Heritage Global Inc (HGBL)
NASDAQ:HGBL
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Heritage Global
(NASDAQ:HGBL)
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Rating:60Neutral
Price Target:
$1.50
▲(2.74% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by solid balance-sheet strength but meaningfully weakened cash-flow conversion and moderating profitability/growth. Technical signals are mixed with negative momentum, while valuation is reasonable (P/E ~13.24). The latest earnings call adds modest support via growth/margin ambitions and buybacks, tempered by near-term declines and DebtX integration losses.
Positive Factors
Conservative balance sheet with very low leverage
Extremely low debt-to-equity (~0.02) and a strong equity base provide durable financial flexibility. This supports M&A, buybacks, and working-capital swings, reduces refinancing risk in downturns, and gives the company time to execute operational fixes without balance-sheet distress.
Negative Factors
Weakened cash-flow conversion and negative FCF
The swing to negative free cash flow and weak operating cash conversion signals persistent working-capital volatility or higher reinvestment needs. That undermines sustainable internal funding for growth, buybacks, and integration costs and increases reliance on balance-sheet buffers.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet with very low leverage
Extremely low debt-to-equity (~0.02) and a strong equity base provide durable financial flexibility. This supports M&A, buybacks, and working-capital swings, reduces refinancing risk in downturns, and gives the company time to execute operational fixes without balance-sheet distress.
Read all positive factors
Heritage Global (HGBL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.42M
Dividend YieldN/A
Average Volume (3M)111.66K
Price to Earnings (P/E)13.3
Beta (1Y)0.07
Revenue Growth7.68%
EPS Growth-23.96%
CountryUS
Employees86
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.10
Shares Outstanding34,734,753
10 Day Avg. Volume122,391
30 Day Avg. Volume111,657
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)0.64
Price to Sales (P/S)0.85
P/FCF Ratio-18.51
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda6.21
Forecast
1Y Price Target
$3.50Price Target Upside139.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.16
Revenue Forecast (FY)$55.94M
Heritage Global Business Overview & Revenue Model
Company Description
Heritage Global Inc., through its various subsidiary companies, operates as a specialized asset services firm, primarily concentrating on transactions involving both financial and industrial assets. The company offers a diverse array of services, ...
How the Company Makes Money
Heritage Global generally makes money by providing asset disposition and advisory services that monetize client assets through auctions and other sale formats. Revenue is typically generated from fees and commissions tied to completed sales (for e...
Heritage Global Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational positives — profitable quarter, Industrial Assets growth (+20%), a strong NLEX/subprime auto pipeline, investments in people/technology, and a strengthened strategic position through the DebtX acquisition — against notable near-term financial pressures: declines in consolidated operating income (~-28.6%), Financial Assets operating income (~-41.2%), lower revenue (~-5.9%), reduced Adjusted EBITDA (~-22.2%) and a DebtX operating loss (~$600K) tied to seasonality and integration. Management emphasized confidence in execution, hiring, and integration efforts to drive improvement over the rest of the year, making the tone cautiously optimistic but reflecting a balanced mix of achievements and challenges.Positive Updates
Profitable Quarter Despite Headwinds
Consolidated operating income of approximately $1.0M and net income of ~$700K (EPS $0.02) in Q1 2026, demonstrating the company remained profitable despite lower-than-goal results.
Negative Updates
Decline in Consolidated Operating Income Versus Prior Year
Consolidated operating income decreased to ~$1.0M from $1.4M in Q1 2025 (≈-28.6%), leaving the company with ground to make up against internal goals.
Read all updates
Q1-2026 Updates
Positive
Negative
Profitable Quarter Despite Headwinds
Consolidated operating income of approximately $1.0M and net income of ~$700K (EPS $0.02) in Q1 2026, demonstrating the company remained profitable despite lower-than-goal results.
