Harte-Hanks (HHS) AI Stock Analysis

• Market Cap: $24.10M
• Dividend Yield: N/A
• Average Volume (3M): 202.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: -11.07%
• EPS Growth: 82.06%
• Country: US
• Employees: 1,715
• Sector: Industrials
• Sector Strength: 72
• Industry: Advertising Agencies
• EPS (TTM): -0.22
• Shares Outstanding: 7,414,794
• 10 Day Avg. Volume: 10,927
• 30 Day Avg. Volume: 202,649
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -5.58
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 6.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): $195.40M

• Rating: 47 Neutral
• Price Target: $3.50 ▼(-7.16% Downside)

Harte-Hanks' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. Technical analysis provides some short-term positive signals, but the long-term outlook remains cautious. The negative P/E ratio and lack of dividend yield further weigh down the valuation score, contributing to a lower overall score.

Positive Factors

Operational Efficiency

A stable gross profit margin indicates that Harte-Hanks maintains effective cost management, which can support profitability as revenues stabilize.

Service Diversification

Diverse service offerings provide Harte-Hanks with multiple revenue streams, reducing reliance on any single market and enhancing resilience against industry fluctuations.

Technology Partnerships

Strategic partnerships with technology firms can improve Harte-Hanks' competitive position, offering advanced solutions that attract and retain clients.

Negative Factors

Declining Revenue

Continued revenue decline suggests challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

High Leverage

Significant leverage can strain financial resources, limiting Harte-Hanks' ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Profitability

Ongoing losses reflect operational challenges and may hinder Harte-Hanks' ability to generate sustainable profits, affecting long-term financial health.

Harte-Hanks Business Overview & Revenue Model

Company Description

Harte-Hanks (HHS) is a global marketing services company specializing in data-driven multichannel marketing solutions. The company operates primarily in the marketing and advertising sector, offering services that include customer engagement, direct marketing, and data analytics. Harte-Hanks leverages its extensive database and technology platform to provide targeted marketing campaigns, helping clients enhance customer relationships and drive sales across various industries.

How the Company Makes Money

Harte-Hanks generates revenue through a combination of service contracts and project-based engagements with its clients. Key revenue streams include direct marketing services, where the company charges clients for campaign execution and analytics; customer data solutions, which involve selling access to its databases and insights; and strategic consulting services that advise clients on marketing strategies and customer engagement. Additionally, Harte-Hanks has established partnerships with technology providers to enhance its service offerings, which can lead to increased client retention and new business opportunities.

Harte-Hanks Financial Statement Overview

Summary

Harte-Hanks faces significant financial challenges, with declining revenues, negative profitability, and high leverage. While there are some operational efficiencies, the company's financial stability and cash flow health are concerning, indicating potential risks moving forward.

Income Statement

Harte-Hanks has experienced declining revenue over the past few years, with a negative revenue growth rate of -4.64% in the TTM. The company has struggled with profitability, as indicated by negative net profit margins and EBIT margins. However, the gross profit margin remains relatively stable at 55.39% in the TTM, suggesting some operational efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.09 in the TTM, indicating significant leverage. Return on equity is negative, reflecting ongoing losses. The equity ratio is low, which could pose risks in terms of financial stability.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow growth and a negative operating cash flow to net income ratio. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.84M	185.24M	191.49M	206.28M	194.60M	176.90M
Gross Profit	92.27M	128.60M	131.92M	140.58M	144.33M	127.61M
EBITDA	6.56M	12.05M	13.28M	22.48M	19.72M	-13.53M
Net Income	-5.45M	-30.30M	-1.57M	36.78M	14.97M	-1.69M
Balance Sheet
Total Assets	92.71M	101.78M	131.07M	119.98M	107.86M	119.50M
Cash, Cash Equivalents and Short-Term Investments	6.51M	9.93M	18.36M	10.36M	11.91M	29.41M
Total Debt	21.76M	24.60M	28.51M	22.32M	30.77M	55.06M
Total Liabilities	72.83M	80.09M	111.22M	101.18M	122.85M	162.90M
Stockholders Equity	19.88M	21.69M	19.86M	18.81M	-14.99M	-43.40M
Cash Flow
Free Cash Flow	381.00K	-6.73M	7.67M	22.99M	-4.81M	-10.54M
Operating Cash Flow	2.34M	-2.99M	10.48M	28.79M	-1.76M	-7.84M
Investing Cash Flow	-1.96M	-3.74M	-2.31M	-11.49M	-2.90M	-775.00K
Financing Cash Flow	561.00K	-419.00K	-3.22M	-15.82M	-13.41M	7.31M

Harte-Hanks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.77 is above the 20-day moving average (MA) of 2.96, above the 50-day MA of 3.34, and below the 200-day MA of 4.02, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.33 is Neutral, neither overbought nor oversold. The STOCH value of 90.64 is Negative, 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	68 Neutral	$918.61M	11.19	12.96%	5.88%	-0.94%	47.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SWAG	52 Neutral	$35.07M	-14.80	-5.04%	―	44.40%	48.49%
HHS	47 Neutral	$24.10M	―	-26.62%	―	-11.07%	82.06%
MCHX	45 Neutral	$76.43M	-16.17	-14.61%	―	-4.32%	-13.99%
FLNT	38 Underperform	$56.99M	-1.47	-127.41%	―	-18.94%	37.05%

Harte-Hanks Corporate Events

Harte Hanks Reports Q3 2025 Results Amid New Partnerships

Harte Hanks, Inc. is a global customer experience company that specializes in providing CX strategy, data-driven analytics, and seamless program execution to help businesses better understand and engage their customers. Operating across Customer Care, Fulfillment & Logistics, and Marketing Services, Harte Hanks partners with leading brands worldwide.