DHI Group (DHX) AI Stock Analysis

• Market Cap: $68.92M
• Dividend Yield: N/A
• Average Volume (3M): 150.82K
• Price to Earnings (P/E): 333.3
• Beta (1Y): 0.74
• Revenue Growth: -6.55%
• EPS Growth: -93.52%
• Country: US
• Employees: 414
• Sector: Technology
• Sector Strength: 45
• Industry: Staffing & Employment Services
• EPS (TTM): <0.01
• Shares Outstanding: 45,946,400
• 10 Day Avg. Volume: 152,525
• 30 Day Avg. Volume: 150,825
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.51
• Price to Cash Flow (P/CF): 4.10
• P/FCF Ratio: 8.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.67
• Price Target Upside: 215.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

DHI Group's overall stock score reflects moderate financial health with strong gross margins but significant challenges in profitability and revenue growth. The bearish technical indicators and high P/E ratio suggest potential overvaluation and limited market confidence. While leadership changes and a recovering tech hiring market offer some optimism, substantial improvement is needed in revenue performance and profitability.

Positive Factors

Company Restructuring

The new structure will enhance profitability and unlock greater long-term strategic opportunities for each brand.

Demand for Tech Hiring

DHI is starting to see increased demand for technologist hiring with improved renewal rates for both Dice and ClearanceJobs.

Financial Performance

Q4/24 results were better than expected, with adjusted EBITDA surpassing consensus expectations.

Negative Factors

Bookings Decline

Reflecting a challenging environment, total bookings decreased 7% to $28.9 million.

Performance Challenges

The Dice business continues to struggle with softness in performance, attributed to a down part of the business cycle.

Revenue Decline

DHI reported Q3/24 results that included a total revenue decrease of 6% to $35.3 million with an 8% decline in adjusted EBITDA to $8.6 million.

DHI Group Business Overview & Revenue Model

Company Description

DHI Group, Inc. is a provider of data, insights, and employment connections through its specialized career websites and services. Operating primarily in the United States, DHI Group focuses on technology-focused career marketplaces that help professionals find relevant employment opportunities, and employers source and hire top talent. Its core product offerings include specialized recruitment services and platforms that cater to various technology sectors.

How the Company Makes Money

DHI Group generates revenue primarily through its recruitment-related services. The company operates niche career websites, such as Dice and ClearanceJobs, which connect technology professionals with potential employers. A significant portion of its revenue comes from employers and recruiters who pay to post job listings and access the company's extensive database of qualified candidates. Additionally, DHI Group earns money from advertising services on its platforms, where companies can promote their brand to a targeted audience of tech professionals. The company also leverages partnerships with educational institutions and professional organizations to enhance its reach and the value of its offerings. Subscription services for access to premium features and insights provide another revenue stream, contributing to its overall financial performance.

DHI Group Financial Statement Overview

Summary

DHI Group shows moderate financial health with strong gross margins but challenges in profitability and revenue growth. The balance sheet is stable with manageable debt levels. Cash flow generation is improving but remains a concern relative to net income. The company needs to focus on improving net profitability and sustaining positive cash flow growth.

Income Statement

The income statement shows moderate performance with a gross profit margin of 82.60% for TTM, indicating strong cost control relative to revenue. However, the net profit margin is low at 0.18%, reflecting challenges in profitability. Revenue growth is negative at -6.56% compared to the previous period, which is a concern. The EBIT margin is 4.46% and EBITDA margin is 14.05%, indicating reasonable operating efficiency but potential issues with higher non-operating expenses or taxes affecting net income.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.37, indicating manageable leverage. The return on equity (ROE) is low at 0.22%, suggesting limited effectiveness in generating profits from shareholders' equity. The equity ratio is 51.64%, showing a healthy proportion of equity financing, which provides financial stability.

Cash Flow

The cash flow statement reveals a decrease in free cash flow, with a growth rate of 551.20%, indicating improvement over the previous year but still relatively low. The operating cash flow to net income ratio is high at 83.20, showing strong cash earnings. However, the free cash flow to net income ratio is 28.11, indicating limited free cash flow relative to net earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
141.93M	151.88M	149.68M	119.90M	136.88M
	Gross Profit
121.69M	132.09M	132.07M	104.81M	119.83M
	EBIT
6.33M	6.29M	5.56M	357.00K	9.22M
	EBITDA
6.33M	24.02M	20.99M	15.98M	-24.13M
	Net Income Common Stockholders
253.00K	3.49M	4.18M	-402.00K	-30.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.70M	4.21M	3.01M	1.54M	7.64M
	Total Assets
221.37M	225.20M	226.70M	221.58M	240.99M
	Total Debt
10.62M	46.55M	38.53M	32.10M	36.70M
	Net Debt
6.92M	42.34M	35.53M	30.56M	29.06M
	Total Liabilities
107.05M	117.66M	120.47M	105.22M	113.42M
	Stockholders Equity
114.33M	107.54M	106.24M	116.36M	127.57M
Cash Flow		Free Cash Flow
7.11M	1.09M	18.06M	14.27M	2.58M
	Operating Cash Flow
21.05M	21.34M	36.03M	28.58M	18.68M
	Investing Cash Flow
-13.93M	-15.31M	-17.66M	-19.30M	-15.90M
	Financing Cash Flow
-7.62M	-4.83M	-16.91M	-15.39M	-542.00K

DHI Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHX, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.98, and below the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DHX.

DHI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPWK	71 Outperform	$1.73B	8.31	45.08%	―	11.64%	363.49%
MHH	63 Neutral	$90.27M	27.11	4.03%	―	-1.07%	―
Sector *	58 Neutral	$10.03B	10.00	-6.85%	3.09%	7.49%	-11.58%
DHX	53 Neutral	$68.92M	333.33	0.23%	―	-6.55%	-93.52%
JOB	45 Neutral	$19.88M	―	-24.47%	―	-21.17%	-441.21%
HSON	45 Neutral	$25.86M	―	-10.72%	―	-13.19%	-320.59%
ZIP	44 Neutral	$542.83M	225.24	-117.95%	―	-26.59%	-126.85%

DHI Group Corporate Events

DHI Group Appoints New CFO and CLO

On January 28, 2025, DHI Group, Inc. appointed Gregory Schippers as Chief Financial Officer and E. Jack Connolly as Chief Legal Officer. Schippers, who joined the company in 2014 and served as Interim CFO since November 2024, will oversee financial operations, while Connolly, who joined in 2018 and served as General Counsel since May 2023, will manage legal affairs. Their appointments aim to strengthen the company’s leadership and align legal and financial strategies with its operational goals.