This company has a great business and great financials - but at the same time has a remarkably low correlation (beta risk) with the market. I am not sure I understand why or how long it will last for - but it is an interesting bonus. It is not the reason why I am buying the stock - just notable.
Hilan Ltd (OTC:HLTEF) (HLAN.TA)
Hilan is one of Israel's leading Software as a Service (SaaS) providers. It offers a complete solution for managing enterprise human capital. Over the past five decades, Hilan has developed solutions in the areas of payroll, HR, time and attendance and pension, managing the entire employee life-cycle from recruitment to retirement.
Key Statistics - What not to like?
Low debt, high return on equity (ROE) 34%, great growth rate over the past 10 years 18% - but hang on a P/E of 23.6 - are you crazy?
Not crazy - look at Step 2 in my buying process and you will understand that if you take into account the high growth rate - that P/E multiple does not look so bad. And the P/E ratio seems a lot less than similar USA based companies like Paycom (NYSE:PAYC). Also Paycom share price is more correlated with the market as it has a beta of 1.54 compared to the beta for Hilan of 0.3.
Hilan is worth a look - you might like it. I did and I bought it.
Not Investment Advice
As always this is not investment advice. Do you own research. Consult your own professional advisors.