HUDSON TECHNOLOGIES INC (HDSN) Stock Fundamental Analysis
NASDAQ:HDSN - Nasdaq - US4441441098 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HDSN. HDSN was compared to 49 industry peers in the Trading Companies & Distributors industry. While HDSN has a great health rating, its profitability is only average at the moment. HDSN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HDSN was profitable.
In the past year HDSN had a positive cash flow from operations.
Of the past 5 years HDSN 4 years were profitable.
Of the past 5 years HDSN 4 years had a positive operating cash flow.
1.2 Ratios
HDSN has a Return On Assets of 5.71%. This is in the better half of the industry: HDSN outperforms 63.27% of its industry peers.
Looking at the Return On Equity, with a value of 7.12%, HDSN is doing worse than 61.22% of the companies in the same industry.
With a Return On Invested Capital value of 5.79%, HDSN perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HDSN is significantly above the industry average of 9.84%.
The last Return On Invested Capital (5.79%) for HDSN is well below the 3 year average (26.20%), which needs to be investigated, but indicates that HDSN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 7.12% | ||
| ROIC | 5.79% |
ROA(3y)21.25%
ROA(5y)15.1%
ROE(3y)30.7%
ROE(5y)24.97%
ROIC(3y)26.2%
ROIC(5y)20.28%
1.3 Margins
HDSN has a better Profit Margin (7.74%) than 79.59% of its industry peers.
In the last couple of years the Profit Margin of HDSN has declined.
HDSN's Operating Margin of 8.63% is fine compared to the rest of the industry. HDSN outperforms 63.27% of its industry peers.
In the last couple of years the Operating Margin of HDSN has declined.
With a Gross Margin value of 24.80%, HDSN is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of HDSN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.63% | ||
| PM (TTM) | 7.74% | ||
| GM | 24.8% |
OM growth 3Y-17.43%
OM growth 5YN/A
PM growth 3Y-15.02%
PM growth 5YN/A
GM growth 3Y-9.36%
GM growth 5Y21.17%
2. Health
2.1 Basic Checks
HDSN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HDSN has less shares outstanding
Compared to 5 years ago, HDSN has more shares outstanding
HDSN 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
An Altman-Z score of 5.58 indicates that HDSN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.58, HDSN belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
HDSN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.58 |
ROIC/WACC0.57
WACC10.11%
2.3 Liquidity
HDSN has a Current Ratio of 3.84. This indicates that HDSN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.84, HDSN belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
A Quick Ratio of 2.35 indicates that HDSN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.35, HDSN belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.84 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The earnings per share for HDSN have decreased strongly by -64.08% in the last year.
The earnings per share for HDSN have been decreasing by -10.44% on average. This is quite bad
Looking at the last year, HDSN shows a very negative growth in Revenue. The Revenue has decreased by -18.01% in the last year.
Measured over the past years, HDSN shows a small growth in Revenue. The Revenue has been growing by 7.90% on average per year.
EPS 1Y (TTM)-64.08%
EPS 3Y-10.44%
EPS 5YN/A
EPS Q2Q%-70%
Revenue 1Y (TTM)-18.01%
Revenue growth 3Y7.16%
Revenue growth 5Y7.9%
Sales Q2Q%-15.18%
3.2 Future
The Earnings Per Share is expected to grow by 7.52% on average over the next years.
Based on estimates for the next years, HDSN will show a small growth in Revenue. The Revenue will grow by 2.44% on average per year.
EPS Next Y-20.7%
EPS Next 2Y7.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.78%
Revenue Next 2Y2.44%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HDSN is valuated rather expensively with a Price/Earnings ratio of 21.95.
The rest of the industry has a similar Price/Earnings ratio as HDSN.
HDSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.77, which indicates a correct valuation of HDSN.
73.47% of the companies in the same industry are more expensive than HDSN, based on the Price/Forward Earnings ratio.
HDSN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HDSN is valued a bit cheaper than the industry average as 67.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HDSN is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.49 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HDSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.12
+0.1 (+1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners79.98%
Inst Owner Change3.73%
Ins Owners12.47%
Ins Owner Change0.19%
Market Cap353.06M
Analysts76
Price Target7.84 (-3.45%)
Short Float %3.06%
Short Ratio2.21
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)1
Avg EPS beat(2)-235.29%
Min EPS beat(2)-488.23%
Max EPS beat(2)17.65%
EPS beat(4)2
Avg EPS beat(4)-121.9%
Min EPS beat(4)-488.23%
Max EPS beat(4)17.65%
EPS beat(8)5
Avg EPS beat(8)-58.92%
EPS beat(12)9
Avg EPS beat(12)-13.17%
EPS beat(16)13
Avg EPS beat(16)70.12%
Revenue beat(2)1
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-10.52%
Max Revenue beat(2)3.87%
Revenue beat(4)1
Avg Revenue beat(4)-5.39%
Min Revenue beat(4)-10.52%
Max Revenue beat(4)3.87%
Revenue beat(8)3
Avg Revenue beat(8)-3.12%
Revenue beat(12)6
Avg Revenue beat(12)0.52%
Revenue beat(16)9
Avg Revenue beat(16)6.78%
PT rev (1m)17.14%
PT rev (3m)17.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)-3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.95 | ||
| Fwd PE | 13.77 | ||
| P/S | 1.55 | ||
| P/FCF | 3.49 | ||
| P/OCF | 3.3 | ||
| P/B | 1.43 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)0.37
EY4.56%
EPS(NY)0.59
Fwd EY7.26%
FCF(TTM)2.33
FCFY28.65%
OCF(TTM)2.46
OCFY30.28%
SpS5.23
BVpS5.68
TBVpS3.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 7.12% | ||
| ROCE | 7.67% | ||
| ROIC | 5.79% | ||
| ROICexc | 8.48% | ||
| ROICexgc | 14.96% | ||
| OM | 8.63% | ||
| PM (TTM) | 7.74% | ||
| GM | 24.8% | ||
| FCFM | 44.52% |
ROA(3y)21.25%
ROA(5y)15.1%
ROE(3y)30.7%
ROE(5y)24.97%
ROIC(3y)26.2%
ROIC(5y)20.28%
ROICexc(3y)28.13%
ROICexc(5y)21.53%
ROICexgc(3y)41.04%
ROICexgc(5y)33.11%
ROCE(3y)34.71%
ROCE(5y)27.37%
ROICexcg growth 3Y-15.43%
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.17%
ROICexc growth 5YN/A
OM growth 3Y-17.43%
OM growth 5YN/A
PM growth 3Y-15.02%
PM growth 5YN/A
GM growth 3Y-9.36%
GM growth 5Y21.17%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 87.91% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 28.61 | ||
| Cash Conversion | 408.92% | ||
| Profit Quality | 575.23% | ||
| Current Ratio | 3.84 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 5.58 |
F-Score5
WACC10.11%
ROIC/WACC0.57
Cap/Depr(3y)68.73%
Cap/Depr(5y)52.28%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.32%
Profit Quality(3y)172.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.08%
EPS 3Y-10.44%
EPS 5YN/A
EPS Q2Q%-70%
EPS Next Y-20.7%
EPS Next 2Y7.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-18.01%
Revenue growth 3Y7.16%
Revenue growth 5Y7.9%
Sales Q2Q%-15.18%
Revenue Next Year-3.78%
Revenue Next 2Y2.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-71.31%
EBIT growth 3Y-11.52%
EBIT growth 5YN/A
EBIT Next Year-9.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y57.11%
FCF growth 3YN/A
FCF growth 5Y21.4%
OCF growth 1Y56.24%
OCF growth 3YN/A
OCF growth 5Y22.11%