Holley (HLLY) Stock Analysis & Winston Score

Holley Inc. makes performance parts and accessories for cars and trucks. Its products include fuel systems, exhaust systems, superchargers, and engine tuning tools sold under well-known brands like Holley, MSD, Flowmaster, and Edelbrock. The company sells mostly to car enthusiasts and hobbyists who modify or restore their vehicles for street driving or racing.

Holley makes money by selling hardware — physical parts — through retailers, distributors, and its own websites, primarily in the United States. It has built a portfolio of over a dozen recognized brands in the performance aftermarket, which gives it shelf space and customer loyalty that smaller competitors struggle to match. However, the company carries a significant debt load from past acquisitions, and its sales depend heavily on consumers having extra money to spend on hobby vehicles, making it vulnerable when household budgets tighten.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+155.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

56.9%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~10 months

$33M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Holley has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

38.9%

Modest — 38.9% gross margin

Operating Margin

12.5%

Healthy — 12.5% operating margin

ROCE

1.8%

Weak — 1.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+1.9%

Nearly flat sales (1.9% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

228%

Turns 228% of profit into real cash

FCF Margin

3.3%

Thin free cash flow (3.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.19

Elevated debt (1.19)

Interest Cover

1.79x

Dangerous — barely covers interest (1.8x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

13.0x

no trend

Attractive valuation — P/E 13.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+8.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (13.0 → 4.5)

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Dividends

Not applicable for this business.

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