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Hudson Global Inc (HSON)
NASDAQ:HSON
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Hudson Global
(NASDAQ:HSON)
48Neutral
Hudson Global (HSON) vs. S&P 500 (SPY)
Market Cap
$27.58M
Dividend YieldN/A
Average Volume (3M)3.12K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-17.86%
EPS Growth-329.78%
CountryUS
Employees1,050
SectorIndustrials
Sector Strength69
IndustryCorporate Services
Share Statistics
EPS (TTM)-1.15
Shares Outstanding2,731,185
10 Day Avg. Volume4,407
30 Day Avg. Volume3,116
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)5.50
P/FCF Ratio5.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Hudson Global Business Overview & Revenue Model
Company DescriptionHudson Global, Inc. is a talent solutions company, which provides specialized professional-level recruitment and related talent solutions worldwide. The firm operates through its segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Its services include permanent recruitment, contracting, recruitment process outsourcing and talent management solutions. The company was founded in 1987 and is headquartered in New York, NY.
How the Company Makes MoneyHudson Global makes money primarily through its recruitment process outsourcing (RPO) services and professional staffing solutions. The company generates revenue by charging clients for the recruitment and placement of candidates, as well as for managing their entire recruitment process. This can include sourcing, screening, interviewing, and onboarding candidates. Additionally, Hudson Global may earn fees based on the successful placement of candidates and the length of their employment with the client's organization. The company may also have strategic partnerships with various businesses to expand its service offerings and client base, thereby contributing to its earnings.
Hudson Global Financial Statement Overview
Summary
Hudson Global's financial health presents challenges with declining revenues and profitability issues. The income statement reveals negative revenue growth and operating margins, with a net loss indicating significant operational inefficiencies. The balance sheet is strong with a high equity ratio and low debt, but negative return on equity suggests poor utilization of assets. Cash flow issues persist, with negative free cash flow growth and insufficient cash generation relative to net income.Income Statement
Hudson Global's income statement reveals a concerning decline in revenues from $200.9M in 2022 to $140.4M TTM, marking a substantial negative revenue growth. The gross profit margin TTM is 48.4%, which is reasonable but lower than previous periods. The company has negative EBIT and EBITDA margins at -3.5% and -2.5% TTM, indicating operational challenges and inefficiencies. Net profit margin is also negative at -2.5% TTM, which highlights profitability issues.45
Neutral
Balance Sheet
The balance sheet shows a solid equity ratio of 75.1% TTM, reflecting a strong capital structure. The debt-to-equity ratio remains low at 0.03, suggesting minimal leverage and a conservative approach to debt. However, return on equity TTM is negative at -8.0%, indicating the company is not effectively utilizing its equity base to generate profits.60
Neutral
Cash Flow
Cash flow analysis indicates a negative free cash flow growth with TTM free cash flow at -$1.53M compared to $0.22M in the previous year. The operating cash flow to net income ratio is negative, reflecting challenges in cash generation relative to accounting profits. The free cash flow to net income ratio is also negative, signaling issues with cash conversion.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 140.43M | 161.34M | 200.92M | 169.21M | 101.45M | 93.81M | Gross Profit |
| 68.02M | 80.27M | 99.21M | 68.16M | 39.08M | 43.57M | EBIT |
| -4.95M | 1.38M | 9.34M | 4.39M | -2.65M | -1.66M | EBITDA |
| -3.52M | 2.85M | 10.71M | 4.99M | -2.47M | -1.41M | Net Income Common Stockholders |
| -3.45M | 2.20M | 7.13M | 3.23M | -1.24M | -842.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 40.56M | 22.61M | 27.12M | 21.71M | 25.81M | 31.19M | Total Assets |
| 53.18M | 60.96M | 67.94M | 61.24M | 45.39M | 46.70M | Total Debt |
| 0.00 | 1.43M | 1.94M | 1.73M | 214.00K | 406.00K | Net Debt |
| -40.56M | -21.18M | -25.19M | -19.98M | -25.59M | -30.78M | Total Liabilities |
| 12.69M | 12.40M | 22.15M | 21.93M | 11.11M | 10.67M | Stockholders Equity |
| 40.49M | 48.55M | 45.79M | 39.32M | 34.28M | 36.03M |
| Cash Flow | Free Cash Flow | ||||
| -1.53M | 216.00K | 8.95M | 2.22M | -1.45M | -4.91M | Operating Cash Flow |
| -1.47M | 315.00K | 9.45M | 2.51M | -1.43M | -4.83M | Investing Cash Flow |
| -1.04M | -2.15M | -1.33M | -6.30M | -4.02M | -84.00K | Financing Cash Flow |
| -3.19M | -2.45M | -2.04M | -4.00K | -927.00K | -4.59M |
Hudson Global Technical Analysis
Negative
10.22
Price Trends
12.13
Negative
13.42
Negative
15.11
Negative
Market Momentum
-0.62
Positive
29.01
Positive
6.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSON, the sentiment is Negative. The current price of 10.22 is below the 20-day moving average (MA) of 11.01, below the 50-day MA of 12.13, and below the 200-day MA of 15.11, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 29.01 is Positive, neither overbought nor oversold. The STOCH value of 6.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSON.
