Heritage Global (HGBL) AI Stock Analysis

• Market Cap: $66.70M
• Dividend Yield: N/A
• Average Volume (3M): 32.64K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.17
• Revenue Growth: -11.05%
• EPS Growth: -66.83%
• Country: US
• Employees: 86
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.05
• Shares Outstanding: 34,741,554
• 10 Day Avg. Volume: 54,839
• 30 Day Avg. Volume: 32,637
• 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: 1.00
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 2.47
• Enterprise Value/Ebitda: 9.20
• 1Y Price Target: $3.17
• Price Target Upside: 65.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $2.00 ▲(4.17% Upside)

Heritage Global's overall stock score reflects a mixed outlook. The most significant factors are the company's stable financial position and strategic focus on growth through acquisitions. However, declining profit margins, cash flow challenges, and bearish technical indicators weigh on the score. The earnings call provided some optimism with a strong pipeline and exceeded NOI goals, but declines in key financial metrics remain a concern.

Positive Factors

Financial Performance

HGBL reported 2Q25 results that beat consensus on all metrics, which was an improved performance after a slow start to the year.

Financial Stability

HGBL had $19.8M in available cash, $4.1M in debt, and is cash flow positive, indicating financial stability.

Valuation

HGBL shares currently trade at a 2026E P/E multiple of 9.1x vs. 24.5 for best-comparable Liquidity Services, suggesting room for price appreciation.

Negative Factors

Auction Activity

Heritage's Q4 was a carbon copy of Q3, missing results, driven by tepid auction activity in its Industrial Asset (IA) business.

Earnings Performance

The earnings misses resulted from an unusually weak quarter for HGBL's business of brokering charged-off loans, leading to a drop in gross profit margin.

Heritage Global Business Overview & Revenue Model

Company Description

Heritage Global Inc. (HGBL) is a diversified financial services company specializing in asset liquidation, valuation, and advisory services. The company operates across various sectors, including industrial, financial, and technology, providing solutions for distressed and surplus assets. Its core services include asset auctions, valuations, and advisory services aimed at maximizing the value recovery for its clients.

How the Company Makes Money

Heritage Global Inc. generates revenue through a multi-faceted business model centered around its asset liquidation and valuation services. The company earns money primarily through commission-based fees from conducting auctions and liquidations of surplus and distressed assets. These auctions can involve industrial machinery, real estate, and other valuable assets. Additionally, HGBL offers valuation and advisory services, which provide a stable revenue stream through consulting fees. The company also forms strategic partnerships with financial institutions and corporations to facilitate asset recovery and disposition, further enhancing its revenue potential. Overall, HGBL's earnings are driven by its expertise in maximizing asset value for its clients and its ability to navigate various sectors and markets.

Heritage Global Financial Statement Overview

Summary

Heritage Global presents a mixed financial outlook. While profitability and operational efficiency are commendable, the sharp decline in revenue and free cash flow raises concerns. The company maintains a strong balance sheet with low leverage, but there is a notable decrease in return on equity, which could impact future growth potential.

Income Statement

The income statement shows a robust performance with a Gross Profit Margin of 87.2% and a Net Profit Margin of 11.4% for 2024, indicating strong profitability. However, there is a decline in Total Revenue from 2023 to 2024 by 25.1%, which is a significant concern. EBIT and EBITDA margins remain healthy at 20.0% and 20.9% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a strong Equity Ratio of 80.2%, demonstrating financial stability. The Debt-to-Equity Ratio is low at 0.04, indicating minimal leverage. Return on Equity has decreased to 7.9% in 2024 from 20.4% in 2023, suggesting reduced profitability on equity.

Cash Flow

The cash flow statement illustrates a 40.4% decline in Free Cash Flow from 2023 to 2024, which is a downside. Nevertheless, the Operating Cash Flow to Net Income Ratio is 1.5, highlighting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.94M	45.36M	60.55M	46.91M	25.79M	26.18M
Gross Profit	27.11M	39.56M	21.39M	26.00M	17.90M	16.71M
EBITDA	7.28M	10.31M	14.83M	11.66M	3.47M	6.42M
Net Income	3.59M	5.18M	12.47M	15.49M	3.05M	9.66M
Balance Sheet
Total Assets	87.69M	81.31M	83.17M	67.56M	50.46M	44.55M
Cash, Cash Equivalents and Short-Term Investments	19.85M	21.75M	12.28M	12.67M	13.62M	23.39M
Total Debt	7.26M	2.71M	9.88M	7.15M	6.58M	1.00M
Total Liabilities	21.98M	16.11M	22.09M	19.26M	17.82M	14.61M
Stockholders Equity	65.71M	65.20M	61.08M	48.30M	32.64M	29.94M
Cash Flow
Free Cash Flow	-4.89M	7.61M	12.76M	6.27M	-4.06M	9.14M
Operating Cash Flow	10.12M	7.75M	13.02M	6.48M	-2.63M	9.15M
Investing Cash Flow	-772.00K	10.87M	-15.87M	-7.52M	-10.20M	4.51M
Financing Cash Flow	-6.03M	-9.15M	2.46M	78.00K	3.06M	7.00M

Heritage Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.92 is below the 20-day moving average (MA) of 2.11, below the 50-day MA of 2.14, and below the 200-day MA of 2.02, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.54 is Neutral, neither overbought nor oversold. The STOCH value of 23.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HGBL.

Heritage Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COHN	66 Neutral	$23.90M	10.57	4.55%	8.16%	69.61%	-55.71%
SIEB	64 Neutral	$166.89M	17.22	11.37%	―	9.24%	-2.06%
Sector *	62 Neutral	AU$10.41B	9.87	13.11%	4.73%	32.06%	21.38%
BTM	59 Neutral	$97.56M	―	77.58%	―	-3.35%	99.18%
HGBL	58 Neutral	$66.70M	19.87	5.45%	―	-11.05%	-66.83%
MDBH	48 Neutral	$37.31M	3.36	24.43%	―	8.75%	―
SRL	45 Neutral	$81.31M	―	-6.66%	4.68%	-36.67%	-1568.10%

Heritage Global Corporate Events

Heritage Global Elects Directors at Annual Meeting

On June 4, 2025, Heritage Global Inc. held its 2025 Annual Meeting of Shareholders where shareholders elected Samuel Shimer, Kelly Sharpe, and Ross Dove as Class I directors. Additionally, UHY LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025. The election and ratification reflect the company’s ongoing governance and financial oversight strategies.

The most recent analyst rating on (HGBL) stock is a Buy with a $3.50 price target. To see the full list of analyst forecasts on Heritage Global stock, see the HGBL Stock Forecast page.