Current Analysis: Hella GmbH (HLLGY)

Hella GmbH & Co KGaA (HLLGY) is a manufacturer of lighting and electronic components and systems for the automotive industry.

The company also produces complete vehicle modules, air-conditioning systems, and vehicle electrical systems in its joint-venture companies, as well as products for specialist vehicles.

Further, Hella operates a trade organisation for automotive parts, accessories, diagnosis, and services in Europe.

Photo by CHUTTERSNAP on Unsplash

The company is controlled through a pooled family majority shareholding in the group. The company has three reportable segments which are (1) Lighting, (2) Electronics and (3) Lifecycle Solutions. The company generates majority of the revenue from the Lighting segment.

The company was formerly known as Hella KGaA Hueck & Co. and changed its name to Hella GmbH & Co. KGaA in October 2017.

Hella GmbH & Co. KGaA was founded in 1899 and is headquartered in Lippstadt, Germany.

Hella GmbH & Co. KGaA operates as a subsidiary of Faurecia S.E.

Three key data points gauge Hella GmbH & Co KGaA or any dividend-paying firm.The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

 

HLLGY Price

Over the past year, Hella’s share rose fell about 8% from $34.87 to $37.65 as of Friday’s  market close.

If Hella’s stock trades in the range of $35.00 to $45.00 this next year, its recent $37.65 share price might rise to $40.00 by next year. Of course, Hella’s price could drop about the same $2.35 amount, or more.

My upside estimate of $2.35, however, is just under half the average annual Hella price gains over the past three years.

 

HLLGY Dividend

Hella’s most recent variable dividends have been paid annually, except for 2020. Hella’s most recent dividend, paid May 19, was $1.59.   Hella’s  Annual dividend payout has varied between $0.0 IN 2020 and that $1.89 amount PAID IN 2019. The average of those seven payouts is $0.83.  However I used the most recent payment as the  next likely annual dividend.

 

HLLGY Returns

Adding the $1.59  anticipated annual dividend to HLLGY’s estimated $2.35 price upside, reveals a $3.94 potential gross gain per share for the coming year.

At Friday’s $37.65 closing price, a little over $1000 would buy 27 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.37 per share.

Subtracting that maybe $0.37 brokerage cost from my estimated $3.94 gross gain per share makes a net gain amounting to $3.57 X 27 shares = $96.39 for about a 9.6% net gain.

This may be the time to pounce on Hella GmbH & Co KGaA shares. But beware of its variable dividend payouts. However the estimated $42.20 dividend from $1000 invested comes in at $4.55 more than the recent single share price. The choice is yours.

The foregoing article is based on past history of Hella GmbH & Co KGaA. The only accurate measure of future performance is from active investment in the company.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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