Hyliion (HYLN) Stock | Long Term Analysis | Overvalued or Undervalued |

All right hello and welcome everybody to another stock analysis video where today we’ll be talking about Hyliion ticker symbol HYLN now this company is traded on the nasdaq currently and this is a company that went public through spack about a year ago and so i want to make a full long-term analysis on this company because i’ve been seeing a lot of renewed interest in these ev companies and so i want to see if i could find a really good long-term investment for maybe an ev company or something fancy that maybe went public through spac as they’re kind of they may be more riskier assets but they may be more rewarding assets in the long term so we’re going to talk about the long-term growth of the company we’re going to talk about the value of the company whether that be through the book value the price stirrings now things like that we’re going to talk about all those kind of things in this video anyway if you like this video please do like subscribe it’s about our channel and let’s get this content out to more people so that more people can understand how helion works and also the other stocks that we talk about work as well on our channel anyway thank you so much for watching without further ado let’s get started now hillian primarily makes two trucks they make a hybrid powered truck and then they also make a actual ev truck and this is a fully electric vehicle that they can make so this is supposed to compete with maybe the tesla semi and other potentially new ev trucks like that so this is what helium is making and then they also of course like i said they were making a hybrid electric truck for if you are interested in maybe taking your old diesel truck you want to make it into a hybrid healing will make that happen so they offer really a service for the second one so once again this is a electric vehicle truck then this is an actual service that they can offer which allows you to transform your maybe your peterbilt or any other major branded truck into a fully hybrid vehicle that you can maybe get longer range on get better power and other things like that so the kind of that’s the whole point of this also bear gas mileage so i think that this is going to be very successful if hillian is truly honest about this now just a few more things i want to point out before we get into the value of this company that would be that the company is being added to the russell 3000 and russell 2000 indices according to business wire of course this is what they’re set to do so they may not actually be added to the russell 3000 or the russell 2000 but this is something that they believe is going to happen this was as of 20 the 27th of july in 2021 so if this company does join those indices that should actually jump the price tremendously just because those companies or i mean those indices have to actually purchase quite a bit of shares in order to add them properly to their holdings so although they hold 3000 stocks and then you know the russell 2000 knows 2000 sucks this is still a position that they’re going to have to add the healing and i think that will actually add some pretty good shareholder value for the future when large shareholders purchase lots of stock the company tends to be less volatile so i think that that’s going to help hillian to be less volatile in the future as they were quite volatile back when they first went public now i really want to get into the value of this company this is where things get pretty interesting so the book value is at about 3.52 cents a share which shows that the company relative to its price or its trading value is at about price to book of about two and a half or three so that is pretty interesting the company does have a price of about nine dollars a share at this point so that’s the trading value of the stock but the book value being about three dollars fifty cents actually is pretty good in terms of the electric vehicle industry you’re going to have to pay a premium likely in order to buy one of these companies we have to understand too that this company doesn’t bring in that much money we can see that hillian has brought in about 330 million dollars in one of the more recent quarters however i think this is really just because around this time this was about december the december quarter the company went public fully or the transaction completed in about mid-october or about the beginning of october depending around there so that is where hillian received a lot of cash so i think this could be including quite a bit of cash that they received from just the merger the company was expected to receive about 560 million dollars worth of cash through the transaction of the spac merging with the hillian company in order to make it public so therefore i think that this company actually still is not profitable and so despite the fact that the company currently has a price earnings of about three or three and a half or something like that because the company has made all of a sudden a lot of money recently that doesn’t actually mean the company is any profit also one more thing i want to know is that this company doesn’t have any debt this is pretty surprising for an ev company to not any debt as a lot of them tend to leverage and make try to get as much money as possible and then just start investing it and kind of just building it as quickly as possible hillian’s been very careful i think that that’s actually a better thing that they aren’t taking on as much debt because it’s very hard for a company to go bankrupt when there’s no debt to go bankrupt on so even though a company is losing money i do understand that they aren’t losing money as nearly as fast a raise as if they were leveraging and taking on debt as they would have to meet interest payments and things like that so definitely keep that in mind it’s i think killian’s management of their finances is actually not bad and i think that they should be able to benefit from this in the long term now just two more things the company is actually issuing more shares at a relatively slow rate but the company is not buying back their own stock at any point in time so definitely keep that in mind this company also is not paying out a dividend and this company is not paying out a demand either so this company is not buying back its own stock and it’s also not paying out a dividend so it’s not giving out anything to its shareholders but that’s not the point when you’re buying an ev company like this you’re really buying more of a startup so although you may be interested in getting some sort of return on your investment immediately from just owning the stock maybe getting a set demand every year this company just won’t be able to offer it to you because hillian doesn’t have any income to pay you so therefore they can’t pay a dividend and so they’re not going to also buy back their own stock either so keep that in mind as killian is really a startup investment and not really a long-term value investment at this point i do consider them to be a very good growth stock in my opinion i really am not sure where the history lies in this company so do understand that there’s a tremendous amount of risk in buying an ev startup like this as you are essentially buying blind in a way because you are not really sure of where the company is going to go in the future but maybe it’s worth a small investment if you feel like it you can hold it for the long term and see what happens so definitely make sure you take a lot of risk management into the into your investment if you choose to invest in this company so i am not a financial advisor or anything like that i am also not offering financial advice by making this video so please do your research for investing anyway thank you so much for watching if you liked this video please do like subscribe and subscribe our channel and please comment down below and tell us if you think about this company we’ll try to get back to you anyway thanks again for watching have a good day everybody