DHI Group (DHX) AI Stock Analysis

• Market Cap: $94.09M
• Dividend Yield: N/A
• Average Volume (3M): 126.97K
• Price to Earnings (P/E): 268.9
• Beta (1Y): 0.56
• Revenue Growth: -7.42%
• EPS Growth: -567.61%
• Country: US
• Employees: 414
• Sector: Technology
• Sector Strength: 77
• Industry: Staffing & Employment Services
• EPS (TTM): -0.21
• Shares Outstanding: 48,751,220
• 10 Day Avg. Volume: 119,460
• 30 Day Avg. Volume: 126,974
• PEG Ratio: -3.93
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.95
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 1.20
• 1Y Price Target: $6.17
• Price Target Upside: 200.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $2.00 ▼(-2.44%Downside)

DHI Group's overall stock score reflects strengths in technical analysis and financial management, particularly in cash flow and cost efficiency. However, significant challenges in profitability, declining revenues, and valuation concerns weigh on the score. The earnings call highlighted strategic initiatives and optimism for future growth, but current uncertainties in the tech hiring environment and specific segment challenges pose risks. Overall, the stock's appeal is mixed, with a need for demonstrable improvements in profitability and revenue growth.

Positive Factors

Cost Management

Results were positively impacted by restructurings that have removed over $20 million of operating costs, coupled with initiatives to improve product offerings and strengthen sales and marketing.

Financial Performance

Q4/24 results were better than expected, with adjusted EBITDA surpassing consensus expectations and generating a strong margin of 26.3%.

Operational Strategy

DHI has aligned its operations around each brand with dedicated leadership and go-to-market strategies for each business segment, driving greater focus and accountability.

Negative Factors

Bookings Decline

Total bookings are unlikely to return to growth throughout the year due to the tough macro environment affecting the Dice segment.

Demand Environment

The demand environment for technology talent acquisition tools remains challenging.

Market Challenges

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

DHI Group Business Overview & Revenue Model

Company Description

DHI Group, Inc. provides data, insights, and employment connections through specialized services for technology professionals in the United States, the United Kingdom, rest of Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and other technology and engineering professionals; and ClearanceJobs, an Internet-based career network, which matches security-cleared professionals with hiring companies searching for employees. It also provides eFinancialCareers, a financial services careers Website for financial services industry professionals from various sectors, including asset management, risk management, investment banking, and information technology. The company serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; consulting firms; and marketing departments of companies. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1991 and is headquartered in Centennial, Colorado.

How the Company Makes Money

DHI Group, Inc. generates revenue primarily through recruitment-related services and offerings. The company's key revenue streams include subscription fees from employers who post job listings and access resume databases on its platforms such as Dice and ClearanceJobs. Additionally, DHI Group offers talent management solutions and insights that allow recruiters to find, assess, and hire specialized professionals efficiently. Significant partnerships with industry leaders and technology providers enhance the company's offerings and expand its reach to a broader audience. By leveraging its extensive databases and industry insights, DHI Group helps businesses connect with qualified candidates while supporting professionals in advancing their careers.

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
24.12M	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
42.62M	46.55M	38.53M	32.10M	36.70M
	Net Debt
38.92M	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: Positive
• Last Price: 2.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 2.05 is above the 20-day moving average (MA) of 1.71, above the 50-day MA of 1.59, and above the 200-day MA of 1.88, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 60.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHX.

DHI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UPWK	82 Outperform	$2.07B	9.44	49.80%	―	7.21%	396.32%
DHX	62 Neutral	$94.09M	268.89	-7.21%	―	-7.42%	-567.61%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%
MHH	61 Neutral	$87.65M	42.64	2.52%	―	3.93%	―
JOB	51 Neutral	$21.43M	―	-70.70%	―	-17.38%	-1165.13%
HSON	50 Neutral	$24.48M	―	-8.66%	―	-9.28%	-244.22%
ZIP	46 Neutral	$504.47M	225.24	-2897.28%	―	-20.95%	-152.29%

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.