HERITAGE GLOBAL INC (HGBL) Stock Fundamental Analysis
NASDAQ:HGBL - Nasdaq - US42727E1038 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HGBL. HGBL was compared to 237 industry peers in the Capital Markets industry. Both the profitability and the financial health of HGBL get a neutral evaluation. Nothing too spectacular is happening here. HGBL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HGBL was profitable.
HGBL had a positive operating cash flow in the past year.
HGBL had positive earnings in each of the past 5 years.
Of the past 5 years HGBL 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.13%, HGBL is in the better half of the industry, outperforming 72.57% of the companies in the same industry.
The Return On Equity of HGBL (6.80%) is comparable to the rest of the industry.
HGBL has a Return On Invested Capital of 6.09%. This is in the better half of the industry: HGBL outperforms 71.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HGBL is in line with the industry average of 7.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.8% | ||
| ROIC | 6.09% |
ROA(3y)14.77%
ROA(5y)14.4%
ROE(3y)20.15%
ROE(5y)20.41%
ROIC(3y)9.06%
ROIC(5y)7.53%
1.3 Margins
HGBL has a Profit Margin of 9.53%. This is in the lower half of the industry: HGBL underperforms 62.03% of its industry peers.
HGBL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.79%, HGBL is doing worse than 68.78% of the companies in the same industry.
In the last couple of years the Operating Margin of HGBL has grown nicely.
The Gross Margin of HGBL (66.39%) is better than 72.57% of its industry peers.
HGBL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.79% | ||
| PM (TTM) | 9.53% | ||
| GM | 66.39% |
OM growth 3Y13.35%
OM growth 5Y10.34%
PM growth 3Y-1.15%
PM growth 5Y-5.18%
GM growth 3Y-1.1%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
The number of shares outstanding for HGBL has been reduced compared to 1 year ago.
The number of shares outstanding for HGBL has been increased compared to 5 years ago.
Compared to 1 year ago, HGBL has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.62, we must say that HGBL is in the distress zone and has some risk of bankruptcy.
HGBL's Altman-Z score of -0.62 is on the low side compared to the rest of the industry. HGBL is outperformed by 81.43% of its industry peers.
The Debt to FCF ratio of HGBL is 3.75, which is a good value as it means it would take HGBL, 3.75 years of fcf income to pay off all of its debts.
HGBL has a better Debt to FCF ratio (3.75) than 71.31% of its industry peers.
HGBL has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HGBL (0.06) is better than 81.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | -0.62 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.00 indicates that HGBL should not have too much problems paying its short term obligations.
With a decent Current ratio value of 2.00, HGBL is doing good in the industry, outperforming 68.35% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that HGBL should not have too much problems paying its short term obligations.
HGBL has a better Quick ratio (1.65) than 66.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
HGBL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.67%.
Measured over the past 5 years, HGBL shows a small growth in Earnings Per Share. The EPS has been growing by 1.44% on average per year.
HGBL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -25.08%.
Measured over the past years, HGBL shows a quite strong growth in Revenue. The Revenue has been growing by 11.63% on average per year.
EPS 1Y (TTM)-66.67%
EPS 3Y15.87%
EPS 5Y1.44%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)-25.08%
Revenue growth 3Y20.71%
Revenue growth 5Y11.63%
Sales Q2Q%18.94%
3.2 Future
Based on estimates for the next years, HGBL will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.66% on average per year.
The Revenue is expected to grow by 6.25% on average over the next years.
EPS Next Y12.93%
EPS Next 2Y17.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.83%
Revenue Next 2Y6.25%
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
HGBL is valuated rather expensively with a Price/Earnings ratio of 20.00.
The rest of the industry has a similar Price/Earnings ratio as HGBL.
Compared to an average S&P500 Price/Earnings ratio of 26.48, HGBL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.32, the valuation of HGBL can be described as reasonable.
