Heritage Global Inc.
Heritage Global Inc. Fundamental Analysis
Heritage Global Inc. (HGBL) shows weak financial fundamentals with a PE ratio of 14.85, profit margin of 6.18%, and ROE of 4.69%. The company generates $0.1B in annual revenue with weak year-over-year growth of -25.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 13.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HGBL's fundamental strength across five key dimensions:
Efficiency Score
WeakHGBL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHGBL trades at attractive valuation levels.
Growth Score
WeakHGBL faces weak or negative growth trends.
Financial Health Score
ExcellentHGBL maintains a strong and stable balance sheet.
Profitability Score
WeakHGBL struggles to sustain strong margins.
Key Financial Metrics
Is HGBL Expensive or Cheap?
P/E Ratio
HGBL trades at 14.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HGBL's PEG of -1.28 indicates potential undervaluation.
Price to Book
The market values Heritage Global Inc. at 0.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.06 times EBITDA. This is generally considered low.
How Well Does HGBL Make Money?
Net Profit Margin
For every $100 in sales, Heritage Global Inc. keeps $6.18 as profit after all expenses.
Operating Margin
Core operations generate 12.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.69 in profit for every $100 of shareholder equity.
ROA
Heritage Global Inc. generates $3.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heritage Global Inc. generates limited operating cash flow of $-957.35K, signaling weaker underlying cash strength.
Free Cash Flow
Heritage Global Inc. generates weak or negative free cash flow of $-8.87M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.26 in free cash annually.
FCF Yield
HGBL converts -19.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HGBL Stacks Against Its Sector Peers
| Metric | HGBL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.85 | 18.86 | Better (Cheaper) |
| ROE | 4.69% | 847.00% | Weak |
| Net Margin | 6.18% | 4202.00% | Weak |
| Debt/Equity | 0.03 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 2.29 | 667.17 | Strong Liquidity |
| ROA | 3.56% | -21543.00% (disorted) | Weak |
HGBL outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Heritage Global Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.23%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
2.91%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
655.32%
Industry Style: Value, Dividend, Cyclical
High Growth