Horizon Kinetics Holding Corporation (HKHC) AI Stock Analysis

• Market Cap: $440.21M
• Dividend Yield: 1.43%
• Average Volume (3M): 956.00
• Price to Earnings (P/E): 4.6
• Beta (1Y): -0.28
• Revenue Growth: 384.33%
• EPS Growth: N/A
• Country: US
• Employees: 78
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.38
• Shares Outstanding: 18,635,320
• 10 Day Avg. Volume: 1,689
• 30 Day Avg. Volume: 956
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 11.49
• P/FCF Ratio: 55.75
• Enterprise Value/Market Cap: 5.24
• Enterprise Value/Revenue: 31.66
• Enterprise Value/Gross Profit: 79.64
• Enterprise Value/Ebitda: -200.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $32.00 ▲(34.91% Upside)

Horizon Kinetics Holding Corporation's strong financial performance, characterized by impressive revenue growth and profitability, is a key strength. The low P/E ratio and high dividend yield further enhance its attractiveness. However, technical indicators suggest bearish momentum, and challenges with operational efficiency and market volatility, particularly in digital assets, present risks. The positive earnings call sentiment and strategic initiatives provide a balanced outlook.

Positive Factors

Revenue Growth

Consistent revenue growth of 37% YoY indicates strong market demand and effective business strategies, enhancing long-term sustainability.

Cash Flow Generation

Strong cash flow growth supports reinvestment opportunities and financial flexibility, crucial for sustaining long-term operations and growth.

Balance Sheet Health

Low leverage enhances financial stability and reduces risk, providing a solid foundation for future growth and investment opportunities.

Negative Factors

Operational Efficiency

Negative margins indicate inefficiencies that could hinder profitability and growth unless addressed, impacting long-term operational health.

Unrealized Losses

Significant unrealized losses can affect financial statements and investor perception, potentially impacting future investment and growth capacity.

Market Volatility Impact

Exposure to volatile digital assets introduces risk to earnings stability, potentially affecting long-term financial performance and investor confidence.

Horizon Kinetics Holding Corporation Business Overview & Revenue Model

Company Description

Horizon Kinetics Holding Corporation is an employee owned investment manager. The firm primarily provides its services to high net worth individuals. It also caters to individuals, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, and corporations. The firm manages separate client-focused equity and fixed income portfolios. It also manages equity mutual fund for its clients. The firm invests in the public equity, fixed income, and alternative markets across the globe. It typically invests in value stocks of small cap and large cap companies. The firm employs a fundamental analysis to create its portfolios. It conducts in-house research to make its investments. Horizon Kinetics Holding Corporation was founded in 1994 and is based in New York City with additional offices in Charlotte, North Carolina; Summit, New Jersey and White Plains, New York.

How the Company Makes Money

Horizon Kinetics Holding Corporation generates revenue primarily through management fees and performance-based incentives from its investment management services. These fees are earned from the assets under management (AUM) in their various investment funds and vehicles. Additionally, the company may earn revenue from advisory services, research, and consulting for institutional clients. Key revenue streams include long-term client relationships and strategic partnerships with other financial institutions, which help to expand its market reach and client base. The company's focus on innovative investment strategies also enables it to capture unique market opportunities, thereby enhancing its earnings potential.

Horizon Kinetics Holding Corporation Financial Statement Overview

Summary

Horizon Kinetics Holding Corporation demonstrates strong revenue growth and improved profitability, with a solid balance sheet characterized by low leverage. While cash flow generation is strong, operational efficiency needs improvement, as indicated by negative EBIT and EBITDA margins. Overall, the company is on a positive trajectory but must address operational challenges to sustain growth.

Income Statement

Horizon Kinetics Holding Corporation has shown impressive revenue growth, particularly in the most recent year with a 399.75% increase. The net profit margin has improved significantly, turning from negative to a strong 161.72%, indicating a turnaround in profitability. However, the EBIT and EBITDA margins remain negative, suggesting operational inefficiencies that need addressing.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.02, indicating conservative leverage and financial stability. The return on equity is robust at 27.18%, reflecting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Free cash flow has grown significantly by 233.12%, and the free cash flow to net income ratio is nearly 1, indicating strong cash generation relative to net income. However, the operating cash flow to net income ratio is relatively low at 0.24, suggesting potential issues with cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.90M	57.18M	47.26M	2.98M	29.74M	28.96M
Gross Profit	28.98M	18.60M	20.41M	1.37M	12.53M	10.64M
EBITDA	-11.54M	-13.61M	46.00K	-9.29M	-4.71M	-655.00K
Net Income	95.35M	92.47M	-4.49M	-8.85M	-11.09M	-1.55M
Balance Sheet
Total Assets	2.18B	2.03B	1.12B	10.73M	20.87M	33.56M
Cash, Cash Equivalents and Short-Term Investments	62.06M	58.75M	69.59M	49.00K	770.00K	5.00K
Total Debt	8.87M	7.38M	9.50M	6.17M	5.91M	8.80M
Total Liabilities	118.74M	147.69M	28.80M	7.91M	9.33M	11.09M
Stockholders Equity	355.40M	340.17M	209.09M	2.82M	11.54M	22.46M
Cash Flow
Free Cash Flow	-9.07M	11.79M	25.38M	-1.99M	-791.00K	3.56M
Operating Cash Flow	-34.86M	11.84M	25.48M	-1.85M	-322.00K	3.58M
Investing Cash Flow	37.47M	2.14M	782.00K	338.00K	4.38M	-10.10M
Financing Cash Flow	-7.34M	-24.82M	-15.39M	290.00K	-2.79M	5.43M

Horizon Kinetics Holding Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKHC, the sentiment is Negative. The current price of 23.72 is below the 20-day moving average (MA) of 25.80, below the 50-day MA of 28.09, and below the 200-day MA of 35.35, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 26.69 is Positive, neither overbought nor oversold. The STOCH value of 20.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HKHC.

Horizon Kinetics Holding Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCDL	75 Outperform	$675.62M	8.91	8.46%	14.71%	-8.32%	-33.94%
VINP	73 Outperform	$832.30M	27.25	10.40%	4.56%	81.45%	-26.75%
SLRC	72 Outperform	$832.50M	9.24	9.07%	10.80%	-6.30%	-6.92%
HKHC	71 Outperform	$440.21M	4.63	28.39%	1.43%	384.33%	―
FDUS	68 Neutral	$693.22M	8.10	11.92%	11.47%	-12.17%	-14.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NOAH	65 Neutral	$697.84M	7.68	6.53%	11.65%	-7.77%	13.95%

Horizon Kinetics Holding Corporation Corporate Events

Horizon Kinetics Reports Mixed Earnings Amid Growth

Horizon Kinetics Holding Corporation’s recent earnings call presented a mixed sentiment, showcasing substantial revenue and operating income growth, alongside strategic investments and new product launches. However, the positive news was balanced by a quarterly net loss, a goodwill impairment, and potential volatility stemming from digital asset holdings.