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HMH Holding Inc. Class A
(NASDAQ:HMH)
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Rating:65Neutral
Price Target:
$21.00
▼(-2.42% Downside)
Action:N/A
Date:08/10/26
HMH scores positively on fundamentals and outlook: strong cash-flow momentum and improved leverage, plus an earnings-call backdrop of maintained guidance, >1x book-to-bill, and improving 2027 visibility. These are partially offset by declining revenue and weaker net income trends, while technicals are currently neutral-to-soft and valuation is moderate with no dividend support.
Positive Factors
Strong free cash flow and conversion
Material TTM free cash flow growth and FCF that is ~2.6x net income indicate durable cash-generation capability. This strengthens internal funding for working capital, supports debt reduction, disciplined CapEx (~2% of revenue) and gives optionality for M&A or strategic investments over the next 2–6 months.
Negative Factors
Declining revenue trend
A multi-period decline in revenue undermines topline momentum and constrains operating leverage. Even with margin control, falling revenue limits sustainable EBITDA growth, reduces spare parts and service upsell opportunities, and lengthens the timeline to restore pre‑downturn earnings levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow and conversion
Material TTM free cash flow growth and FCF that is ~2.6x net income indicate durable cash-generation capability. This strengthens internal funding for working capital, supports debt reduction, disciplined CapEx (~2% of revenue) and gives optionality for M&A or strategic investments over the next 2–6 months.
Read all positive factors
HMH Holding Inc. Class A (HMH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$898.46M
Dividend YieldN/A
Average Volume (3M)321.38K
Price to Earnings (P/E)24.2
Beta (1Y)-1.12
Revenue Growth-9.71%
EPS Growth-5.85%
CountryUS
Employees2,019
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.88
Shares Outstanding12,042,625
10 Day Avg. Volume176,770
30 Day Avg. Volume321,379
Financial Highlights & Ratios
PEG Ratio-1.67
Price to Book (P/B)1.21
Price to Sales (P/S)1.03
P/FCF Ratio11.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.50Price Target Upside32.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.37
Revenue Forecast (FY)$808.47M
HMH Holding Inc. Class A Business Overview & Revenue Model
Company Description
HMH Holding Inc. specializes in delivering essential, purpose-built equipment solutions critical for both offshore and onshore oil and natural gas extraction. Their offerings span drilling apparatus, support services, and comprehensive systems. Th...
HMH Holding Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 12, 2027
Earnings Call Sentiment Positive
The call conveys a constructive long‑term outlook with multiple positive operational and financial indicators: strong order growth (book‑to‑bill >1), substantial service and digital order momentum, improved EBITDA margins, positive free cash flow, healthy liquidity, maintained full‑year guidance, and materially improved visibility into 2027 floater rig years. Offsetting these positives are significant near‑term headwinds: a sharp decline in product revenue, Middle East installation/delivery delays (~$10M headwind), slower short‑cycle repair spending, and one‑time IPO and restructuring expenses. Management characterizes many short‑term issues as timing shifts rather than demand collapse and expects an order/revenue inflection in the back half of the year and into 2027.Positive Updates
Strong Order Growth and Book-to-Bill
Orders of $205 million, up 19% year‑over‑year, with a book‑to‑bill ratio of 1.2x for the quarter, indicating order intake exceeded revenue and healthy demand momentum.
Negative Updates
Severe Product Revenue Decline
Product revenue was $21 million, down 66% year‑over‑year and down 38% sequentially, reflecting a lower starting backlog and delayed equipment deliveries/installation activity (notably in the Middle East).
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Q2-2026 Updates
Positive
Negative
Strong Order Growth and Book-to-Bill
Orders of $205 million, up 19% year‑over‑year, with a book‑to‑bill ratio of 1.2x for the quarter, indicating order intake exceeded revenue and healthy demand momentum.
Read all positive updates
Company Guidance
HMH reiterated full‑year 2026 adjusted EBITDA guidance of $157–$177 million and expects CapEx (excluding development) to be about 2% of revenue, with management forecasting revenue to be meaningfully stronger in H2 versus H1 and another quarter of book‑to‑bill above 1x (strong order rate in Q3 so far); they also report roughly 80% visibility into projected 2027 floater rig years (vs. ~65% a year ago). For context, Q2 results included orders of $205M (book‑to‑bill 1.2x), revenue $171M, adjusted EBITDA $34M (19.8% margin), free cash flow of $22M, $120M cash and ~ $195M total liquidity.HMH Holding Inc. Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 |
|---|---|---|
Income Statement | ||
| Total Revenue | 762.01M | 821.75M |
| Gross Profit | 253.26M | 245.73M |
| EBITDA | 131.64M | 158.40M |
| Net Income | 38.82M | 45.45M |
Balance Sheet | ||
| Total Assets | 1.36B | 1.36B |
| Cash, Cash Equivalents and Short-Term Investments | 119.70M | 96.58M |
| Total Debt | 245.02M | 390.48M |
| Total Liabilities | 516.17M | 657.25M |
| Stockholders Equity | 210.26M | 698.61M |
Cash Flow | ||
| Free Cash Flow | 101.97M | 71.33M |
| Operating Cash Flow | 121.02M | 88.31M |
| Investing Cash Flow | -23.94M | -21.10M |
| Financing Cash Flow | -15.61M | -24.26M |
HMH Holding Inc. Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $959.98M | -615.57 | -0.55% | ― | 3.93% | 99.16% | |
71 Outperform | $1.30B | 26.94 | 32.27% | ― | 36.77% | 125.54% | |
65 Neutral | $898.46M | 24.19 | 6.75% | ― | -9.71% | -5.85% | |
56 Neutral | $538.68M | -4.89 | -17.80% | ― | -2.80% | -1752.76% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | $1.41B | 66.03 | 2.07% | 2.93% | 25.36% | -59.73% | |
50 Neutral | $978.00M | -2.16 | -56.47% | ― | -16.18% | -32.58% |
* General Sector Average
HMH
HMH Holding Inc. Class A
21.25
1.97
10.22%
FTK
Flotek
28.66
17.25
151.18%
FET
Forum Energy Tech
86.31
62.55
263.26%
OIS
Oil States International
9.16
4.10
81.03%
RES
RPC
6.57
2.26
52.40%
ACDC
ProFrac Holding
5.28
1.43
37.14%
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.