DHI GROUP INC (DHX) Stock Fundamental Analysis
NYSE:DHX - New York Stock Exchange, Inc. - US23331S1006 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DHX. DHX was compared to 71 industry peers in the Interactive Media & Services industry. DHX has a medium profitability rating, but doesn't score so well on its financial health evaluation. DHX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DHX had positive earnings in the past year.
DHX had a positive operating cash flow in the past year.
In multiple years DHX reported negative net income over the last 5 years.
In the past 5 years DHX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DHX (0.11%) is better than 60.56% of its industry peers.
Looking at the Return On Equity, with a value of 0.22%, DHX is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
DHX has a Return On Invested Capital of 3.70%. This is in the better half of the industry: DHX outperforms 69.01% of its industry peers.
DHX had an Average Return On Invested Capital over the past 3 years of 3.66%. This is significantly below the industry average of 11.37%.
The last Return On Invested Capital (3.70%) for DHX is above the 3 year average (3.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.22% | ||
| ROIC | 3.7% |
ROA(3y)1.17%
ROA(5y)-4.47%
ROE(3y)2.47%
ROE(5y)-8.33%
ROIC(3y)3.66%
ROIC(5y)3.04%
1.3 Margins
The Profit Margin of DHX (0.18%) is better than 60.56% of its industry peers.
In the last couple of years the Profit Margin of DHX has declined.
DHX has a Operating Margin of 5.24%. This is in the better half of the industry: DHX outperforms 69.01% of its industry peers.
DHX's Operating Margin has declined in the last couple of years.
DHX has a better Gross Margin (85.74%) than 85.92% of its industry peers.
In the last couple of years the Gross Margin of DHX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.24% | ||
| PM (TTM) | 0.18% | ||
| GM | 85.74% |
OM growth 3Y235.07%
OM growth 5Y-16.43%
PM growth 3YN/A
PM growth 5Y-53.76%
GM growth 3Y-0.64%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
DHX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DHX has more shares outstanding than it did 1 year ago.
DHX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DHX has an improved debt to assets ratio.
2.2 Solvency
DHX has an Altman-Z score of 1.37. This is a bad value and indicates that DHX is not financially healthy and even has some risk of bankruptcy.
DHX has a Altman-Z score (1.37) which is in line with its industry peers.
DHX has a debt to FCF ratio of 4.50. This is a neutral value as DHX would need 4.50 years to pay back of all of its debts.
DHX has a Debt to FCF ratio of 4.50. This is in the better half of the industry: DHX outperforms 61.97% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that DHX is not too dependend on debt financing.
DHX has a Debt to Equity ratio (0.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.4
WACC9.21%
2.3 Liquidity
A Current Ratio of 0.47 indicates that DHX may have some problems paying its short term obligations.
DHX's Current ratio of 0.47 is on the low side compared to the rest of the industry. DHX is outperformed by 85.92% of its industry peers.
DHX has a Quick Ratio of 0.47. This is a bad value and indicates that DHX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DHX (0.47) is worse than 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
DHX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 130.00%, which is quite impressive.
DHX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.16% yearly.
The Revenue has decreased by -6.55% in the past year.
The Revenue has been decreasing by -1.02% on average over the past years.
EPS 1Y (TTM)130%
EPS 3YN/A
EPS 5Y-3.16%
EPS Q2Q%75%
Revenue 1Y (TTM)-6.55%
Revenue growth 3Y5.78%
Revenue growth 5Y-1.02%
Sales Q2Q%-6.71%
3.2 Future
The Earnings Per Share is expected to decrease by -38.31% on average over the next years. This is quite bad
Based on estimates for the next years, DHX will show a decrease in Revenue. The Revenue will decrease by -2.76% on average per year.
EPS Next Y-66.33%
EPS Next 2Y-38.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.97%
Revenue Next 2Y-2.76%
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 decreasing.
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
With a Price/Earnings ratio of 9.35, the valuation of DHX can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of DHX indicates a rather cheap valuation: DHX is cheaper than 87.32% of the companies listed in the same industry.
DHX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 27.76, DHX can be considered very expensive at the moment.
DHX's Price/Forward Earnings is on the same level as the industry average.
