Education
About Us
Working with TipRanks
Follow Us
Hudson Technologies (HDSN)
NASDAQ:HDSN
Top Page
Hudson Tech
(NASDAQ:HDSN)
70Outperform
Positive Factors
Margin Expansion
There is potential for significant margin expansion in 2025 as the company takes advantage of current market conditions to replenish inventory with lower-cost refrigerants.
Market Position
The company is well-positioned to handle the current pricing environment due to its strong market position and balance sheet.
Negative Factors
Financial Performance
Hudson Technologies reported revenues down 19% and EPS down 42% compared to the previous year.
Market Sentiment
The recommendation for Hudson Technologies stock has been downgraded from Buy to Neutral.
Revenue Guidance
Management lowered revenue guidance and expects gross margins to be lower.
Hudson Tech (HDSN) vs. S&P 500 (SPY)
Market Cap
$265.91M
Dividend YieldN/A
Average Volume (3M)495.31K
Price to Earnings (P/E)12.0
Beta (1Y)0.18
Revenue Growth-17.96%
EPS Growth-53.53%
CountryUS
Employees238
SectorBasic Materials
Sector Strength64
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.51
Shares Outstanding44,025,110
10 Day Avg. Volume428,949
30 Day Avg. Volume495,315
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.14
Price to Cash Flow (P/CF)3.30
P/FCF Ratio3.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.25Price Target Upside10.62% Upside
Rating ConsensusHold
Number of Analyst Covering2
Hudson Tech Business Overview & Revenue Model
Company DescriptionHudson Tech (HDSN) is a leading provider of innovative technology solutions, specializing in the design and manufacturing of advanced electronic components and systems. Operating within the technology sector, Hudson Tech delivers cutting-edge products and services to a diverse range of industries, including telecommunications, automotive, and consumer electronics. The company is known for its commitment to quality, innovation, and customer satisfaction, offering a portfolio that includes semiconductors, integrated circuits, and software solutions.
How the Company Makes MoneyHudson Tech makes money through the sale of its electronic components and systems to various industries. The company's primary revenue streams include direct sales to manufacturers and distributors, licensing agreements for its proprietary technologies, and service contracts for maintenance and support. Significant partnerships with major technology firms and OEMs (Original Equipment Manufacturers) enhance its market reach and profitability. Additionally, Hudson Tech invests in research and development to continuously innovate and expand its product offerings, thereby driving sales and maintaining competitive advantage in the marketplace.
Hudson Tech Financial Statement Overview
Summary
Hudson Tech demonstrates strong financial performance with solid profitability, effective cash flow management, and declining debt-to-equity ratio. However, the decline in revenue and asset fluctuations pose challenges to sustaining growth.Income Statement
Hudson Tech demonstrates a strong gross profit margin and improved net profit margin over recent years. However, a decline in revenue from 2022 to 2023 indicates potential challenges in sustaining growth. While EBIT and EBITDA margins remain solid, the company must address revenue growth to maintain financial health.72
Positive
Balance Sheet
The balance sheet reflects a positive trend with a decreasing debt-to-equity ratio, indicating effective leverage management. Return on equity has been commendable, though fluctuations in total assets and equity ratios suggest underlying volatility. The company's equity position is strengthening, but continued focus on asset management is essential.68
Positive
Cash Flow
Hudson Tech's cash flow statement is robust, with a significant improvement in free cash flow and a strong operating cash flow to net income ratio. The free cash flow to net income ratio underscores efficient cash management, though variability in cash flow growth rates highlights potential operational uncertainties.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 237.12M | 289.02M | 325.23M | 192.75M | 147.60M | Gross Profit |
| 65.71M | 111.51M | 162.89M | 71.66M | 35.41M | EBIT |
| 29.30M | 78.17M | 131.51M | 42.30M | 5.90M | EBITDA |
| 29.30M | 83.95M | 137.49M | 50.95M | 13.03M | Net Income Common Stockholders |
| 24.39M | 52.25M | 103.80M | 32.26M | -5.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 70.13M | 12.45M | 5.29M | 3.49M | 1.35M | Total Assets |
| 302.65M | 296.67M | 272.49M | 215.72M | 161.65M | Total Debt |
| 4.92M | 6.68M | 50.67M | 100.27M | 93.92M | Net Debt |
| -65.22M | -5.76M | 45.37M | 96.78M | 92.57M | Total Liabilities |
| 56.80M | 67.90M | 97.62M | 144.78M | 121.03M | Stockholders Equity |
| 245.85M | 228.77M | 174.88M | 70.94M | 40.62M |
| Cash Flow | Free Cash Flow | |||
| 86.51M | 54.97M | 59.16M | -3.15M | 10.22M | Operating Cash Flow |
| 91.81M | 58.55M | 62.81M | -1.23M | 11.69M | Investing Cash Flow |
| -25.97M | -3.58M | -3.66M | -1.92M | -470.00K | Financing Cash Flow |
| -8.15M | -47.82M | -57.35M | 5.29M | -12.47M |
Hudson Tech Technical Analysis
Negative
5.65
Price Trends
5.87
Negative
5.83
Negative
7.00
Negative
Market Momentum
0.10
Negative
51.11
Neutral
43.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDSN, the sentiment is Negative. The current price of 5.65 is below the 20-day moving average (MA) of 6.06, below the 50-day MA of 5.87, and below the 200-day MA of 7.00, indicating a bearish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HDSN.
