Latest news with #MaxHillman
Yahoo
22-05-2025
- Business
- Yahoo
1 Industrials Stock with Solid Fundamentals and 2 to Turn Down
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy, and investors seem to be forecasting a downturn - over the past six months, the industry has pulled back by 11.4%. This performance was worse than the S&P 500's 2.1% loss. Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Taking that into account, here is one industrials stock poised to generate sustainable market-beating returns and two we're steering clear of. Market Cap: $9.54 billion Credited with the invention of the glass-lined water heater, A.O. Smith (NYSE:AOS) manufactures water heating and treatment products for various industries. Why Are We Wary of AOS? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 2.8% Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.5 percentage points At $67.12 per share, A. O. Smith trades at 17.4x forward P/E. Dive into our free research report to see why there are better opportunities than AOS. Market Cap: $1.47 billion Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors. Why Does HLMN Give Us Pause? Sales stagnated over the last two years and signal the need for new growth strategies Poor expense management has led to an operating margin of 3.7% that is below the industry average Underwhelming 4% return on capital reflects management's difficulties in finding profitable growth opportunities Hillman's stock price of $7.51 implies a valuation ratio of 13.1x forward P/E. Read our free research report to see why you should think twice about including HLMN in your portfolio, it's free. Market Cap: $50.63 billion Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE:WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services. Why Is WCN Interesting? Annual revenue growth of 10.5% over the past five years was outstanding, reflecting market share gains this cycle Operating margin expanded by 4.1 percentage points over the last five years as it scaled and became more efficient Robust free cash flow margin of 15.2% gives it many options for capital deployment Waste Connections is trading at $195.93 per share, or 36.2x forward P/E. Is now a good time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
Yahoo
29-04-2025
- Business
- Yahoo
Hillman (NASDAQ:HLMN) Misses Q1 Revenue Estimates
Hardware products and merchandising solutions provider Hillman (NASDAQ:HLMN) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 2.6% year on year to $359.3 million. On the other hand, the company's full-year revenue guidance of $1.54 billion at the midpoint came in 0.5% above analysts' estimates. Its non-GAAP profit of $0.10 per share was in line with analysts' consensus estimates. Is now the time to buy Hillman? Find out in our full research report. Revenue: $359.3 million vs analyst estimates of $361.3 million (2.6% year-on-year growth, 0.5% miss) Adjusted EPS: $0.10 vs analyst estimates of $0.10 (in line) Adjusted EBITDA: $54.53 million vs analyst estimates of $54.15 million (15.2% margin, 0.7% beat) The company reconfirmed its revenue guidance for the full year of $1.54 billion at the midpoint EBITDA guidance for the full year is $265 million at the midpoint, above analyst estimates of $261.9 million Operating Margin: 4.2%, in line with the same quarter last year Free Cash Flow was -$21.31 million compared to -$6.08 million in the same quarter last year Market Capitalization: $1.50 billion "We got off to a good start during 2025, posting both top and bottom line growth which was driven by contributions from Intex DIY, which we acquired in August of 2024, and new business wins," commented Jon Michael Adinolfi, President and CEO of Hillman. Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Hillman's sales grew at a sluggish 3.9% compounded annual growth rate over the last five years. This fell short of our benchmark for the industrials sector and is a tough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Hillman's recent performance shows its demand has slowed as its revenue was flat over the last two years. This quarter, Hillman's revenue grew by 2.6% year on year to $359.3 million, falling short of Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 4.9% over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below average for the sector. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Hillman was profitable over the last five years but held back by its large cost base. Its average operating margin of 3.7% was weak for an industrials business. This result is surprising given its high gross margin as a starting point. On the plus side, Hillman's operating margin rose by 1.5 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Hillman generated an operating profit margin of 4.2%, in line with the same quarter last year. This indicates the company's cost structure has recently been stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Hillman's full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it's at a critical moment in its life. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. Hillman's EPS grew at a spectacular 15.5% compounded annual growth rate over the last two years, higher than its flat revenue. This tells us management responded to softer demand by adapting its cost structure. We can take a deeper look into Hillman's earnings to better understand the drivers of its performance. While we mentioned earlier that Hillman's operating margin was flat this quarter, a two-year view shows its margin has expanded by 3.9 percentage points. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, Hillman reported EPS at $0.10, in line with the same quarter last year. This print beat analysts' estimates by 3.2%. Over the next 12 months, Wall Street expects Hillman's full-year EPS of $0.52 to grow 8.7%. It was good to see Hillman provide full-year revenue and EBITDA guidance that slightly beat analysts' expectations. We were also glad its EBITDA slightly exceeded Wall Street's estimates, though its revenue slightly missed. Still, this quarter had some key positives. The stock remained flat at $7.56 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
24-04-2025
- Business
- Yahoo
1 Value Stock to Research Further and 2 to Ignore
