HERITAGE GLOBAL INC (HGBL)
US42727E1038 - Common Stock
Taking everything into account, HGBL scores 6 out of 10 in our fundamental rating. HGBL was compared to 218 industry peers in the Capital Markets industry. HGBL has an excellent profitability rating, but there are some minor concerns on its financial health. HGBL may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, HGBL could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
HGBL had positive earnings in the past year.
HGBL had a positive operating cash flow in the past year.
HGBL had positive earnings in each of the past 5 years.
HGBL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HGBL (12.41%) is better than 92.09% of its industry peers.
Looking at the Return On Equity, with a value of 16.97%, HGBL belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.04%, HGBL belongs to the best of the industry, outperforming 89.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HGBL is above the industry average of 6.96%.
The last Return On Invested Capital (13.04%) for HGBL is above the 3 year average (10.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 16.97% | ||
| ROIC | 13.04% |
ROA(3y)14.66%
ROA(5y)16.69%
ROE(3y)20.61%
ROE(5y)25.4%
ROIC(3y)10.2%
ROIC(5y)10.56%
1.3 Margins
HGBL's Profit Margin of 20.30% is in line compared to the rest of the industry. HGBL outperforms 57.21% of its industry peers.
HGBL's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 19.14%, HGBL perfoms like the industry average, outperforming 40.93% of the companies in the same industry.
HGBL's Operating Margin has improved in the last couple of years.
HGBL has a better Gross Margin (67.43%) than 66.51% of its industry peers.
In the last couple of years the Gross Margin of HGBL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.14% | ||
| PM (TTM) | 20.3% | ||
| GM | 67.43% |
OM growth 3Y36.39%
OM growth 5Y4.9%
PM growth 3Y-17.65%
PM growth 5Y5.39%
GM growth 3Y0.28%
GM growth 5Y-4.53%
2. Health
2.1 Basic Checks
Compared to 1 year ago, HGBL has more shares outstanding
Compared to 5 years ago, HGBL has more shares outstanding
The debt/assets ratio for HGBL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.83, we must say that HGBL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.83, HGBL is doing worse than 92.56% of the companies in the same industry.
HGBL has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
HGBL has a Debt to FCF ratio of 0.46. This is amongst the best in the industry. HGBL outperforms 89.77% of its industry peers.
HGBL has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
HGBL's Debt to Equity ratio of 0.07 is amongst the best of the industry. HGBL outperforms 82.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | -0.83 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.99 indicates that HGBL should not have too much problems paying its short term obligations.
HGBL's Current ratio of 1.99 is fine compared to the rest of the industry. HGBL outperforms 68.37% of its industry peers.
A Quick Ratio of 1.76 indicates that HGBL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.76, HGBL is in the better half of the industry, outperforming 68.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
HGBL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
HGBL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.62% yearly.
HGBL shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.07%.
The Revenue has been growing by 20.67% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0%
EPS 3Y3.42%
EPS 5Y20.62%
EPS Q2Q%-40%
Revenue 1Y (TTM)29.07%
Revenue growth 3Y32.24%
Revenue growth 5Y20.67%
Sales Q2Q%-33.06%
3.2 Future
The Earnings Per Share is expected to decrease by -5.32% on average over the next years.
The Revenue is expected to grow by 0.91% on average over the next years.
EPS Next Y-25.82%
EPS Next 2Y-5.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-15.28%
Revenue Next 2Y0.91%
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.
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
A Price/Earnings ratio of 5.75 indicates a rather cheap valuation of HGBL.
Based on the Price/Earnings ratio, HGBL is valued cheaper than 90.23% of the companies in the same industry.
HGBL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 5.44 indicates a rather cheap valuation of HGBL.
HGBL's Price/Forward Earnings ratio is rather cheap when compared to the industry. HGBL is cheaper than 95.81% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HGBL to the average of the S&P500 Index (23.82), we can say HGBL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.75 | ||
| Fwd PE | 5.44 |
4.2 Price Multiples
93.95% of the companies in the same industry are more expensive than HGBL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HGBL is valued cheaper than 85.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.31 | ||
| EV/EBITDA | 3.78 |
4.3 Compensation for Growth
HGBL has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HGBL's earnings are expected to decrease with -5.32% in the coming years.
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-5.32%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HGBL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HERITAGE GLOBAL INC
NASDAQ:HGBL (11/21/2024, 8:00:01 PM)
1.61
-0.02 (-1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap60.12M
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.75 | ||
| Fwd PE | 5.44 | ||
| 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)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 16.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.14% | ||
| PM (TTM) | 20.3% | ||
| GM | 67.43% | ||
| 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.76 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y3.42%
EPS 5Y
EPS Q2Q%
EPS Next Y-25.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)29.07%
Revenue growth 3Y32.24%
Revenue growth 5Y
Sales 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