Hudson Tech (HDSN) AI Stock Analysis

• Market Cap: $373.06M
• Dividend Yield: N/A
• Average Volume (3M): 321.51K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.64
• Revenue Growth: -14.17%
• EPS Growth: -49.13%
• Country: US
• Employees: 238
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Chemicals - Specialty
• EPS (TTM): 0.23
• Shares Outstanding: 43,480,720
• 10 Day Avg. Volume: 310,966
• 30 Day Avg. Volume: 321,509
• PEG Ratio: 4.28
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.14
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 2.82
• 1Y Price Target: $10.67
• Price Target Upside: 13.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $10.50 ▲(11.82%Upside)

Hudson Tech demonstrates strong financial health and technical momentum, supported by a positive earnings outlook. However, the company's valuation and potential impacts from the amended credit agreement present challenges. The strategic focus on reclamation and refrigerant markets is a significant strength.

Positive Factors

Financial Performance

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

Pricing Strategy

Tariff-supported HFC pricing boosts margins.

Negative Factors

Earnings Decline

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

Margin Compression

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

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 a diversified model that includes software licensing, subscription-based services, and consulting fees. The company earns a significant portion of its income by selling enterprise software licenses to businesses, which require ongoing support and updates. Additionally, HDSN offers cloud computing services on a subscription basis, providing scalable and reliable infrastructure for businesses' IT needs. Consulting services, which involve advising companies on technology strategies and implementing IT solutions, also contribute to the company's revenue streams. Partnerships with major tech firms enhance HDSN's offerings and expand its market reach, further driving sales and profitability.

Hudson Tech Financial Statement Overview

Summary

Hudson Tech shows solid financial performance with strong profitability and cash flow management. However, recent revenue contraction and asset fluctuations pose challenges that need addressing to sustain long-term growth. Continued focus on revenue expansion and asset efficiency will be key to maintaining financial stability.

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.

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.

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.

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	20.62M	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: 9.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 9.39 is above the 20-day moving average (MA) of 8.34, above the 50-day MA of 7.86, and above the 200-day MA of 6.60, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 72.91 is Negative, neither overbought nor oversold. The STOCH value of 58.57 is Neutral, 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	75 Outperform	$373.06M	22.39	7.22%	―	-14.17%	-49.13%
Sector *	61 Neutral	$9.52B	9.43	-1.39%	3.00%	3.05%	-61.98%
LOOP	58 Neutral	$77.78M	―	-406.97%	―	8400.76%	31.02%
GPRE	57 Neutral	$561.78M	―	-12.34%	―	-19.82%	-34.91%
GEVO	52 Neutral	$330.60M	―	-16.11%	―	145.38%	-22.02%
GURE	48 Neutral	$8.68M	―	-34.69%	―	-74.50%	7.21%
ALTO	46 Neutral	$77.98M	―	-24.43%	―	-17.27%	-112.62%

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.

The most recent analyst rating on (HDSN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Hudson Tech stock, see the HDSN Stock Forecast page.

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.

The most recent analyst rating on (HDSN) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Hudson Tech stock, see the HDSN Stock Forecast page.