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DHI Group Inc (DHX)
NYSE:DHX

DHI Group (DHX) AI Stock Analysis

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DHI Group

(NYSE:DHX)

Rating:62Neutral
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 (DHX) vs. SPDR S&P 500 ETF (SPY)

DHI Group Business Overview & Revenue Model

Company DescriptionDHI 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 MoneyDHI 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 50.74%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant strengths in cost management, profitability of ClearanceJobs, and positive tech job growth indicators. However, these were offset by challenges such as overall revenue decline, difficulties in the Dice segment, and uncertainties affecting tech hiring. The company's strategic innovations and share repurchase program indicate confidence, but the tech hiring environment and external uncertainties pose challenges.
Q1-2025 Updates
Positive Updates
ClearanceJobs Strong Profitability
ClearanceJobs delivered adjusted EBITDA of $5.7 million, with an adjusted EBITDA margin of 43%. Despite a minor 1% decline in bookings, larger CJ customers remain confident.
AI and Tech Job Growth Indicators
There is a 16% increase in new tech job postings year-over-year, and tech recruiter job postings increased by 36%, signaling a potential rise in tech hiring demand.
Successful Cost Management
DHI Group removed over $20 million of operating costs through three restructurings since May 2023, enhancing profitability and positioning for profitable growth.
Innovation and Recognition
ClearanceJobs received recognition from the White House as a vital partner in national cybersecurity, and Dice launched new product features and improvements.
Share Repurchase Program
DHI Group announced a $5 million share repurchase program, reflecting confidence in the company's strength and resilience.
Negative Updates
Overall Revenue Decline
Total revenue decreased by 10% year-over-year, with total bookings down by 14%.
Dice Segment Challenges
Dice faced a challenging environment with bookings down 20% year-over-year, primarily due to adjusted consumption in a lower demand environment.
Impact of Doge-Related Uncertainty
Doge-related uncertainty affected ClearanceJobs' new bookings and renewals, particularly impacting smaller military contractors and delaying new business relationships.
Goodwill Impairment and Restructuring Charges
The quarter was impacted by a $7.4 million Dice goodwill impairment charge and a $2.3 million restructuring charge.
Tech Hiring Environment
The tech hiring environment remains uncertain, with hiring levels still only around 70% of normal levels compared to 2019.
Company Guidance
During the call, DHI Group provided guidance for fiscal year 2025, projecting full-year revenue between $131 million and $135 million. For the second quarter, the company expects revenue to be between $32 million and $33 million. The company aims for an adjusted EBITDA margin of 24% for the full year, with a strong emphasis on free cash flow conversion. DHI Group has also implemented a $5 million share repurchase program and achieved a leverage ratio of 1x. The company highlighted its strategic focus on two brands, ClearanceJobs and Dice, with ClearanceJobs maintaining a robust adjusted EBITDA margin of 43% and Dice at 18%. Despite a 10% decline in total revenue in the first quarter, DHI Group reported company-wide adjusted EBITDA of $7 million, representing a margin of 22%. The tech hiring environment remains uncertain, but the company remains optimistic about a return to profitable growth as hiring demand normalizes.

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
68
Positive
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
72
Positive
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
60
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
141.93M151.88M149.68M119.90M136.88M
Gross Profit
121.69M132.09M132.07M104.81M119.83M
EBIT
6.33M6.29M5.56M357.00K9.22M
EBITDA
24.12M24.02M20.99M15.98M-24.13M
Net Income Common Stockholders
253.00K3.49M4.18M-402.00K-30.02M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.70M4.21M3.01M1.54M7.64M
Total Assets
221.37M225.20M226.70M221.58M240.99M
Total Debt
42.62M46.55M38.53M32.10M36.70M
Net Debt
38.92M42.34M35.53M30.56M29.06M
Total Liabilities
107.05M117.66M120.47M105.22M113.42M
Stockholders Equity
114.33M107.54M106.24M116.36M127.57M
Cash FlowFree Cash Flow
7.11M1.09M18.06M14.27M2.58M
Operating Cash Flow
21.05M21.34M36.03M28.58M18.68M
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 Price2.05
Price Trends
50DMA
1.59
Positive
100DMA
2.00
Positive
200DMA
1.88
Positive
Market Momentum
MACD
0.12
Negative
RSI
62.39
Neutral
STOCH
60.83
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 Risk Analysis

DHI Group disclosed 39 risk factors in its most recent earnings report. DHI Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We have adopted a Section 382 rights plan, which may discourage a corporate takeover. Q4, 2024
2.
Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management. Q4, 2024

DHI Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$2.07B9.4449.80%7.21%396.32%
DHDHX
62
Neutral
$94.09M268.89-7.21%-7.42%-567.61%
61
Neutral
$11.29B10.17-6.88%2.97%7.41%-8.93%
MHMHH
61
Neutral
$87.65M42.642.52%3.93%
JOJOB
51
Neutral
$21.43M-70.70%-17.38%-1165.13%
50
Neutral
$24.48M-8.66%-9.28%-244.22%
ZIZIP
46
Neutral
$504.47M225.24-2897.28%-20.95%-152.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DHX
DHI Group
2.05
0.05
2.50%
JOB
GEE Group
0.20
-0.15
-42.86%
HSON
Hudson Global
8.90
-7.00
-44.03%
MHH
Mastech Holdings
7.26
-0.49
-6.32%
UPWK
Upwork
15.82
5.04
46.75%
ZIP
ZipRecruiter
5.41
-4.70
-46.49%

DHI Group Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
DHI Group Appoints New CFO and CLO
Positive
Jan 30, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.