HUDSON GLOBAL INC (HSON)
US4437872058 - Common Stock
We assign a fundamental rating of 4 out of 10 to HSON. HSON was compared to 81 industry peers in the Professional Services industry. While HSON has a great health rating, there are worries on its profitability. HSON has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HSON had positive earnings in the past year.
HSON had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HSON reported negative net income in multiple years.
In multiple years HSON reported negative operating cash flow during the last 5 years.
1.2 Ratios
HSON has a Return On Assets of 3.66%. This is comparable to the rest of the industry: HSON outperforms 53.75% of its industry peers.
HSON has a Return On Equity (4.60%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.32%, HSON is not doing good in the industry: 63.75% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for HSON is below the industry average of 12.22%.
The last Return On Invested Capital (2.32%) for HSON is well below the 3 year average (9.00%), which needs to be investigated, but indicates that HSON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 4.6% | ||
| ROIC | 2.32% |
ROA(3y)6.43%
ROA(5y)2.9%
ROE(3y)9.39%
ROE(5y)4.38%
ROIC(3y)9%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.38%, HSON perfoms like the industry average, outperforming 46.25% of the companies in the same industry.
HSON's Profit Margin has declined in the last couple of years.
HSON has a worse Operating Margin (0.89%) than 67.50% of its industry peers.
HSON's Gross Margin of 49.79% is fine compared to the rest of the industry. HSON outperforms 61.25% of its industry peers.
HSON's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.89% | ||
| PM (TTM) | 1.38% | ||
| GM | 49.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-35.07%
GM growth 3Y8.86%
GM growth 5Y-4.59%
2. Health
2.1 Basic Checks
HSON has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HSON has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HSON has less shares outstanding
HSON has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HSON has an Altman-Z score of -4.00. This is a bad value and indicates that HSON is not financially healthy and even has some risk of bankruptcy.
HSON has a Altman-Z score of -4.00. This is amonst the worse of the industry: HSON underperforms 92.50% of its industry peers.
There is no outstanding debt for HSON. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | -4 |
ROIC/WACC0.25
WACC9.27%
2.3 Liquidity
A Current Ratio of 4.09 indicates that HSON has no problem at all paying its short term obligations.
HSON has a better Current ratio (4.09) than 93.75% of its industry peers.
HSON has a Quick Ratio of 4.09. This indicates that HSON is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.09, HSON belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.09 | ||
| Quick Ratio | 4.09 |
3. Growth
3.1 Past
HSON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.73%.
The earnings per share for HSON have been decreasing by -21.78% on average. This is quite bad
HSON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.68%.
HSON shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.25% yearly.
EPS 1Y (TTM)-72.73%
EPS 3YN/A
EPS 5Y-21.78%
EPS growth Q2Q1050%
Revenue 1Y (TTM)-19.68%
Revenue growth 3Y16.74%
Revenue growth 5Y19.25%
Revenue growth Q2Q-22.08%
3.2 Future
HSON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 70.22% yearly.
Based on estimates for the next years, HSON will show a small growth in Revenue. The Revenue will grow by 7.56% on average per year.
EPS Next Y31.57%
EPS Next 2Y70.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.03%
Revenue Next 2Y7.56%
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 accelerating.
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 25.10, which means the current valuation is very expensive for HSON.
HSON's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.92. HSON is around the same levels.
A Price/Forward Earnings ratio of 19.08 indicates a rather expensive valuation of HSON.
HSON's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. HSON is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
HSON's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSON is cheaper than 82.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HSON is valued a bit more expensive than 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 226.12 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HSON's earnings are expected to grow with 70.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y70.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HUDSON GLOBAL INC
NASDAQ:HSON (4/26/2024, 7:00:02 PM)
17.32
+0.4 (+2.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap48.84M
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)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 19.08 | ||
| 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)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.66% | ||
| ROE | 4.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.89% | ||
| PM (TTM) | 1.38% | ||
| GM | 49.79% | ||
| 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 Turnover2.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.09 | ||
| Quick Ratio | 4.09 | ||
| 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)-72.73%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y31.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.68%
Revenue growth 3Y16.74%
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
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y