Read all positive updates
Company Guidance
Management's guidance was a clear push for growth: they are 100% focused on expanding revenue and margins, expecting DebtX to rebound after a seasonal Q1 operating loss of ~$600k with “high prospects” for Q2 and the rest of 2026, and forecasting a potential record year in subprime auto after a record NLEX quarter; management said scaling DebtX and other financial‑asset service revenue should drive gross margins toward ~70% (historical mix 50–70%). They highlighted execution steps—adding sales/BD headcount (HGP +4 hires), enlarging the valuation team, technology and people investments—and noted a ~$400k operating income benefit from the Huntsville real estate repurchase with final M&E exit expected in the coming months. For context, consolidated operating income was ~ $1.0M (vs $1.4M prior), Industrial Assets op income ~$1.2M (vs $1.0M), Financial Assets op income ~$1.0M (vs $1.7M), revenue $12.7M (vs $13.5M), adjusted EBITDA $1.4M (vs $1.8M), net income ~$700k or $0.02/share (vs $1.1M or $0.03), stockholders’ equity $67.8M, net working capital $11.6M, cash $11.6M (net available cash $6.2M), ~107,000 shares repurchased at $1.32 avg and $7.4M remaining on the repurchase program.Heritage Global Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.24M | 50.98M | 45.36M | 60.55M | 46.91M | 25.79M |
| Gross Profit | 19.36M | 13.80M | 14.21M | 21.39M | 10.39M | 11.01M |
| EBITDA | 6.13M | 6.75M | 10.31M | 14.83M | 11.66M | 3.47M |
| Net Income | 3.24M | 3.59M | 5.18M | 12.47M | 15.49M | 3.05M |
Balance Sheet | ||||||
| Total Assets | 84.99M | 88.44M | 81.31M | 83.17M | 67.56M | 50.46M |
| Cash, Cash Equivalents and Short-Term Investments | 11.57M | 20.52M | 21.75M | 12.28M | 12.67M | 13.62M |
| Total Debt | 5.54M | 5.72M | 2.71M | 9.88M | 7.15M | 6.58M |
| Total Liabilities | 17.22M | 21.46M | 16.11M | 22.09M | 19.26M | 17.82M |
| Stockholders Equity | 67.77M | 66.98M | 65.20M | 61.08M | 48.30M | 32.64M |
Cash Flow | ||||||
| Free Cash Flow | -280.00K | -2.33M | 7.61M | 12.76M | 6.27M | -4.06M |
| Operating Cash Flow | 1.34M | 6.14M | 7.75M | 13.02M | 6.48M | -2.63M |
| Investing Cash Flow | -5.82M | -9.39M | 10.87M | -15.87M | -7.52M | -10.20M |
| Financing Cash Flow | -2.75M | 2.03M | -9.15M | 2.46M | 78.00K | 3.06M |
Heritage Global Technical Analysis
Negative
1.46
Price Trends
1.31
Negative
1.31
Negative
1.39
Negative
Market Momentum
>-0.01
Negative
46.07
Neutral
21.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGBL, the sentiment is Negative. The current price of 1.46 is above the 20-day moving average (MA) of 1.26, above the 50-day MA of 1.31, and above the 200-day MA of 1.39, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 21.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HGBL.
Heritage Global Risk Analysis
Heritage Global disclosed 26 risk factors in its most recent earnings report. Heritage Global 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
Heritage Global Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $176.22M | 21.44 | 5.95% | 3.32% | 6.26% | 1779.57% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $43.42M | 13.35 | 4.85% | ― | 7.68% | -23.96% | |
52 Neutral | $76.21M | -1.29 | -47.46% | ― | 399.17% | 52.67% | |
50 Neutral | $27.14M | 4.10 | ― | ― | 1.56% | ― | |
47 Neutral | $7.63M | -0.32 | ― | ― | ― | ― |
* Financial Sector Average
HGBL
Heritage Global
1.25
-0.94
-42.92%
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TOP
Zhong Yang Financial Group Ltd.
1.37
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17.09%
Heritage Global Corporate Events
Executive/Board ChangesShareholder Meetings
Heritage Global Shareholders Elect Directors, Ratify 2026 Auditor
Positive
Jun 4, 2026
Heritage Global Inc. held its 2026 Annual Meeting of Shareholders on June 3, 2026, with common and preferred shareholders voting on board composition and auditor selection. Shareholders considered the election of two Class II directors and the rat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.