Based on the Price/Forward Earnings ratio, HGBL is valued a bit cheaper than the industry average as 68.35% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HGBL to the average of the S&P500 Index (34.04), we can say HGBL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
88.61% of the companies in the same industry are more expensive than HGBL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HGBL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.67 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
HGBL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HGBL's earnings are expected to grow with 17.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.55
PEG (5Y)13.94
EPS Next 2Y17.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HGBL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:HGBL (8/8/2025, 8:00:02 PM)
2
-0.08 (-3.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners38.77%
Inst Owner Change-8.09%
Ins Owners12.88%
Ins Owner Change0.77%
Market Cap70.56M
Analysts84
Price Target3.75 (87.5%)
Short Float %0.15%
Short Ratio0.99
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)0
Avg EPS beat(2)-71.29%
Min EPS beat(2)-121.01%
Max EPS beat(2)-21.57%
EPS beat(4)0
Avg EPS beat(4)-48.88%
Min EPS beat(4)-121.01%
Max EPS beat(4)-1.96%
EPS beat(8)2
Avg EPS beat(8)-19.25%
EPS beat(12)6
Avg EPS beat(12)8.69%
EPS beat(16)6
Avg EPS beat(16)-6.78%
Revenue beat(2)1
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-14.15%
Max Revenue beat(2)10.82%
Revenue beat(4)1
Avg Revenue beat(4)-10.93%
Min Revenue beat(4)-23.68%
Max Revenue beat(4)10.82%
Revenue beat(8)2
Avg Revenue beat(8)-7.13%
Revenue beat(12)6
Avg Revenue beat(12)4.3%
Revenue beat(16)8
Avg Revenue beat(16)1.41%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.25%
EPS NY rev (1m)-5.1%
EPS NY rev (3m)-11.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 10.32 | ||
| P/S | 1.51 | ||
| P/FCF | 60.67 | ||
| P/OCF | 8.12 | ||
| P/B | 1.08 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)0.1
EY5%
EPS(NY)0.19
Fwd EY9.69%
FCF(TTM)0.03
FCFY1.65%
OCF(TTM)0.25
OCFY12.31%
SpS1.32
BVpS1.85
TBVpS1.55
PEG (NY)1.55
PEG (5Y)13.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 6.8% | ||
| ROCE | 8.3% | ||
| ROIC | 6.09% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 10.34% | ||
| OM | 12.79% | ||
| PM (TTM) | 9.53% | ||
| GM | 66.39% | ||
| FCFM | 2.49% |
ROA(3y)14.77%
ROA(5y)14.4%
ROE(3y)20.15%
ROE(5y)20.41%
ROIC(3y)9.06%
ROIC(5y)7.53%
ROICexc(3y)11.88%
ROICexc(5y)13.37%
ROICexgc(3y)15.54%
ROICexgc(5y)N/A
ROCE(3y)12.33%
ROCE(5y)10.25%
ROICexcg growth 3Y-7.36%
ROICexcg growth 5Y-37.82%
ROICexc growth 3Y8.82%
ROICexc growth 5Y-8.63%
OM growth 3Y13.35%
OM growth 5Y10.34%
PM growth 3Y-1.15%
PM growth 5Y-5.18%
GM growth 3Y-1.1%
GM growth 5Y-0.45%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 1324.47% | ||
| Cap/Sales | 16.12% | ||
| Interest Coverage | 119.32 | ||
| Cash Conversion | 132.94% | ||
| Profit Quality | 26.15% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | -0.62 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)37.97%
Cap/Depr(5y)85.51%
Cap/Sales(3y)0.4%
Cap/Sales(5y)1.36%
Profit Quality(3y)96.52%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.67%
EPS 3Y15.87%
EPS 5Y1.44%
EPS Q2Q%-28.57%
EPS Next Y12.93%
EPS Next 2Y17.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-25.08%
Revenue growth 3Y20.71%
Revenue growth 5Y11.63%
Sales Q2Q%18.94%
Revenue Next Year6.83%
Revenue Next 2Y6.25%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-48.18%
EBIT growth 3Y36.82%
EBIT growth 5Y23.17%
EBIT Next Year-6.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-90.34%
FCF growth 3YN/A
FCF growth 5Y62.57%
OCF growth 1Y-29.61%
OCF growth 3YN/A
OCF growth 5Y57.86%