HUDSON TECHNOLOGIES INC (HDSN) Stock Fundamental Analysis
NASDAQ:HDSN - Nasdaq - US4441441098 - Common Stock - Currency: USD
Taking everything into account, HDSN scores 6 out of 10 in our fundamental rating. HDSN was compared to 48 industry peers in the Trading Companies & Distributors industry. HDSN has an excellent financial health rating, but there are some minor concerns on its profitability. HDSN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HDSN was profitable.
In the past year HDSN had a positive cash flow from operations.
HDSN had positive earnings in 4 of the past 5 years.
Of the past 5 years HDSN 4 years had a positive operating cash flow.
1.2 Ratios
HDSN's Return On Assets of 8.06% is fine compared to the rest of the industry. HDSN outperforms 70.83% of its industry peers.
HDSN's Return On Equity of 9.92% is in line compared to the rest of the industry. HDSN outperforms 43.75% of its industry peers.
HDSN's Return On Invested Capital of 8.68% is fine compared to the rest of the industry. HDSN outperforms 72.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HDSN is significantly above the industry average of 9.18%.
The 3 year average ROIC (26.20%) for HDSN is well above the current ROIC(8.68%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.06% | ||
| ROE | 9.92% | ||
| ROIC | 8.68% |
ROA(3y)21.25%
ROA(5y)15.1%
ROE(3y)30.7%
ROE(5y)24.97%
ROIC(3y)26.2%
ROIC(5y)20.28%
1.3 Margins
HDSN has a Profit Margin of 10.29%. This is in the better half of the industry: HDSN outperforms 79.17% of its industry peers.
In the last couple of years the Profit Margin of HDSN has declined.
HDSN's Operating Margin of 12.36% is fine compared to the rest of the industry. HDSN outperforms 72.92% of its industry peers.
HDSN's Operating Margin has declined in the last couple of years.
HDSN has a Gross Margin (27.71%) which is in line with its industry peers.
In the last couple of years the Gross Margin of HDSN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.36% | ||
| PM (TTM) | 10.29% | ||
| GM | 27.71% |
OM growth 3Y-17.43%
OM growth 5YN/A
PM growth 3Y-15.02%
PM growth 5YN/A
GM growth 3Y-9.36%
GM growth 5Y21.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HDSN is creating value.
HDSN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HDSN has more shares outstanding
There is no outstanding debt for HDSN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
HDSN has an Altman-Z score of 5.89. This indicates that HDSN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.89, HDSN belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
HDSN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.89 |
ROIC/WACC0.87
WACC10%
2.3 Liquidity
HDSN has a Current Ratio of 4.09. This indicates that HDSN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.09, HDSN belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
A Quick Ratio of 2.08 indicates that HDSN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.08, HDSN is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.08 |
3. Growth
3.1 Past
HDSN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.08%.
HDSN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.44% yearly.
HDSN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.96%.
HDSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.90% yearly.
EPS 1Y (TTM)-64.08%
EPS 3Y-10.44%
EPS 5YN/A
EPS Q2Q%-70%
Revenue 1Y (TTM)-17.96%
Revenue growth 3Y7.16%
Revenue growth 5Y7.9%
Sales Q2Q%-15.18%
3.2 Future
The Earnings Per Share is expected to grow by 7.52% on average over the next years.
Based on estimates for the next years, HDSN will show a small growth in Revenue. The Revenue will grow by 2.44% on average per year.
EPS Next Y-20.7%
EPS Next 2Y7.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.45%
Revenue Next 2Y2.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 20.08, which indicates a rather expensive current valuation of HDSN.
Compared to the rest of the industry, the Price/Earnings ratio of HDSN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of HDSN to the average of the S&P500 Index (26.03), we can say HDSN is valued slightly cheaper.
The Price/Forward Earnings ratio is 12.60, which indicates a correct valuation of HDSN.
70.83% of the companies in the same industry are more expensive than HDSN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, HDSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HDSN is valued cheaper than 81.25% of the companies in the same industry.
