4%18.0%-61.8%161.1%28.0%42.9%
ROCE-7.7%-7.7%-8.9%-4.9%5.3%-5.0%6.4%-6.9%16.7%6.5%12.5%

HIHO Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.130.130.210.250.130.200.26————
Debt / EBITDA10.9510.95—3.090.725.111.43————
Net Debt / Equity—-0.82-0.78-0.60-0.52-0.59-0.55-0.87-0.96-0.89-0.77
Net Debt / EBITDA-69.76-69.76—-7.38-2.89-15.09-3.06—-4.99-9.76-4.99
Debt / FCF——-17.54-6.83——-17.13—-5.32-4.95-12.49
Interest Coverage———————————

Net cash position: cash ($6M) exceeds total debt ($810000)

HIHO Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.792.792.512.622.382.902.652.632.722.643.10
Quick Ratio2.412.412.112.281.922.332.252.322.262.282.82
Cash Ratio2.012.011.721.731.421.961.791.811.851.611.80
Asset Turnover—0.780.560.740.830.590.690.941.061.121.35
Inventory Turnover4.314.312.955.033.662.894.206.954.246.2011.93
Days Sales Outstanding—50.3372.3567.2166.7138.7458.3657.8842.3463.3668.77

HIHO Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield13.7%6.0%6.7%12.3%4.8%6.6%3.7%9.9%5.5%7.6%7.9%
Payout Ratio464.2%464.2%——128.4%—43.3%—66.5%213.7%109.0%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.0%1.3%——3.9%—8.9%—8.4%3.6%7.3%
FCF Yield——3.2%8.6%——4.4%—11.4%13.7%4.2%
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.1%0.0%
Total Shareholder Yield13.7%6.0%6.7%12.3%4.8%6.6%3.7%9.9%5.5%7.7%7.9%
Shares Outstanding—$4M$4M$4M$4M$4M$4M$4M$4M$4M$4M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetFortress
Cash FlowBurning
Top Statement Risk

Operating scale insufficiency

Asset-Heavy Valuation Masks Operational Decay

According to recent financial data, HIHO trades at a P/S of 0.54 and a P/B of 0.61, suggesting that the market is pricing the company primarily as a liquidating asset play rather than a viable, growing industrial manufacturing entity with future earnings potential.

The current valuation multiples appear to discount the core manufacturing business entirely, reflecting investor skepticism regarding the company's ability to return to profitability. Given the negative EV/EBITDA of -15.34, traditional valuation metrics are largely distorted, indicating that the market is essentially valuing the company's cash pile while assigning negligible worth to its operational infrastructure.

Operating Losses Undermine Gross Margins

As reported in quarterly filings, HIHO maintains a gross margin of 25.5% to 34.7%, yet the operating margin has plummeted to -45.9% in 2026Q2, indicating that the company's fixed cost structure is far too heavy for its current, shrinking revenue base.

While the gross margin suggests the company retains some technical pricing power in its niche, the inability to convert this into operating profit warrants significant concern. Investors should monitor whether management can rationalize the SG&A burden, as the current trajectory suggests that the business is structurally under-scaled for its corporate overhead.

Capital Efficiency Deteriorating Over Time

Based on historical performance data, HIHO's ROIC has trended into negative territory, reaching -38.5% in 2026Q2, which highlights a severe decay in the company's ability to generate meaningful returns on its invested capital compared to its historical performance.

The consistent decline in ROIC suggests that the company is failing to compound value, likely due to the combination of shrinking revenue and aging manufacturing assets. This trend implies that capital allocation has become increasingly inefficient, as the business struggles to find profitable growth opportunities within its specialized metal fabrication niche.

Working Capital Cycles Remain Stagnant

As indicated by the reported financial statements, the cash conversion cycle has remained elevated, peaking at 178 days in 2024Q1 and settling at 122 days in 2026Q2, reflecting persistent inefficiencies in managing inventory and collecting receivables from its OEM customer base.

The high days of inventory outstanding, which reached 119 days in 2025Q3, suggests that the company may be holding excessive raw materials or finished goods that are not moving through the production cycle efficiently. This lack of working capital velocity further exacerbates the company's liquidity challenges and limits its ability to respond to shifts in industrial demand.

Misapplied P/E Ratio Obscures Reality

The P/E ratio is the most commonly misapplied metric for HIHO, as it obscures the company's reliance on non-operating income and interest gains to mask persistent operating losses, leading to a potentially misleading perception of the company's core manufacturing health.

Investors should instead focus on the operating margin and cash flow generation, as the P/E ratio fails to account for the fact that the company's net income is often subsidized by its cash reserves. Relying on P/E in this context ignores the fundamental reality that the underlying business is currently failing to generate sustainable earnings from its primary industrial operations.

Download Financial Ratios Data

Includes 30+ ratios · 28 years · Updated daily

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HIHO — Frequently Asked Questions

Quick answers to the most common questions about buying HIHO stock.

What is Highway Holdings Limited's P/E ratio?

Highway Holdings Limited's current P/E ratio is 33.8x. The historical average is 19.4x. This places it at the 89th percentile of its historical range.

What is Highway Holdings Limited's EV/EBITDA?

Highway Holdings Limited's current EV/EBITDA is -19.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.

What is Highway Holdings Limited's ROE?

Highway Holdings Limited's return on equity (ROE) is 1.6%. The historical average is 3.1%.

Is HIHO stock overvalued?

Based on historical data, Highway Holdings Limited is trading at a P/E of 33.8x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Highway Holdings Limited's dividend yield?

Highway Holdings Limited's current dividend yield is 13.73% with a payout ratio of 464.2%.

What are Highway Holdings Limited's profit margins?

Highway Holdings Limited has 33.3% gross margin and -7.2% operating margin.

How much debt does Highway Holdings Limited have?

Highway Holdings Limited's Debt/EBITDA ratio is 10.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.