HERITAGE GLOBAL INC (HGBL)
US42727E1038 - Common Stock
Overall HGBL gets a fundamental rating of 6 out of 10. We evaluated HGBL against 212 industry peers in the Capital Markets industry. HGBL scores excellent on profitability, but there are some minor concerns on its financial health. HGBL is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make HGBL suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year HGBL was profitable.
HGBL had a positive operating cash flow in the past year.
Each year in the past 5 years HGBL has been profitable.
HGBL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HGBL (15.01%) is better than 96.17% of its industry peers.
HGBL's Return On Equity of 20.43% is amongst the best of the industry. HGBL outperforms 88.52% of its industry peers.
With an excellent Return On Invested Capital value of 17.26%, HGBL belongs to the best of the industry, outperforming 92.34% of the companies in the same industry.
HGBL had an Average Return On Invested Capital over the past 3 years of 10.20%. This is in line with the industry average of 10.67%.
The 3 year average ROIC (10.20%) for HGBL is below the current ROIC(17.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.01% | ||
| ROE | 20.43% | ||
| ROIC | 17.26% |
ROA(3y)14.66%
ROA(5y)16.69%
ROE(3y)20.61%
ROE(5y)25.4%
ROIC(3y)10.2%
ROIC(5y)10.56%
1.3 Margins
HGBL has a Profit Margin (20.61%) which is in line with its industry peers.
In the last couple of years the Profit Margin of HGBL has grown nicely.
With a Operating Margin value of 21.89%, HGBL perfoms like the industry average, outperforming 40.19% of the companies in the same industry.
HGBL's Operating Margin has improved in the last couple of years.
HGBL has a Gross Margin of 65.78%. This is in the better half of the industry: HGBL outperforms 65.07% of its industry peers.
In the last couple of years the Gross Margin of HGBL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.89% | ||
| PM (TTM) | 20.61% | ||
| GM | 65.78% |
OM growth 3Y36.39%
OM growth 5Y4.9%
PM growth 3Y-17.65%
PM growth 5Y5.39%
GM growth 3Y0.28%
GM growth 5Y-4.53%
2. Health
2.1 Basic Checks
Compared to 1 year ago, HGBL has more shares outstanding
HGBL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HGBL has a worse debt to assets ratio.
2.2 Solvency
HGBL has an Altman-Z score of -0.03. This is a bad value and indicates that HGBL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HGBL (-0.03) is worse than 77.03% of its industry peers.
HGBL has a debt to FCF ratio of 0.57. This is a very positive value and a sign of high solvency as it would only need 0.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.57, HGBL belongs to the top of the industry, outperforming 89.00% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that HGBL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, HGBL belongs to the top of the industry, outperforming 80.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | -0.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HGBL has a Current Ratio of 1.78. This is a normal value and indicates that HGBL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.78, HGBL is in the better half of the industry, outperforming 66.03% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that HGBL should not have too much problems paying its short term obligations.
HGBL has a Quick ratio of 1.44. This is in the better half of the industry: HGBL outperforms 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.48% over the past year.
The Earnings Per Share has been growing by 20.62% on average over the past years. This is a very strong growth
The Revenue has grown by 29.04% in the past year. This is a very strong growth!
HGBL shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.67% yearly.
EPS 1Y (TTM)43.48%
EPS 3Y3.42%
EPS 5Y20.62%
EPS growth Q2Q62.5%
Revenue 1Y (TTM)29.04%
Revenue growth 3Y32.24%
Revenue growth 5Y20.67%
Revenue growth Q2Q10.51%
3.2 Future
The Earnings Per Share is expected to grow by 12.57% on average over the next years. This is quite good.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-2.12%
EPS Next 2Y12.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.23%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
HGBL is valuated cheaply with a Price/Earnings ratio of 7.39.
Based on the Price/Earnings ratio, HGBL is valued cheaply inside the industry as 82.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.28. HGBL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.55 indicates a rather cheap valuation of HGBL.
83.73% of the companies in the same industry are more expensive than HGBL, based on the Price/Forward Earnings ratio.
HGBL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HGBL is valued cheaper than 89.47% of the companies in the same industry.
HGBL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HGBL is cheaper than 81.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
The decent profitability rating of HGBL may justify a higher PE ratio.
HGBL's earnings are expected to grow with 12.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y12.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HGBL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HERITAGE GLOBAL INC
NASDAQ:HGBL (5/3/2024, 7:00:01 PM)
2.44
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap91.11M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 7.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.01% | ||
| ROE | 20.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.89% | ||
| PM (TTM) | 20.61% | ||
| GM | 65.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)43.48%
EPS 3Y3.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.04%
Revenue growth 3Y32.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
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