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Haynes International Inc
Haynes International Inc. (NASDAQ: HAYN) is a sheet, coil, and plate manufacturer of nickel and cobalt-based alloys. The company's focus is on creating, producing, marketing, and distributing alloys for the aerospace, chemical processing, and industrial gas turbine sectors. High-temperature resistant alloys (HTA) and corrosion-resistant alloys (CRA) are among the company's offerings.
Latest News
Q2 FY22 Quarterly Financial result
Key Risks
Outlook
The large improvement in order entry rates over the last two quarters gives reason to be optimistic about the rest of the fiscal year. Increased shipments are expected in the second half of the fiscal year because of the Company's successful efforts to boost production rates through personnel increases and continuing inventory investment. Revenue and earnings are expected to be higher in the third quarter of fiscal 2022 than in the second quarter. Volume growth, continuous price, cost actions, and growing raw material tailwinds all contribute to increased profit leverage.
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
Source: REFINITIV, Analysis: Kalkine Group
*% Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation
HAYN's stock price has fallen 15.37% in the past six months and is currently leaning towards the lower side of its 52-week range of USD 30.83 to USD 49.76. HAYN stock is under a long-term bearish cycle with the current price below both short-term (50-day) SMA and long-term (200-day) SMA. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 43.91
Considering the strong mining results for Q2 FY22, solid topline performance, positive outlook, associated risks, and current valuation. We recommend a "Speculative Buy" rating on the stock at the closing price of USD 36.98 as of 20th May 2022.
One-year technical chart as of 20th May 2022. Source: REFINITIV. Analysis by Kalkine group
Technical Analysis Summary
* Closing price as of 20th May 2022.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
Note 3: The report publishing date is as per the Pacific Time Zone.