HDSN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HDSN is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.78 | ||
| EV/EBITDA | 7.52 |
4.3 Compensation for Growth
The decent profitability rating of HDSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HDSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.43
-0.27 (-3.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners74.33%
Inst Owner Change3.6%
Ins Owners12%
Ins Owner Change0%
Market Cap326.77M
Analysts48.89
Price Target6.69 (-9.96%)
Short Float %3.19%
Short Ratio2.14
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)1
Avg EPS beat(2)-241.46%
Min EPS beat(2)-488.23%
Max EPS beat(2)5.32%
EPS beat(4)2
Avg EPS beat(4)-126.27%
Min EPS beat(4)-488.23%
Max EPS beat(4)5.32%
EPS beat(8)5
Avg EPS beat(8)-58.46%
EPS beat(12)9
Avg EPS beat(12)18.2%
EPS beat(16)13
Avg EPS beat(16)72.2%
Revenue beat(2)0
Avg Revenue beat(2)-9.33%
Min Revenue beat(2)-10.52%
Max Revenue beat(2)-8.14%
Revenue beat(4)1
Avg Revenue beat(4)-6.11%
Min Revenue beat(4)-10.52%
Max Revenue beat(4)0.99%
Revenue beat(8)2
Avg Revenue beat(8)-4.74%
Revenue beat(12)6
Avg Revenue beat(12)4.65%
Revenue beat(16)9
Avg Revenue beat(16)6.6%
PT rev (1m)0%
PT rev (3m)-10.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-10.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)-3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 12.6 | ||
| P/S | 1.38 | ||
| P/FCF | 3.78 | ||
| P/OCF | 3.56 | ||
| P/B | 1.33 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 7.52 |
EPS(TTM)0.37
EY4.98%
EPS(NY)0.59
Fwd EY7.93%
FCF(TTM)1.97
FCFY26.47%
OCF(TTM)2.09
OCFY28.1%
SpS5.39
BVpS5.59
TBVpS3.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.06% | ||
| ROE | 9.92% | ||
| ROCE | 11.5% | ||
| ROIC | 8.68% | ||
| ROICexc | 11.98% | ||
| ROICexgc | 20.42% | ||
| OM | 12.36% | ||
| PM (TTM) | 10.29% | ||
| GM | 27.71% | ||
| FCFM | 36.48% |
ROA(3y)21.25%
ROA(5y)15.1%
ROE(3y)30.7%
ROE(5y)24.97%
ROIC(3y)26.2%
ROIC(5y)20.28%
ROICexc(3y)28.13%
ROICexc(5y)21.53%
ROICexgc(3y)41.04%
ROICexgc(5y)33.11%
ROCE(3y)34.71%
ROCE(5y)27.37%
ROICexcg growth 3Y-15.43%
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.17%
ROICexc growth 5YN/A
OM growth 3Y-17.43%
OM growth 5YN/A
PM growth 3Y-15.02%
PM growth 5YN/A
GM growth 3Y-9.36%
GM growth 5Y21.17%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.98% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 42.47 | ||
| Cash Conversion | 257.26% | ||
| Profit Quality | 354.73% | ||
| Current Ratio | 4.09 | ||
| Quick Ratio | 2.08 | ||
| Altman-Z | 5.89 |
F-Score6
WACC10%
ROIC/WACC0.87
Cap/Depr(3y)68.73%
Cap/Depr(5y)52.28%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.32%
Profit Quality(3y)172.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.08%
EPS 3Y-10.44%
EPS 5YN/A
EPS Q2Q%-70%
EPS Next Y-20.7%
EPS Next 2Y7.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-17.96%
Revenue growth 3Y7.16%
Revenue growth 5Y7.9%
Sales Q2Q%-15.18%
Revenue Next Year-4.45%
Revenue Next 2Y2.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-62.55%
EBIT growth 3Y-11.52%
EBIT growth 5YN/A
EBIT Next Year-9.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y57.39%
FCF growth 3YN/A
FCF growth 5Y21.4%
OCF growth 1Y56.82%
OCF growth 3YN/A
OCF growth 5Y22.11%