DHI Group (DHX) AI Stock Analysis

• Market Cap: $105.14M
• Dividend Yield: N/A
• Average Volume (3M): 72.92K
• Price to Earnings (P/E): 268.9
• Beta (1Y): 0.73
• Revenue Growth: -8.31%
• EPS Growth: -445.30%
• Country: US
• Employees: 414
• Sector: Technology
• Sector Strength: 92
• Industry: Staffing & Employment Services
• EPS (TTM): -0.02
• Shares Outstanding: 48,010,353
• 10 Day Avg. Volume: 59,844
• 30 Day Avg. Volume: 72,917
• 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: 1.63
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 35.92
• 1Y Price Target: $6.08
• Price Target Upside: 138.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $2.50 ▼(-1.96% Downside)

DHI Group's overall stock score reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. Technical analysis and valuation metrics further highlight the company's struggles. While the earnings call and corporate events provide some positive strategic insights, the overall outlook remains cautious due to economic uncertainties and operational challenges.

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 Benefits

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

IT Hiring Challenges

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

Lowered Guidance

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

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. 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 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 shows strong cash flow and cost management, with a high gross profit margin. However, negative net income and declining revenues highlight profitability challenges. The balance sheet indicates controlled leverage, but ROE needs improvement.

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	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: 2.55
• 50DMA: Negative
• 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 2.55 is below the 20-day moving average (MA) of 2.55, below the 50-day MA of 2.68, and above the 200-day MA of 2.13, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 50.52 is Neutral, neither overbought nor oversold. The STOCH value of 41.94 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	80 Outperform	$1.83B	8.04	50.61%	―	3.92%	231.82%
HSON	55 Neutral	$25.31M	―	-9.37%	―	-3.58%	-89.07%
MHH	54 Neutral	$90.86M	106.06	1.01%	―	5.16%	―
Sector *	49 Neutral	C$3.38B	0.24	-6.09%	7.64%	9.15%	-16.14%
DHX	48 Neutral	$105.14M	268.89	-8.83%	―	-8.31%	-445.30%
JOB	47 Neutral	$21.34M	―	-53.10%	―	-15.53%	-67.84%
ZIP	47 Neutral	$384.19M	225.24	-2897.28%	―	-16.20%	-222.75%

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.