Harte-Hanks (HHS) AI Stock Analysis

• Market Cap: $34.76M
• Dividend Yield: N/A
• Average Volume (3M): 19.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -4.46%
• EPS Growth: -3053.30%
• Country: US
• Employees: 1,715
• Sector: Industrials
• Sector Strength: 91
• Industry: Advertising Agencies
• EPS (TTM): 0.06
• Shares Outstanding: 7,364,430
• 10 Day Avg. Volume: 11,337
• 30 Day Avg. Volume: 19,003
• PEG Ratio: 1.52
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.58
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.56
• Enterprise Value/Ebitda: -0.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Harte-Hanks is facing significant financial challenges with declining revenues, negative profitability, and cash flow issues. The technical indicators suggest bearish momentum and poor valuation metrics further compound the outlook. The lack of positive earnings and dividend yield make the stock less attractive, with substantial risks to financial stability and long-term viability. However, some improvement in debt management provides a slight positive note.

Harte-Hanks Business Overview & Revenue Model

Company Description

Harte Hanks, Inc. operates as a customer experience company in the United States and internationally. It operates through three segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. The company provides strategic guidance to help clients to plan and execute omni-channel marketing programs; audience identification, profiling, segmentation and prioritization, predictive modeling, and data strategy services; data hygiene and cleansing services; print, broadcast, direct mail, website, app, display, social, mobile, search engine marketing, and voice services; Website and app development, e-commerce enablement, database building and management, platform architecture creation, and marketing automation services; and outsourcing marketing operations solutions. It also offers customer experience management services comprising interact and resolve consumer concerns across hardware and software platforms, healthcare benefit plans, and recalls or a myriad of other customer service issues; CRM and digital transformation solutions to create meaningful customer interactions by connecting content between agent or AI-driven interfaces and web-based self-help tools and community forums; and intelligence-based B2B solutions that understand audiences and their behaviors, and then inspire and drive action to deliver results. In addition, the company provides product, print-on-demand, and mail fulfillment solutions, such as printing on demand, managing product recalls, and distributing literature and promotional products; custom solutions to engage audiences, target customers, support conferences, and appreciate employees; and third-party logistics and freight optimization services. It primarily serves B2B, consumer brand, financial services, retail, and healthcare vertical markets. Harte Hanks, Inc. was founded in 1923 and is headquartered in Chelmsford, Massachusetts.

How the Company Makes Money

Harte-Hanks makes money primarily through offering its marketing services to businesses across different industries. The company's revenue model is based on providing data-driven marketing solutions that help clients engage their customers effectively. Key revenue streams include fees for services such as customer database management, analytics, and targeted marketing campaigns. Additionally, Harte-Hanks generates income from its direct mail services, where it assists clients in designing, executing, and analyzing direct mail marketing strategies. Partnerships with technology providers and other firms often enhance the company's service offerings, contributing to its earnings by expanding its reach and capabilities. Harte-Hanks' focus on tailored marketing solutions allows it to charge premium rates for its expertise in enhancing customer engagement and brand loyalty.

Harte-Hanks Financial Statement Overview

Summary

Harte-Hanks is experiencing significant financial challenges with declining revenues and persistent net losses. The income statement highlights operational inefficiencies with negative profit margins. The balance sheet indicates a moderately leveraged position, but profitability issues are evident. The cash flow statement shows negative cash flow generation, raising concerns about liquidity and sustainability. Overall, the financial performance is pressured by these factors, necessitating strategic improvements.

Income Statement

The company's income statement shows challenges with declining revenues and profitability. The TTM revenue decreased from $185.24M to $181.36M, marking a revenue decline. The gross profit margin for TTM stands at 47%, indicating some ability to cover costs, but the net profit margin is negative at -16.83%, reflecting consistent net losses. The negative EBIT and EBITDA margins further emphasize operational inefficiencies. Overall, the income statement reflects financial struggles with declining revenue and persistent losses.

Balance Sheet

The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of 1.11, which is reasonable but indicates reliance on debt financing. The equity ratio is 21.31%, suggesting a moderate portion of the company's assets is financed by equity. However, the return on equity is negative, indicating shareholder investments are not yielding profits. The financial position is somewhat stable but reflects risks associated with profitability issues.

Cash Flow

The cash flow statement reveals challenges with generating positive cash flow. The operating cash flow to net income ratio indicates cash outflow from operations, and free cash flow is negative, highlighting the company's struggle to generate cash after capital expenditures. The free cash flow growth rate is also negative, reflecting worsening cash generation. Overall, the cash flow position is weak, raising concerns about liquidity and sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
181.35M	185.24M	191.49M	206.28M	194.60M	176.90M
	Gross Profit
85.20M	91.47M	30.56M	140.58M	144.33M	127.61M
	EBIT
5.13M	2.09M	3.36M	15.11M	13.52M	-1.20M
	EBITDA
-28.32M	12.05M	9.89M	22.48M	15.20M	-13.53M
	Net Income Common Stockholders
-30.52M	-30.30M	-1.57M	36.78M	14.97M	-1.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.98M	9.93M	18.36M	10.36M	11.91M	29.41M
	Total Assets
100.58M	101.78M	122.76M	119.98M	107.86M	119.50M
	Total Debt
23.77M	24.60M	28.51M	22.32M	30.77M	55.06M
	Net Debt
14.79M	14.66M	10.14M	11.96M	18.86M	25.65M
	Total Liabilities
79.16M	80.09M	102.90M	101.18M	122.85M	162.90M
	Stockholders Equity
21.42M	21.69M	19.86M	18.81M	-14.99M	-43.40M
Cash Flow		Free Cash Flow
-4.39M	-6.73M	7.67M	22.99M	-4.81M	-10.54M
	Operating Cash Flow
-1.80M	-2.99M	10.48M	28.79M	-1.76M	-7.84M
	Investing Cash Flow
-3.32M	-3.74M	-2.31M	-11.49M	-2.90M	-775.00K
	Financing Cash Flow
4.15M	-419.00K	-3.22M	-15.82M	-13.41M	7.31M

Harte-Hanks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HHS, the sentiment is Positive. The current price of 4.72 is above the 20-day moving average (MA) of 4.69, above the 50-day MA of 4.68, and below the 200-day MA of 5.95, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 45.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HHS.

Harte-Hanks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	71 Outperform	$713.60M	12.80	9.10%	7.91%	-2.69%	61.73%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
SWAG	56 Neutral	$23.07M	―	-12.15%	―	17.04%	-2188.42%
MCHX	55 Neutral	$75.51M	―	-16.55%	―	-2.67%	21.65%
HHS	46 Neutral	$34.76M	―	-147.49%	―	-4.46%	-3053.30%
FLNT	41 Neutral	$43.83M	―	-123.16%	―	-15.07%	33.40%

Harte-Hanks Corporate Events

Harte Hanks Leadership Transition and Strategic Focus Shift

Harte Hanks announced a leadership transition with CEO Kirk Davis stepping down for personal reasons as of February 14, 2025, and David Fisher appointed as the Interim Chief Operating Officer. This shift aligns with Harte Hanks’ strategic focus on advancing data-driven customer experiences, particularly leveraging AI for enhanced customer engagement. The company is actively seeking a new CEO to further drive innovation and shareholder value.