Hudson Global (HSON) AI Stock Analysis

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Hudson Global

(NASDAQ:HSON)

46Neutral

Hudson Global's overall stock score reflects significant financial and technical challenges. The declining revenues and negative earnings are major concerns, compounded by weak cash flow. While there are strategic initiatives and some regional growth, the overall sentiment remains cautious. Technical indicators suggest bearish momentum, and the valuation metrics further detract from the investment appeal.

Hudson Global (HSON) vs. S&P 500 (SPY)

Market Cap

$27.56M

Dividend YieldN/A

Average Volume (3M)3.72K

Price to Earnings (P/E)―

Beta (1Y)0.94

Revenue Growth-13.19%

EPS Growth-320.59%

CountryUS

Employees980

SectorIndustrials

Sector Strength64

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)-1.58

Shares Outstanding2,750,735

10 Day Avg. Volume1,004

30 Day Avg. Volume3,717

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.20

Price to Cash Flow (P/CF)3.50

P/FCF Ratio3.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Hudson Global Business Overview & Revenue Model

Company DescriptionHudson Global, Inc. (HSON) is a recruitment and talent management solutions company that operates primarily in the professional staffing and recruitment industry. The company provides specialized recruitment outsourcing solutions, talent management, and recruitment process outsourcing (RPO) services to a diverse range of industries, including finance, technology, healthcare, and consumer goods. Hudson Global's core services focus on delivering customized recruitment strategies to help organizations find, attract, and retain top talent, thereby enhancing their operational efficiency and workforce effectiveness.

How the Company Makes MoneyHudson Global generates revenue primarily through its recruitment process outsourcing (RPO) services, where it partners with client organizations to handle all or part of their recruitment activities. The company earns fees based on successful placements, management of recruitment processes, and consulting services provided. Hudson Global also benefits from long-term contracts with various clients, which provide a stable source of recurring revenue. Additionally, the company may engage in strategic partnerships with technology providers or industry-specific firms to enhance service delivery and expand its market reach, further contributing to its earnings.

Hudson Global Financial Statement Overview

Summary

Hudson Global faces significant financial challenges. The income statement indicates declining revenues and profitability issues. The balance sheet shows low leverage and a strong equity position, but profitability remains a concern. Cash flow generation is weak, suggesting liquidity pressures. Strategic measures are needed to improve financial performance and stability.

Income Statement

Neutral

Hudson Global's income statement shows a challenging year with declining revenues and negative net income. The gross profit margin is 100% due to matching revenues and gross profit, but this is offset by negative EBIT and EBITDA margins, indicating operational inefficiencies. The revenue growth rate is negative at -13.18% from 2023 to 2024, reflecting a downturn in sales.

Balance Sheet

Positive

The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.03, indicating low leverage. However, the return on equity is negative due to net losses, which is a concern. The equity ratio is strong at 76.90%, suggesting a solid equity base relative to assets, providing some financial resilience.

Cash Flow

Negative

Cash flow analysis reveals a concerning scenario with a negative free cash flow of -$2.81 million and negative operating cash flow. The free cash flow to net income ratio is not meaningful due to negative figures. The company needs to improve cash generation to support operations and growth.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
140.06M	161.34M	200.92M	169.21M	101.45M
	Gross Profit
140.06M	80.27M	99.21M	68.16M	39.08M
	EBIT
-3.81M	1.38M	9.34M	4.39M	-2.65M
	EBITDA
-2.45M	2.85M	10.71M	4.99M	-2.47M
	Net Income Common Stockholders
-4.77M	2.20M	7.13M	3.23M	-1.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.01M	22.61M	27.12M	21.71M	25.81M
	Total Assets
52.58M	60.96M	67.94M	61.24M	45.39M
	Total Debt
1.06M	1.43M	1.94M	1.73M	214.00K
	Net Debt
-15.95M	-21.18M	-25.19M	-19.98M	-25.59M
	Total Liabilities
12.15M	12.40M	22.15M	21.93M	11.11M
	Stockholders Equity
40.43M	48.55M	45.79M	39.32M	34.28M
Cash Flow		Free Cash Flow
-2.81M	216.00K	8.95M	2.22M	-1.45M
	Operating Cash Flow
-2.79M	315.00K	9.45M	2.51M	-1.43M
	Investing Cash Flow
1.06M	-2.15M	-1.33M	-6.30M	-4.02M
	Financing Cash Flow
-3.10M	-2.45M	-2.04M	-4.00K	-927.00K

Hudson Global Technical Analysis

Technical Analysis Sentiment

Negative

Last Price9.65

Price Trends

50DMA

11.28

Negative

100DMA

12.61

Negative

200DMA

14.67

Negative

Market Momentum

MACD

-0.21

Negative

RSI

39.84

Neutral

STOCH

54.32

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSON, the sentiment is Negative. The current price of 9.65 is below the 20-day moving average (MA) of 10.42, below the 50-day MA of 11.28, and below the 200-day MA of 14.67, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 54.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSON.