Hudson Global Risk Analysis
Hudson Global disclosed 25 risk factors in its most recent earnings report. Hudson Global reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hudson Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.34B | 37.42 | 95.48% | 2.64% | 1.47% | -45.91% | |
74 Outperform | $3.47B | 14.47 | 13.96% | 2.14% | -3.27% | 63.04% | |
62 Neutral | $8.17B | 12.83 | 0.26% | 3.07% | 3.83% | -16.44% | |
60 Neutral | $5.53B | 22.17 | 16.96% | 4.03% | -9.33% | -37.06% | |
58 Neutral | $2.80B | 20.37 | 6.67% | 5.14% | -5.61% | 77.92% | |
56 Neutral | $462.45M | 11.43 | -0.05% | 2.27% | -10.42% | -101.51% | |
48 Neutral | $27.58M | ― | -7.71% | ― | -17.86% | -329.78% |
* Industrials Sector Average
Performance Comparison
HSON
Hudson Global
10.22
-5.04
-33.03%
NSP
Insperity
87.68
-8.65
-8.98%
KELYA
Kelly Services
13.00
-10.41
-44.47%
KFY
Korn Ferry
66.47
4.61
7.45%
MAN
ManpowerGroup
58.62
-10.51
-15.20%
RHI
Robert Half
53.06
-23.11
-30.34%
Hudson Global Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: -29.08% | Next Earnings Date: Mar 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with notable achievements like strategic hires, regional revenue growth in the Americas and EMEA, and improved cash flow. However, these were offset by significant challenges including revenue declines, a net loss, and underperformance in the Asia Pacific region.Highlights
Americas and EMEA Revenue Growth
Revenue for the Americas business increased 6% and for the EMEA business increased 7% year-over-year in constant currency. Adjusted net revenue for EMEA increased 5%.
Cash Flow Improvement
The company generated $1.3 million in cash flow from operations during the third quarter of 2024 compared to a $0.7 million cash outflow from operations in the third quarter of 2023.
Strategic Hires and Recognition
Multiple strategic hires were made to enhance geographical reach and service offerings. Hudson RPO was recognized for the 16th consecutive year in HRO Today's magazine's Baker's Dozen list of top enterprise RPO providers.
Share Repurchases
The company continued share repurchase activity, buying back $2.5 million worth of stock this year.
Lowlights
Revenue and Profit Decline
Q3 2024 revenue was $36.9 million, down 8% year-over-year in constant currency. Adjusted net revenue was $18.6 million, down 5% year-over-year. Adjusted EBITDA for the quarter was $0.8 million, down from $2 million a year ago.
Net Loss Reported
A net loss of $0.8 million or $0.28 per diluted share was reported compared to net income of $0.5 million or $0.17 per diluted share in the same period last year.
Asia Pacific Revenue Decline
Revenue for the Asia Pacific business decreased 15%, and adjusted net revenue decreased 11% year-over-year in constant currency.
New Logo Sales Challenges
New logo sales continued to be a disappointment, with potential clients delaying or shrinking their scope.
Company Guidance
During the Q3 2024 earnings call for Hudson Global, the company reported revenue of $36.9 million, a decline of 8% year-over-year in constant currency, with adjusted net revenue at $18.6 million, down 5% from the previous year. Adjusted EBITDA for the quarter was $0.8 million, a significant decrease from $2 million in the same quarter last year. Additionally, the company reported a net loss of $0.8 million, or $0.28 per diluted share, compared to a net income of $0.5 million, or $0.17 per diluted share, in Q3 2023. Regionally, the Americas saw a 6% increase in revenue, while Asia Pacific experienced a 15% decline. EMEA revenue grew by 7%. The company ended the quarter with $16.5 million in cash and generated $1.3 million in cash flow from operations, reversing a $0.7 million outflow in the previous year. The balance sheet reflected $5.8 million in goodwill and $2.8 million in net amortizable intangible assets. Despite challenges in hiring volumes, particularly in financial services in Asia-Pacific, Hudson Global continues to expand its geographical reach and service offerings, with strategic hires and a focus on long-term growth.Hudson Global Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Hudson Global Announces 2025 Executive Incentive Plans
Neutral
Jan 29, 2025
On January 24, 2025, Hudson Global, Inc.’s Compensation Committee approved the 2025 CEO/CFO Incentive Compensation Plan for CEO Jeffrey E. Eberwein and CFO Matthew K. Diamond, offering equity and cash incentives based on achieving corporate objectives such as net revenue and EBITDA targets. The plan includes a target cash opportunity of $100,000 each, with restricted stock unit opportunities set at $470,000 and $150,000 respectively. Additionally, the Committee set revenue and EBITDA targets for Jake Zabkowicz, Global CEO of Hudson RPO Holdings LLC, a subsidiary, with incentives contingent on meeting these goals, and also approved a broader 2025 Incentive Compensation Program for other executives to align with group and division objectives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.