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they're out of favor. The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it's rotten. Separating the winners from the value traps is a tough challenge, and that's where StockStory comes in. Our job is to find you high-quality companies that will stand the test of time. That said, here is one value stock trading at a big discount to its intrinsic value and two with little support. Forward P/E Ratio: 13.9x Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure. Why Does NXPI Worry Us? Customers postponed purchases of its products and services this cycle as its revenue declined by 2.3% annually over the last two years Forecasted revenue decline of 5.3% for the upcoming 12 months implies demand will fall even further 8 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $187.58 per share, NXP Semiconductors trades at 13.9x forward price-to-earnings. Read our free research report to see why you should think twice about including NXPI in your portfolio, it's free. Forward P/E Ratio: 13.8x Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors. Why Are We Cautious About HLMN? Flat sales over the last two years suggest it must find different ways to grow during this cycle Subpar operating margin of 3.7% constrains its ability to invest in process improvements or effectively respond to new competitive threats Below-average returns on capital indicate management struggled to find compelling investment opportunities Hillman's stock price of $7.21 implies a valuation ratio of 13.8x forward price-to-earnings. If you're considering HLMN for your portfolio, see our FREE research report to learn more. Forward P/E Ratio: 13.3x Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases. Why Are We Positive On AMGN? 12.7% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers Robust free cash flow margin of 32.2% gives it many options for capital deployment Stellar returns on capital showcase management's ability to surface highly profitable business ventures Amgen is trading at $277.27 per share, or 13.3x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
Q4 Earnings Outperformers: Hillman (NASDAQ:HLMN) And The Rest Of The Professional Tools and Equipment Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how professional tools and equipment stocks fared in Q4, starting with Hillman (NASDAQ:HLMN). Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies' offerings. The 10 professional tools and equipment stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 0.6% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.7% since the latest earnings results. Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors. Hillman reported revenues of $349.6 million, flat year on year. This print fell short of analysts' expectations by 0.6%. Overall, it was a mixed quarter for the company with an impressive beat of analysts' adjusted operating income estimates but a significant miss of analysts' EPS estimates. Doug Cahill, Hillman's executive chairman commented: 'During 2024, Hillman delivered record bottom line results despite the soft macro environment. Our focus on disciplined execution and taking care of our customers added to Hillman's 60-year legacy of service, which resulted in us winning vendor of the year awards at our two biggest customers: Home Depot and Lowe's." Hillman pulled off the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 20.2% since reporting and currently trades at $8.79. Read our full report on Hillman here, it's free. Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors. Hyster-Yale Materials Handling reported revenues of $1.07 billion, up 3.9% year on year, outperforming analysts' expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts' EBITDA estimates and a decent beat of analysts' EPS estimates. Hyster-Yale Materials Handling delivered the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 20.2% since reporting. It currently trades at $41.34. Is now the time to buy Hyster-Yale Materials Handling? Access our full analysis of the earnings results here, it's free. Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors. Kennametal reported revenues of $482.1 million, down 2.7% year on year, falling short of analysts' expectations by 1%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts' expectations and a significant miss of analysts' adjusted operating income estimates. As expected, the stock is down 8.7% since the results and currently trades at $21.40. Read our full analysis of Kennametal's results here. Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries. Fortive reported revenues of $1.62 billion, up 2.3% year on year. This print lagged analysts' expectations by 0.5%. Overall, it was a slower quarter as it also recorded EPS guidance for next quarter missing analysts' expectations. Fortive had the weakest full-year guidance update among its peers. The stock is down 9.6% since reporting and currently trades at $72.21. Read our full, actionable report on Fortive here, it's free. With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Stanley Black & Decker reported revenues of $3.72 billion, flat year on year. This number surpassed analysts' expectations by 3.8%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts' organic revenue and EPS estimates. The stock is down 11.4% since reporting and currently trades at $76.87. Read our full, actionable report on Stanley Black & Decker here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
31-03-2025
- Business
- Yahoo
3 Reasons HLMN is Risky and 1 Stock to Buy Instead
Over the last six months, Hillman shares have sunk to $8.52, producing a disappointing 19.3% loss - worse than the S&P 500's 4.1% drop. This may have investors wondering how to approach the situation. Is there a buying opportunity in Hillman, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we're swiping left on Hillman for now. Here are three reasons why there are better opportunities than HLMN and a stock we'd rather own. Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ:HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Hillman's 3.9% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Hillman was profitable over the last five years but held back by its large cost base. Its average operating margin of 3.7% was weak for an industrials business. This result is surprising given its high gross margin as a starting point. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? A company's ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity). Hillman historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 4.4%, lower than the typical cost of capital (how much it costs to raise money) for industrials companies. Hillman isn't a terrible business, but it doesn't pass our bar. After the recent drawdown, the stock trades at 15.5× forward price-to-earnings (or $8.52 per share). This valuation multiple is fair, but we don't have much faith in the company. We're fairly confident there are better investments elsewhere. We'd suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we're here to help you pick them. Get started by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