Hudson Global Risk Analysis

Hudson Global disclosed 26 risk factors in its most recent earnings report. Hudson Global reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Hudson Global Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSP	77 Outperform	$3.15B	35.35	95.48%	2.83%	1.47%	-45.91%
KFY	74 Outperform	$3.14B	13.07	13.92%	2.61%	-3.27%	62.57%
MAN	68 Neutral	$2.44B	17.37	6.67%	5.90%	-5.61%	77.92%
Sector *	62 Neutral	$7.16B	12.21	3.05%	3.43%	3.62%	-14.48%
RHI	60 Neutral	$4.84B	19.37	16.96%	4.61%	-9.33%	-37.06%
KELYA	56 Neutral	$411.49M	11.43	-0.05%	2.54%	-10.42%	-101.51%
HSON	46 Neutral	$27.56M	―	-10.72%	―	-13.19%	-320.59%

* Industrials Sector Average

Performance Comparison

HSON

Hudson Global

9.61

-7.79

-44.77%

NSP

Insperity

78.45

-27.11

-25.68%

KELYA

Kelly Services

11.46

-12.69

-52.55%

KFY

Korn Ferry

60.29

-2.69

-4.27%

MAN

ManpowerGroup

48.72

-24.04

-33.04%

RHI

Robert Half

46.33

-27.07

-36.88%

Hudson Global Earnings Call Summary

Earnings Call Date: Mar 14, 2025 | % Change Since: -5.67% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Neutral

The call highlighted strategic investments and growth in certain regions, but was overshadowed by a decline in overall revenue and net income, with specific challenges in Asia Pacific and EMEA contributing to the negative financial performance.

Highlights

Modest Improvement in Adjusted Net Revenue

Adjusted net revenue increased by 5.7% year over year in constant currency for the fourth quarter of 2024.

Significant Growth in Americas Business

Q4 2024 revenue for the Americas business increased by 18%, with adjusted net revenue up 5% year over year in constant currency.

Strategic Investments and Expansion

Invested $3.4 million in sales, marketing, and technology above maintenance levels. Expanded service offerings and made strategic hires, including the launch of a digital division.

Recognition in Industry Rankings

Recognized for the sixteenth consecutive year in HRO Today magazine's Baker's Dozen list and maintained top positions in APAC and EMEA regions.

Lowlights

Overall Revenue Decline

Fourth quarter 2024 revenue was $33.6 million, down 2% year over year in constant currency.

Net Loss Reported

Reported a net loss of $0.6 million, or $0.20 per diluted share, compared to net income of $0.7 million or $0.23 per diluted share in the fourth quarter of the previous year.

Decline in Asia Pacific Revenue

Q4 2024 revenue for the Asia Pacific business decreased 10% despite a 6% increase in adjusted net revenue year over year in constant currency.

Decrease in EMEA Adjusted EBITDA

Q4 2024 adjusted EBITDA for EMEA was $0.2 million, down from $0.6 million in the fourth quarter of 2023.

Company Guidance

During the Hudson Global Conference Call for the fourth quarter of 2024, the company reported several key financial metrics and guidance for future growth. The fourth quarter revenue was $33.6 million, a 2% decrease year over year in constant currency, while adjusted net revenue was $17.6 million, marking a 5.7% increase. Adjusted EBITDA increased to $0.9 million from $0.1 million the previous year. The company reported a net loss of $0.6 million, or $0.20 per diluted share, compared to a net income of $0.7 million, or $0.23 per diluted share, in the same period last year. Regional performance varied, with Americas revenue up 18% and adjusted EBITDA rising to $0.5 million. Asia Pacific saw a 10% revenue decline, but a 6% increase in adjusted net revenue, while EMEA's revenue and adjusted net revenue increased by 7% and 5%, respectively. The company generated $2.0 million in cash flow from operations and ended the year with $17.7 million in cash. Hudson Global plans to focus on growth through strategic investments in sales, marketing, and technology, as well as expanding its RPO services, with a goal of achieving 60,000 annual hires and growing RPO clients by 50% over the next three years.

Hudson Global Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Hudson Global Announces 2025 Executive Incentive Plans

Neutral

Jan 29, 2025

On January 24, 2025, Hudson Global, Inc.’s Compensation Committee approved the 2025 CEO/CFO Incentive Compensation Plan for CEO Jeffrey E. Eberwein and CFO Matthew K. Diamond, offering equity and cash incentives based on achieving corporate objectives such as net revenue and EBITDA targets. The plan includes a target cash opportunity of $100,000 each, with restricted stock unit opportunities set at $470,000 and $150,000 respectively. Additionally, the Committee set revenue and EBITDA targets for Jake Zabkowicz, Global CEO of Hudson RPO Holdings LLC, a subsidiary, with incentives contingent on meeting these goals, and also approved a broader 2025 Incentive Compensation Program for other executives to align with group and division objectives.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.