DHI Group (DHX) AI Stock Analysis

• Market Cap: $142.59M
• Dividend Yield: N/A
• Average Volume (3M): 147.53K
• Price to Earnings (P/E): 268.9
• Beta (1Y): 0.69
• Revenue Growth: -8.31%
• EPS Growth: -445.30%
• Country: US
• Employees: 414
• Sector: Technology
• Sector Strength: 81
• Industry: Staffing & Employment Services
• EPS (TTM): -0.02
• Shares Outstanding: 48,010,353
• 10 Day Avg. Volume: 291,291
• 30 Day Avg. Volume: 147,531
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 35.92
• 1Y Price Target: $6.08
• Price Target Upside: 104.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $3.00 ▲(0.67% Upside)

The overall stock score of 57 reflects the financial challenges faced by DHI Group, with declining revenues and profitability being the most significant factors. Technical analysis provides some positive momentum, but valuation concerns and mixed earnings call sentiment weigh on the score. The restructuring efforts are noted but do not significantly alter the overall assessment.

Positive Factors

Cost Management

DHI Group, Inc. has implemented cost reductions and stringent expense control, leading to a decrease in operating expenses from $33.8 million to $29.1 million.

Restructuring

Restructuring to align Dice’s cost structure with market conditions is expected to save about $15 million annually, improving margins.

Strategic Acquisition

The company acquired AgileATS for $2M, a strategic move to expand DHI’s footprint in GovTech.

Negative Factors

Guidance Reduction

The company lowered its 2025 revenue guidance range from $131M-$135M to $126M-$128M.

Market Environment

DHI continues to operate in a challenging environment for IT hiring, with total bookings decreasing by 9.6%.

Revenue Decline

DHI's total revenue declined by 11% year-over-year, and total bookings were down 10%.

DHI Group Business Overview & Revenue Model

Company Description

DHI Group, Inc. (DHX) is a specialized provider of career services for technology and security professionals. The company operates primarily in the technology sector, focusing on connecting skilled professionals with employment opportunities through its various platforms. DHX is best known for its flagship brand, Dice, which serves as a job board for tech-related positions, as well as other services that include talent acquisition solutions, salary benchmarking, and career development resources for job seekers in the technology field.

How the Company Makes Money

DHI Group generates revenue primarily through its job board and recruitment services. The company's main revenue streams include subscription fees from employers who post job listings on its platforms, fees for access to its candidate database, and premium services such as enhanced job postings and employer branding solutions. Additionally, DHI offers recruitment advertising solutions to employers looking to attract talent. Significant partnerships with various tech companies and recruitment agencies further contribute to its earnings by expanding its reach and enhancing its service offerings.

DHI Group Financial Statement Overview

Summary

DHI Group is facing financial challenges with declining revenues and profitability, as reflected in the income statement. The balance sheet shows a stable but not strong financial position, with manageable leverage but negative returns on equity. Cash flow analysis reveals some concerns with declining free cash flow, although operational cash generation remains positive. The company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

The income statement reveals a challenging period for DHI Group, with declining revenue and profitability. The TTM data shows a negative net profit margin of -6.97% and a negative EBIT margin of -4.87%, indicating operational inefficiencies. Revenue growth has also been negative, suggesting a contraction in business activity. However, the gross profit margin remains strong at 84.65%, highlighting the company's ability to maintain cost control over direct expenses.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.39, indicating a manageable level of leverage. However, the return on equity is negative at -8.68%, reflecting the company's struggle to generate returns for shareholders. The equity ratio stands at 50%, suggesting a balanced capital structure with half of the assets financed by equity.

Cash Flow

Cash flow analysis indicates a mixed performance. The operating cash flow to net income ratio is 0.31, suggesting that cash generation from operations is not fully covering net income. Free cash flow has decreased by 7.86%, indicating potential challenges in sustaining cash reserves. However, the free cash flow to net income ratio of 0.46 shows some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.40M	141.93M	151.88M	149.68M	119.90M	111.17M
Gross Profit	110.00M	121.69M	132.09M	132.07M	104.81M	96.88M
EBITDA	4.78M	24.12M	24.02M	20.99M	15.98M	-24.13M
Net Income	-9.37M	253.00K	3.49M	4.18M	-29.74M	-30.02M
Balance Sheet
Total Assets	204.94M	221.37M	225.20M	226.70M	221.58M	240.99M
Cash, Cash Equivalents and Short-Term Investments	2.78M	3.70M	4.21M	3.01M	1.54M	4.54M
Total Debt	39.90M	42.62M	46.55M	38.53M	32.10M	31.03M
Total Liabilities	102.45M	107.05M	117.66M	120.47M	105.22M	113.42M
Stockholders Equity	102.50M	114.33M	107.54M	106.24M	116.36M	127.57M
Cash Flow
Free Cash Flow	8.80M	7.11M	1.09M	18.06M	14.27M	2.58M
Operating Cash Flow	19.01M	21.05M	21.34M	36.03M	28.58M	18.68M
Investing Cash Flow	-10.20M	-13.93M	-15.31M	-17.66M	-19.30M	-15.90M
Financing Cash Flow	-8.98M	-7.62M	-4.83M	-16.91M	-15.39M	-542.00K

DHI Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.98
• 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 2.98 is above the 20-day moving average (MA) of 2.61, above the 50-day MA of 2.74, and above the 200-day MA of 2.20, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 63.48 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	79 Outperform	$2.15B	9.30	50.61%	―	3.92%	231.82%
Sector *	61 Neutral	$35.56B	9.00	-10.49%	1.86%	8.45%	-8.32%
STRR	60 Neutral	$33.04M	―	-9.37%	―	-3.58%	-89.07%
DHX	57 Neutral	$142.59M	268.89	-8.83%	―	-8.31%	-445.30%
MHH	54 Neutral	$94.12M	115.25	1.01%	―	5.16%	―
ZIP	54 Neutral	$428.62M	225.24	-2897.28%	―	-16.20%	-222.75%
JOB	48 Neutral	$20.80M	―	-53.10%	―	-15.53%	-67.84%

DHI Group Corporate Events

DHI Group Announces Major Workforce Restructuring

On June 23, 2025, DHI Group, Inc. announced a significant organizational restructuring aimed at reducing operating costs for its Dice brand by cutting approximately 25% of its workforce. This restructuring is projected to save the company between $14 million and $16 million annually, with immediate cost savings expected post-restructuring. The company anticipates incurring $4.2 million in cash charges for employee severance and benefits, with most charges recognized in the second quarter of 2025 and payments completed by the fourth quarter. The restructuring is expected to be largely completed by July 2025, though the actual costs and savings may vary due to local law requirements and unforeseen events.