Hudson Tech Risk Analysis
Hudson Tech disclosed 16 risk factors in its most recent earnings report. Hudson Tech 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 0 New Risks
Hudson Tech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $53.74B | 31.08 | 9.80% | 1.92% | -4.53% | -14.72% | |
72 Outperform | $57.46B | 24.23 | 9.66% | 2.06% | 10.29% | 22.72% | |
70 Outperform | $265.91M | 12.02 | 10.28% | ― | -17.96% | -53.53% | |
70 Outperform | $52.46B | 129.36 | 27.44% | 1.31% | 8.62% | 163.53% | |
63 Neutral | $9.14B | 17.55 | 28.63% | 2.07% | -0.90% | -1.69% | |
61 Neutral | $6.30B | 38.44 | 21.61% | 0.54% | 2.75% | -5.43% | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% |
* Basic Materials Sector Average
Performance Comparison
HDSN
Hudson Tech
5.65
-4.95
-46.70%
AAON
Aaon
77.48
-12.10
-13.51%
EMR
Emerson Electric Company
101.89
-10.61
-9.43%
JCI
Johnson Controls
77.23
13.29
20.79%
AOS
A. O. Smith Corporation
63.66
-22.39
-26.02%
CARR
Carrier Global
60.72
4.96
8.90%
Hudson Tech Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 0.71% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Hudson Technologies' strong cash position, stock repurchase program, and increased reclaim activity, supported by favorable regulatory changes. However, significant revenue and margin declines, fourth-quarter losses, and challenges with HFC pricing indicate financial difficulties and market challenges.Highlights
Strong Cash Position and No Debt
Hudson Technologies ended 2024 with $70 million in cash and no debt, strengthening its unlevered balance sheet.
Stock Repurchase Program
The company repurchased a total of $8.1 million of common stock in 2024, demonstrating confidence in its financial position.
Increase in Reclaim Activity
Overall reclaim activity increased by 18% in 2024, supported by the acquisition of USA Refrigerants, enhancing recovery and reclamation capabilities.
Regulatory Support for Reclaimed Refrigerants
Federal and state mandates, including those in California and New York, promote the use of reclaimed refrigerants, creating long-term opportunities.
Lowlights
Revenue and Margin Decline
Full-year revenue decreased by 18% to $237 million in 2024 compared to 2023, with gross margins declining from 39% to 28% due to lower refrigerant market prices.
Fourth Quarter Revenue Drop
Fourth-quarter revenue was $34.6 million, a 23% decrease from the same period in 2023, primarily due to lower refrigerant prices and DLA contract revenue.
Operating and Net Loss in Q4
Hudson Technologies reported an operating loss of $3.2 million and a net loss of $2.6 million in the fourth quarter of 2024, compared to income in the prior year.
HFC Pricing Challenges
HFC pricing declined up to 45% throughout 2024 with no price improvement by year-end, impacting revenue and profitability.
Company Guidance
During the conference call discussing Hudson Technologies Inc.'s financial results for the fourth quarter and year-end 2024, several key metrics and guidance for 2025 were provided. The company reported a full-year revenue of $237 million, slightly below their revised target of $240 million, and achieved their gross margin target of 28%. Notably, they ended the year with a cash position of $70 million and no debt. Despite a challenging year with HFC pricing declining up to 45%, their diverse sales channels mitigated the impact. The company repurchased $8.1 million of common stock in 2024 and saw an 18% increase in reclaim activity. For 2025, Hudson Technologies anticipates gross margins in the mid to upper twenties, with the potential for challenging comparisons in the first quarter due to pricing dynamics. They recognized $36 million in revenue from the DLA contract in 2024 and expect it to trend to normal purchasing levels in 2025. Hudson Technologies also highlighted the strategic acquisition of USA Refrigerants, which enhanced their reclamation capabilities amidst evolving regulatory mandates promoting reclaimed refrigerants.Hudson Tech Corporate Events
Stock BuybackBusiness Operations and Strategy
Hudson Tech Expands Share Repurchase and Strategic Investments
Positive
Oct 25, 2024
Hudson Technologies has announced an increase in its share repurchase program, allowing the company to buy back up to $20 million of its common stock over 2024 and 2025. This move, reflecting confidence in the company’s growth potential, provides flexibility for strategic investments and shareholder returns. The repurchase program can be adjusted based on market conditions and other factors, and offers a strategic approach to capital allocation alongside the company’s investment in refrigerant reclamation and energy services.
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.