DHI GROUP INC (DHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DHX - US23331S1006 - Common Stock
1.81 USD
0 (0%)
Taking everything into account, DHX scores 4 out of 10 in our fundamental rating. DHX was compared to 70 industry peers in the Interactive Media & Services industry. While DHX is still in line with the averages on profitability rating, there are concerns on its financial health. DHX has a bad growth rate and is valued cheaply.
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.
- Each year in the past 5 years DHX had a positive operating cash flow.
1.2 Ratios
- DHX's Return On Assets of -6.98% is on the low side compared to the rest of the industry. DHX is outperformed by 62.86% of its industry peers.
- With a Return On Equity value of -13.82%, DHX perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.12%, DHX is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
- DHX had an Average Return On Invested Capital over the past 3 years of 3.66%. This is significantly below the industry average of 13.70%.
- The last Return On Invested Capital (6.12%) for DHX is above the 3 year average (3.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.98% | ||
| ROE | -13.82% | ||
| ROIC | 6.12% |
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
- In the last couple of years the Profit Margin of DHX has declined.
- DHX's Operating Margin of 8.06% is fine compared to the rest of the industry. DHX outperforms 65.71% of its industry peers.
- In the last couple of years the Operating Margin of DHX has declined.
- With an excellent Gross Margin value of 84.64%, DHX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- 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 | 8.06% | ||
| PM (TTM) | N/A | ||
| GM | 84.64% |
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.
- The number of shares outstanding for DHX has been increased compared to 1 year ago.
- Compared to 5 years ago, DHX has less shares outstanding
- Compared to 1 year ago, DHX has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.33, we must say that DHX is in the distress zone and has some risk of bankruptcy.
- DHX has a Altman-Z score (1.33) which is in line with its industry peers.
- The Debt to FCF ratio of DHX is 3.10, which is a good value as it means it would take DHX, 3.10 years of fcf income to pay off all of its debts.
- DHX has a better Debt to FCF ratio (3.10) than 71.43% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that DHX is not too dependend on debt financing.
- DHX has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: DHX outperforms 44.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.1 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.73
WACC8.39%
2.3 Liquidity
- A Current Ratio of 0.43 indicates that DHX may have some problems paying its short term obligations.
- DHX has a Current ratio of 0.43. This is amonst the worse of the industry: DHX underperforms 90.00% of its industry peers.
- DHX has a Quick Ratio of 0.43. This is a bad value and indicates that DHX is not financially healthy enough and could expect problems in meeting its short term obligations.
- DHX's Quick ratio of 0.43 is on the low side compared to the rest of the industry. DHX is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
- DHX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.00%, which is quite impressive.
- The Earnings Per Share has been decreasing by -3.16% on average over the past years.
- The Revenue has decreased by -9.13% in the past year.
- Measured over the past years, DHX shows a decrease in Revenue. The Revenue has been decreasing by -1.02% on average per year.
EPS 1Y (TTM)35%
EPS 3YN/A
EPS 5Y-3.16%
EPS Q2Q%80%
Revenue 1Y (TTM)-9.13%
Revenue growth 3Y5.78%
Revenue growth 5Y-1.02%
Sales Q2Q%-8.96%
3.2 Future
- DHX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.13% yearly.
- The Revenue is expected to decrease by -3.10% on average over the next years.
EPS Next Y18.57%
EPS Next 2Y-9.46%
EPS Next 3Y7.13%
EPS Next 5YN/A
Revenue Next Year-10.33%
Revenue Next 2Y-8.19%
Revenue Next 3Y-3.1%
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 6.70, which indicates a rather cheap valuation of DHX.
- Compared to the rest of the industry, the Price/Earnings ratio of DHX indicates a rather cheap valuation: DHX is cheaper than 88.57% 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 28.60.
- With a Price/Forward Earnings ratio of 9.60, the valuation of DHX can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, DHX is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
- DHX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.7 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DHX is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
- 82.86% of the companies in the same industry are more expensive than DHX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 4.32 |
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.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y-9.46%
EPS Next 3Y7.13%
5. Dividend
5.1 Amount
- No dividends for DHX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DHI GROUP INC / DHX FAQ
What is the ChartMill fundamental rating of DHI GROUP INC (DHX) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DHX.
What is the valuation status of DHI GROUP INC (DHX) stock?
ChartMill assigns a valuation rating of 8 / 10 to DHI GROUP INC (DHX). This can be considered as Undervalued.
How profitable is DHI GROUP INC (DHX) stock?
DHI GROUP INC (DHX) has a profitability rating of 4 / 10.
What are the PE and PB ratios of DHI GROUP INC (DHX) stock?
The Price/Earnings (PE) ratio for DHI GROUP INC (DHX) is 6.7 and the Price/Book (PB) ratio is 0.88.
What is the financial health of DHI GROUP INC (DHX) stock?
The financial health rating of DHI GROUP INC (DHX) is 3 / 10.