Hudson Tech (HDSN) AI Stock Analysis

• Market Cap: $434.94M
• Dividend Yield: N/A
• Average Volume (3M): 496.85K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.68
• Revenue Growth: -14.17%
• EPS Growth: -49.13%
• Country: US
• Employees: 238
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Chemicals - Specialty
• EPS (TTM): 0.23
• Shares Outstanding: 43,668,370
• 10 Day Avg. Volume: 430,481
• 30 Day Avg. Volume: 496,854
• 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: 0.66
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: 13.56
• 1Y Price Target: $10.50
• Price Target Upside: 2.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: $10.50 ▲(2.44% Upside)

Hudson Tech's overall stock score reflects strong financial performance and positive technical indicators, tempered by valuation concerns and potential risks from reduced financial flexibility. The company's strategic focus on growth and regulatory positioning provides a balanced outlook.

Positive Factors

Financial Performance

Hudson reported $22.8M in gross profit, yielding ~31% gross margins, driven predominantly by increased refrigerant prices.

Growth Prospects

Management is exploring acquisition opportunities to utilize the company’s growing cash balance, indicating potential future growth.

Pricing Strategy

Tariff-supported HFC pricing boosts margins.

Negative Factors

Margin Compression

Gross margin compression was predominantly price-driven and came in below management’s guidance.

Revenue and Profit Decline

Q1/25 earnings results showed a decline in revenues and profits due to challenging pricing environment and seasonally slower sales activity.

Hudson Tech Business Overview & Revenue Model

Company Description

Hudson Technologies, Inc. a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States. The company's products and services include refrigerant and industrial gas sales; refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. It also offers SmartEnergy OPS service, a web-based real time continuous monitoring service for facility's refrigeration systems and other energy systems applications; and Chiller Chemistry and Chill Smart services. In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. Hudson Technologies, Inc. was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.

How the Company Makes Money

Hudson Tech generates revenue through multiple streams, primarily by offering subscription-based software services, licensing its proprietary technologies, and providing consulting services for system integration and optimization. A significant portion of its income comes from long-term contracts with enterprise clients who require ongoing support and updates for their technology implementations. Additionally, HDSN has formed strategic partnerships with leading firms in the tech industry, allowing it to expand its market reach and enhance its product offerings, further contributing to its earnings.

Hudson Tech Financial Statement Overview

Summary

Hudson Tech's financial position is strong, characterized by stable profitability, prudent cash flow management, and a solid balance sheet. However, recent pressures on revenue and asset growth suggest a need for strategic initiatives to sustain momentum.

Income Statement

Hudson Tech's income statement shows a remarkable recovery from past losses, with consistent net profit margins and positive revenue growth over the past few years. The TTM data reflects a slight decline in revenue and profitability, but overall, the company maintains solid gross and EBIT margins, indicating good operational efficiency. However, the recent trend of shrinking revenues and margins may pose a challenge if not addressed.

Balance Sheet

The balance sheet indicates a strong equity base with a low debt-to-equity ratio, suggesting financial stability. The equity ratio is healthy, ensuring limited leverage risks. However, the reduction in total assets and stockholders' equity over the recent period may signal potential constraints in asset growth and capital utilization.

Cash Flow

Hudson Tech has shown impressive cash flow management with robust free cash flow generation and positive operating cash flow trends. The company has successfully increased free cash flow despite reduced revenue, reflecting efficient cost management and capital expenditure control. However, the slight decline in operating cash flow in the TTM period warrants monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	224.78M	237.12M	289.02M	325.23M	192.75M	147.60M
Gross Profit	56.59M	65.71M	111.51M	162.89M	71.66M	35.41M
EBITDA	21.27M	35.69M	83.95M	137.49M	50.95M	13.03M
Net Income	18.17M	24.39M	52.25M	103.80M	32.26M	-5.21M
Balance Sheet
Total Assets	317.85M	302.65M	296.67M	272.49M	215.72M	161.65M
Cash, Cash Equivalents and Short-Term Investments	84.29M	70.13M	12.45M	5.29M	3.49M	1.35M
Total Debt	3.94M	6.88M	6.68M	50.67M	100.27M	93.92M
Total Liabilities	63.07M	56.80M	67.90M	97.62M	144.78M	121.03M
Stockholders Equity	254.78M	245.85M	228.77M	174.88M	70.94M	40.62M
Cash Flow
Free Cash Flow	66.45M	86.51M	54.97M	59.16M	-3.15M	10.22M
Operating Cash Flow	71.55M	91.81M	58.55M	62.81M	-1.23M	11.69M
Investing Cash Flow	-5.09M	-25.97M	-3.58M	-3.66M	-1.92M	-470.00K
Financing Cash Flow	-12.69M	-8.15M	-47.82M	-57.35M	5.29M	-12.47M

Hudson Tech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDSN, the sentiment is Positive. The current price of 10.25 is above the 20-day moving average (MA) of 9.71, above the 50-day MA of 8.79, and above the 200-day MA of 6.80, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 71.94 is Negative, neither overbought nor oversold. The STOCH value of 91.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HDSN.

Hudson Tech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDSN	74 Outperform	$434.94M	25.27	7.22%	―	-14.17%	-49.13%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
GEVO	58 Neutral	$428.06M	―	-11.71%	―	341.75%	20.16%
GPRE	58 Neutral	$662.87M	―	-18.95%	―	-15.66%	-237.12%
LOOP	54 Neutral	$71.58M	―	-406.97%	―	8400.76%	31.02%
GURE	48 Neutral	$9.76M	―	-17.63%	―	-15.26%	73.10%
ALTO	48 Neutral	$81.27M	―	-28.22%	―	-12.70%	-74.32%

Hudson Tech Corporate Events

Hudson Tech Amends Credit Agreement with Wells Fargo

On June 23, 2025, Hudson Technologies Company and Hudson Holdings, Inc. amended their credit agreement with Wells Fargo, reducing their revolving credit facility from $75 million to $40 million and decreasing the letter of credit sublimit from $2 million to $1.5 million. This amendment may impact the company’s financial flexibility and borrowing capacity, potentially affecting its operations and market positioning.

Hudson Tech Shareholders Elect New Directors at Meeting

At the Annual Meeting of Shareholders of Hudson Technologies, Inc. held on June 11, 2025, shareholders elected Vincent P. Abbatecola, Nicole Bulgarino, and Brian F. Coleman as directors until 2027. They also approved executive compensation on a non-binding advisory basis, decided on an annual frequency for future advisory votes on executive compensation, and ratified BDO USA, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The board subsequently agreed to continue with annual advisory votes on executive compensation.