DHI GROUP INC (DHX) Stock Fundamental Analysis
NYSE:DHX - New York Stock Exchange, Inc. - US23331S1006 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DHX. DHX was compared to 71 industry peers in the Interactive Media & Services industry. There are concerns on the financial health of DHX while its profitability can be described as average. DHX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DHX was profitable.
In the past year DHX had a positive cash flow from operations.
In multiple years DHX reported negative net income over the last 5 years.
Each year in the past 5 years DHX had a positive operating cash flow.
1.2 Ratios
DHX has a Return On Assets of -3.58%. This is comparable to the rest of the industry: DHX outperforms 43.66% of its industry peers.
With a Return On Equity value of -7.30%, DHX perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
DHX's Return On Invested Capital of 3.33% is fine compared to the rest of the industry. DHX outperforms 69.01% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DHX is significantly below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.58% | ||
| ROE | -7.3% | ||
| ROIC | 3.33% |
ROA(3y)1.17%
ROA(5y)-4.47%
ROE(3y)2.47%
ROE(5y)-8.33%
ROIC(3y)3.66%
ROIC(5y)3.04%
1.3 Margins
DHX's Profit Margin has declined in the last couple of years.
DHX has a Operating Margin of 4.53%. This is in the better half of the industry: DHX outperforms 63.38% of its industry peers.
DHX's Operating Margin has declined in the last couple of years.
DHX has a better Gross Margin (85.01%) than 83.10% of its industry peers.
In the last couple of years the Gross Margin of DHX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.53% | ||
| PM (TTM) | N/A | ||
| GM | 85.01% |
OM growth 3Y235.07%
OM growth 5Y-16.43%
PM growth 3YN/A
PM growth 5Y-53.76%
GM growth 3Y-0.64%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DHX is destroying value.
The number of shares outstanding for DHX has been increased compared to 1 year ago.
The number of shares outstanding for DHX has been reduced compared to 5 years ago.
DHX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that DHX is in the distress zone and has some risk of bankruptcy.
DHX has a Altman-Z score (1.40) which is in line with its industry peers.
The Debt to FCF ratio of DHX is 3.45, which is a good value as it means it would take DHX, 3.45 years of fcf income to pay off all of its debts.
DHX has a Debt to FCF ratio of 3.45. This is in the better half of the industry: DHX outperforms 64.79% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that DHX is not too dependend on debt financing.
The Debt to Equity ratio of DHX (0.32) is worse than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.37
WACC9.03%
2.3 Liquidity
A Current Ratio of 0.47 indicates that DHX may have some problems paying its short term obligations.
DHX has a Current ratio of 0.47. This is amonst the worse of the industry: DHX underperforms 91.55% of its industry peers.
A Quick Ratio of 0.47 indicates that DHX may have some problems paying its short term obligations.
DHX has a Quick ratio of 0.47. This is amonst the worse of the industry: DHX underperforms 90.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
DHX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.14%, which is quite impressive.
DHX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.16% yearly.
Looking at the last year, DHX shows a decrease in Revenue. The Revenue has decreased by -7.42% in the last year.
The Revenue has been decreasing by -1.02% on average over the past years.
EPS 1Y (TTM)57.14%
EPS 3YN/A
EPS 5Y-3.16%
EPS Q2Q%-20%
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y5.78%
Revenue growth 5Y-1.02%
Sales Q2Q%-10.34%
3.2 Future
The Earnings Per Share is expected to decrease by -32.64% on average over the next years. This is quite bad
Based on estimates for the next years, DHX will show a decrease in Revenue. The Revenue will decrease by -3.31% on average per year.
EPS Next Y-66.33%
EPS Next 2Y-32.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.34%
Revenue Next 2Y-3.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.55 indicates a reasonable valuation of DHX.
Compared to the rest of the industry, the Price/Earnings ratio of DHX indicates a somewhat cheap valuation: DHX is cheaper than 78.87% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.57, DHX is valued rather cheaply.
