DHI Group (DHX) AI Stock Analysis

• Market Cap: $123.83M
• Dividend Yield: N/A
• Average Volume (3M): 120.77K
• Price to Earnings (P/E): 268.9
• Beta (1Y): 0.59
• Revenue Growth: -7.42%
• EPS Growth: -567.61%
• Country: US
• Employees: 414
• Sector: Technology
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): -0.21
• Shares Outstanding: 48,751,220
• 10 Day Avg. Volume: 99,632
• 30 Day Avg. Volume: 120,771
• PEG Ratio: -0.05
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.97
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 2.30
• Enterprise Value/Ebitda: 3.10
• 1Y Price Target: $6.17
• Price Target Upside: 160.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $2.50 ▲(5.49%Upside)

DHI Group's overall stock score is primarily driven by its strong cash flow and cost management, which are crucial in offsetting its current unprofitability and revenue decline. Technical analysis suggests positive momentum, but valuation concerns due to a negative P/E ratio and lack of dividends weigh on the stock. The earnings call provides a mixed outlook with some strengths in specific segments, but overall challenges in revenue and market conditions remain significant.

Positive Factors

Financial Performance

Q4 results were better than expected for sales and adjusted EBITDA, showcasing strong financial performance.

Operational Efficiency

Restructurings have removed over $20 million of operating costs, improving product offerings and strengthening sales and marketing.

Strategic Opportunities

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

Negative Factors

Demand Environment

The demand environment for technology talent acquisition tools remains challenging.

Market Environment

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

Segment Performance

Dice revenue decreased 17.8%, with a 20.4% decrease in bookings due to lower demand on multi-year contract renewals.

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 exhibits strong cash flow and effective cost management, as reflected in a high gross profit margin and cash generation. However, challenges in profitability, evidenced by negative net income and declining revenues, impact overall financial health. Strategic initiatives are needed to drive revenue growth and profitability to enhance shareholder value.

Income Statement

The income statement analysis shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 85.0%, indicating efficient cost management. However, the net profit margin is negative at -5.5%, reflecting challenges with profitability. Revenue has decreased by 2.6% from the previous year, highlighting a need for growth strategies. The negative EBIT margin of -3.3% suggests difficulties in covering operational costs, while the EBITDA margin of 6.4% indicates some level of operational efficiency.

Balance Sheet

The balance sheet presents a stable equity position with a debt-to-equity ratio of 0.42, suggesting reasonable leverage. The return on equity (ROE) is negative at -7.3%, indicating a loss on shareholder investments. The equity ratio is 49.0%, showing a balanced mix of equity and liabilities financing the assets. Overall, the company has managed its debt well but needs to improve profitability to enhance ROE.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 34.4%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is -2.8, indicating that cash generation exceeds net income, a positive sign of cash flow strength. However, the free cash flow to net income ratio of -1.3 suggests that while cash flow is strong, profitability remains a concern. The company should focus on converting cash flow strength into net income growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
138.20M	141.93M	151.88M	149.68M	119.90M	111.17M
	Gross Profit
117.48M	121.69M	132.09M	132.07M	104.81M	96.88M
	EBIT
-4.53M	6.33M	6.29M	5.56M	-1.75M	-32.39M
	EBITDA
8.91M	24.12M	24.02M	20.99M	15.98M	-24.13M
	Net Income Common Stockholders
-7.59M	253.00K	3.49M	4.18M	-29.74M	-30.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.65M	3.70M	4.21M	3.01M	1.54M	4.54M
	Total Assets
212.07M	221.37M	225.20M	226.70M	221.58M	240.99M
	Total Debt
43.21M	42.62M	46.55M	38.53M	32.10M	31.03M
	Net Debt
40.55M	38.92M	42.34M	35.53M	30.56M	26.49M
	Total Liabilities
108.17M	107.05M	117.66M	120.47M	105.22M	113.42M
	Stockholders Equity
103.90M	114.33M	107.54M	106.24M	116.36M	127.57M
Cash Flow		Free Cash Flow
9.56M	7.11M	1.09M	18.06M	14.27M	2.58M
	Operating Cash Flow
21.21M	21.05M	21.34M	36.03M	28.58M	18.68M
	Investing Cash Flow
-11.65M	-13.93M	-15.31M	-17.66M	-19.30M	-15.90M
	Financing Cash Flow
-10.14M	-7.62M	-4.83M	-16.91M	-15.39M	-542.00K

DHI Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.37 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 1.85, and above the 200-day MA of 1.92, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 59.36 is Neutral, neither overbought nor oversold. The STOCH value of 55.43 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	78 Outperform	$1.81B	8.23	49.80%	―	7.21%	396.32%
DHX	63 Neutral	$123.83M	268.89	-7.21%	―	-7.42%	-567.61%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
MHH	61 Neutral	$81.18M	40.18	2.52%	―	3.93%	―
HSON	50 Neutral	$23.27M	―	-8.66%	―	-9.28%	-244.22%
JOB	48 Neutral	$19.69M	―	-70.70%	―	-17.38%	-1165.13%
ZIP	43 Neutral	$514.68M	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.