DHX is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 27.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DHX is valued cheaper than 91.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DHX indicates a somewhat cheap valuation: DHX is cheaper than 73.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.79 | ||
| EV/EBITDA | 5.25 |
4.3 Compensation for Growth
The decent profitability rating of DHX may justify a higher PE ratio.
DHX's earnings are expected to decrease with -38.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
DHX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.15
-0.11 (-4.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners65.19%
Inst Owner Change-5.53%
Ins Owners16.2%
Ins Owner Change2.89%
Market Cap105.18M
Analysts82.86
Price Target4.97 (131.16%)
Short Float %0.31%
Short Ratio0.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)190.39%
Min EPS beat(2)65.02%
Max EPS beat(2)315.76%
EPS beat(4)4
Avg EPS beat(4)137.13%
Min EPS beat(4)65.02%
Max EPS beat(4)315.76%
EPS beat(8)7
Avg EPS beat(8)114.66%
EPS beat(12)10
Avg EPS beat(12)175.29%
EPS beat(16)10
Avg EPS beat(16)-693.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.95%
Max Revenue beat(2)0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)0.45%
Revenue beat(8)3
Avg Revenue beat(8)-0.35%
Revenue beat(12)7
Avg Revenue beat(12)0.7%
Revenue beat(16)10
Avg Revenue beat(16)1.06%
PT rev (1m)5.41%
PT rev (3m)5.41%
EPS NQ rev (1m)-49.96%
EPS NQ rev (3m)-49.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.91%
Revenue NQ rev (3m)-3.98%
Revenue NY rev (1m)-2.72%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.35 | ||
| Fwd PE | 27.76 | ||
| P/S | 0.74 | ||
| P/FCF | 14.79 | ||
| P/OCF | 5 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.25 |
EPS(TTM)0.23
EY10.7%
EPS(NY)0.08
Fwd EY3.6%
FCF(TTM)0.15
FCFY6.76%
OCF(TTM)0.43
OCFY20.01%
SpS2.9
BVpS2.34
TBVpS-0.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.11% | ||
| ROE | 0.22% | ||
| ROCE | 4.69% | ||
| ROIC | 3.7% | ||
| ROICexc | 3.79% | ||
| ROICexgc | 192.23% | ||
| OM | 5.24% | ||
| PM (TTM) | 0.18% | ||
| GM | 85.74% | ||
| FCFM | 5.01% |
ROA(3y)1.17%
ROA(5y)-4.47%
ROE(3y)2.47%
ROE(5y)-8.33%
ROIC(3y)3.66%
ROIC(5y)3.04%
ROICexc(3y)3.75%
ROICexc(5y)3.13%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.63%
ROCE(5y)3.85%
ROICexcg growth 3Y308.37%
ROICexcg growth 5Y-14.06%
ROICexc growth 3Y255.67%
ROICexc growth 5Y-13.05%
OM growth 3Y235.07%
OM growth 5Y-16.43%
PM growth 3YN/A
PM growth 5Y-53.76%
GM growth 3Y-0.64%
GM growth 5Y-0.76%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 77.52% | ||
| Cap/Sales | 9.82% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 82.83% | ||
| Profit Quality | 2811.46% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.37 |
F-Score6
WACC9.21%
ROIC/WACC0.4
Cap/Depr(3y)100.02%
Cap/Depr(5y)103.51%
Cap/Sales(3y)11.72%
Cap/Sales(5y)11.77%
Profit Quality(3y)1091.74%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)130%
EPS 3YN/A
EPS 5Y-3.16%
EPS Q2Q%75%
EPS Next Y-66.33%
EPS Next 2Y-38.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.55%
Revenue growth 3Y5.78%
Revenue growth 5Y-1.02%
Sales Q2Q%-6.71%
Revenue Next Year-6.97%
Revenue Next 2Y-2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-14.58%
EBIT growth 3Y254.44%
EBIT growth 5Y-17.28%
EBIT Next Year290.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y550.78%
FCF growth 3Y-20.72%
FCF growth 5Y-4.01%
OCF growth 1Y-1.41%
OCF growth 3Y-9.7%
OCF growth 5Y-1.69%