With a Price/Forward Earnings ratio of 24.34, DHX is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as DHX.
The average S&P500 Price/Forward Earnings ratio is at 22.41. DHX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 24.34 |
4.2 Price Multiples
DHX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DHX is cheaper than 90.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DHX is valued a bit cheaper than 74.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.96 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
DHX's earnings are expected to decrease with -32.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-32.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DHX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.54
+0.03 (+1.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners67.35%
Inst Owner Change-0.31%
Ins Owners16.28%
Ins Owner Change7.29%
Market Cap123.83M
Analysts82.86
Price Target4.85 (90.94%)
Short Float %0.55%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)404.76%
Min EPS beat(2)315.76%
Max EPS beat(2)493.76%
EPS beat(4)4
Avg EPS beat(4)236.07%
Min EPS beat(4)65.02%
Max EPS beat(4)493.76%
EPS beat(8)7
Avg EPS beat(8)156.46%
EPS beat(12)10
Avg EPS beat(12)183.35%
EPS beat(16)11
Avg EPS beat(16)-660.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-1%
Max Revenue beat(2)0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)0.45%
Revenue beat(8)2
Avg Revenue beat(8)-0.73%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)1.04%
PT rev (1m)-2.56%
PT rev (3m)-2.56%
EPS NQ rev (1m)16.65%
EPS NQ rev (3m)16.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 24.34 | ||
| P/S | 0.9 | ||
| P/FCF | 12.96 | ||
| P/OCF | 5.84 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.49 |
EPS(TTM)0.22
EY8.66%
EPS(NY)0.1
Fwd EY4.11%
FCF(TTM)0.2
FCFY7.72%
OCF(TTM)0.43
OCFY17.13%
SpS2.83
BVpS2.13
TBVpS-0.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.58% | ||
| ROE | -7.3% | ||
| ROCE | 4.21% | ||
| ROIC | 3.33% | ||
| ROICexc | 3.39% | ||
| ROICexgc | 346.1% | ||
| OM | 4.53% | ||
| PM (TTM) | N/A | ||
| GM | 85.01% | ||
| FCFM | 6.91% |
ROA(3y)1.17%
ROA(5y)-4.47%
ROE(3y)2.47%
ROE(5y)-8.33%
ROIC(3y)3.66%
ROIC(5y)3.04%
ROICexc(3y)3.75%
ROICexc(5y)3.13%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.63%
ROCE(5y)3.85%
ROICexcg growth 3Y308.37%
ROICexcg growth 5Y-14.06%
ROICexc growth 3Y255.67%
ROICexc growth 5Y-13.05%
OM growth 3Y235.07%
OM growth 5Y-16.43%
PM growth 3YN/A
PM growth 5Y-53.76%
GM growth 3Y-0.64%
GM growth 5Y-0.76%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 66.57% | ||
| Cap/Sales | 8.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.4 |
F-Score5
WACC9.03%
ROIC/WACC0.37
Cap/Depr(3y)100.02%
Cap/Depr(5y)103.51%
Cap/Sales(3y)11.72%
Cap/Sales(5y)11.77%
Profit Quality(3y)1091.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)57.14%
EPS 3YN/A
EPS 5Y-3.16%
EPS Q2Q%-20%
EPS Next Y-66.33%
EPS Next 2Y-32.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.42%
Revenue growth 3Y5.78%
Revenue growth 5Y-1.02%
Sales Q2Q%-10.34%
Revenue Next Year-7.34%
Revenue Next 2Y-3.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-38.07%
EBIT growth 3Y254.44%
EBIT growth 5Y-17.28%
EBIT Next Year289.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.83%
FCF growth 3Y-20.72%
FCF growth 5Y-4.01%
OCF growth 1Y-20.96%
OCF growth 3Y-9.7%
OCF growth 5Y-1.69%