Heritage Global Inc (HGBL)
NASDAQ:HGBL
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Heritage Global
(NASDAQ:HGBL)
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Rating:61Neutral
Price Target:
$1.50
▲(2.74% Upside)
Action:ReiteratedDate:03/13/26
The score is driven mainly by solid financial stability from very low leverage, tempered by inconsistent earnings quality and cash-flow volatility (including negative 2025 free cash flow). Technicals are a notable drag with the stock trading below major moving averages and weak momentum, while valuation appears reasonable and the earnings-call outlook is cautiously constructive due to DebtX accretion potential and improving deal flow expectations.
Positive Factors
Conservative Balance Sheet
Extremely low leverage (debt-to-equity ~0.02) and a growing equity base provide durable financial flexibility. This limits solvency risk, supports opportunistic M&A or buybacks, and cushions cyclical revenue swings, enhancing long-term capacity to fund growth or weather downturns.
Negative Factors
Free Cash Flow Volatility
Inconsistent cash generation and a swing to negative free cash flow in 2025 indicate fragile cash conversion. Durable reinvestment, debt repayment, or dividend capacity is constrained if cash remains volatile, and funding reliance could increase during weaker transaction cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage (debt-to-equity ~0.02) and a growing equity base provide durable financial flexibility. This limits solvency risk, supports opportunistic M&A or buybacks, and cushions cyclical revenue swings, enhancing long-term capacity to fund growth or weather downturns.
Read all positive factors
Heritage Global (HGBL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.38M
Dividend YieldN/A
Average Volume (3M)111.66K
Price to Earnings (P/E)35.9
Beta (1Y)0.09
Revenue Growth0.02%
EPS Growth-68.55%
CountryUS
Employees86
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.01
Shares Outstanding34,741,554
10 Day Avg. Volume122,391
30 Day Avg. Volume111,657
Financial Highlights & Ratios
PEG Ratio-0.42
Price to Book (P/B)0.64
Price to Sales (P/S)0.85
P/FCF Ratio-18.51
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit0.74
Enterprise Value/Ebitda4.71
Forecast
1Y Price Target
$3.50Price Target Upside139.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.17
Revenue Forecast (FY)$54.85M
Heritage Global Business Overview & Revenue Model
Company Description
Heritage Global, Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company provides market making, acquisitions, dispositions, valuations, and secured lending...
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:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational positives include revenue growth (+10.2%), a move to net profitability, strong Industrial/ALT performance, a strategic and accretive DebtX acquisition, a new corporate HQ to support scaling, and a solid cash position. Offsetting these are meaningful profitability and balance-sheet headwinds — adjusted EBITDA roughly halved, Financial Assets operating income fell >50%, large expirations of NOLs, and a dramatic reduction in reported stockholders' equity. Management expressed optimism about 2026 pipeline activity and integration benefits, but the material declines in EBITDA and equity and near-term charge-off risk keep the outlook cautious. Overall, positives and negatives are balanced.Positive Updates
Revenue Growth Year-over-Year
Total revenue increased to $11.9M in FY2025 from $10.8M in FY2024, a +$1.1M improvement (+10.2%).
Negative Updates
Decline in Consolidated Operating Income
Consolidated operating income fell to $800K in Q4 2025 from $1.5M in Q4 2024, a decrease of $700K (≈ -46.7%). Q4 2025 included ~$400K of M&A due diligence expenses that weighed on results.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth Year-over-Year
Total revenue increased to $11.9M in FY2025 from $10.8M in FY2024, a +$1.1M improvement (+10.2%).
Read all positive updates
Company Guidance
Management guided that 2026 should be a “year of the needle mover,” driven by stronger deal flow, M&A (DebtX closed and expected to be accretive in 2026), and internal expansion; key metrics cited include Q4 FY2025 consolidated revenue of $11.9M, operating income $0.8M (vs $1.5M in Q4 2024), adjusted EBITDA $1.1M (vs $2.1M), net income ~$0.3M or $0.01/diluted share (vs a ~$0.2M loss in 2024), Industrial operating income ~$1.1M (vs ~$0.8M), Financial operating income ~$0.9M (vs $1.9M), ALT operating income $538k (vs $276k), DebtX standalone operating income $800k in 2025 and historically >50% of its revenue in Q4, balance sheet metrics of shareholders’ equity $7.0M (12/31/2025), net working capital $18.1M, cash $20.5M (net available cash $13.2M), expired NOLs ~$18.9M with remaining NOLs ~$15.5M (valuation allowance removed), a $100k non‑cash tax adjustment in Q4 (vs $1.3M prior year), no share repurchases in 2025 but a $7.5M repurchase authorization over three years, and an expectation of quarter‑to‑quarter variability, elevated consumer delinquencies leading to higher charge‑offs, and earlier Industrial strength with a slower Financial pickup.Heritage Global Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
86
Very Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 50.98M | 45.36M | 60.55M | 46.91M | 25.79M |
| Gross Profit | 43.02M | 14.21M | 21.39M | 10.39M | 11.01M |
| EBITDA | 6.75M | 10.31M | 14.83M | 11.66M | 3.47M |
| Net Income | 3.59M | 5.18M | 12.47M | 15.49M | 3.05M |
Balance Sheet | |||||
| Total Assets | 88.44M | 81.31M | 83.17M | 67.56M | 50.46M |
| Cash, Cash Equivalents and Short-Term Investments | 20.52M | 21.75M | 12.28M | 12.67M | 13.62M |
| Total Debt | 5.72M | 2.71M | 9.88M | 7.15M | 6.58M |
| Total Liabilities | 21.46M | 16.11M | 22.09M | 19.26M | 17.82M |
| Stockholders Equity | 66.98M | 65.20M | 61.08M | 48.30M | 32.64M |
Cash Flow | |||||
| Free Cash Flow | -2.33M | 7.61M | 12.76M | 6.27M | -4.06M |
| Operating Cash Flow | 6.14M | 7.75M | 13.02M | 6.48M | -2.63M |
| Investing Cash Flow | -9.39M | 10.87M | -15.87M | -7.52M | -10.20M |
| Financing Cash Flow | 2.03M | -9.15M | 2.46M | 78.00K | 3.06M |
Heritage Global Technical Analysis
Positive
1.46
Price Trends
1.32
Positive
1.32
Positive
1.56
Negative
Market Momentum
0.04
Negative
65.89
Neutral
88.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HGBL, the sentiment is Positive. The current price of 1.46 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.32, and below the 200-day MA of 1.56, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.89 is Neutral, neither overbought nor oversold. The STOCH value of 88.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $155.45M | 19.44 | 5.77% | 3.32% | 4.03% | 151.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $50.38M | 35.88 | 5.42% | ― | 0.02% | -68.55% | |
52 Neutral | $69.20M | -3.15 | -21.91% | ― | ― | ― | |
44 Neutral | $19.80M | 1.61 | ― | ― | -3.52% | 83.39% | |
39 Underperform | $7.82M | -0.41 | ― | ― | -13.86% | -32.19% |
* Financial Sector Average
HGBL
Heritage Global
1.46
-0.52
-26.26%
DOMH
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2.92
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-18.28%
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1.32
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109.52%
WHG
Westwood Holdings Group
16.80
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9.30%
ARBK
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2.95
-68.39
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TOP
Zhong Yang Financial Group Ltd.
0.88
-0.25
-22.48%
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.