Heritage Global Inc

Heritage Global Inc maintains a strong liquidity position, with cash and equivalents amounting to $24.58 million, representing 27.3% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, indicating a solid ability to meet short-term obligations. The current ratio of 1.99 further supports this, showing that the company has nearly twice the current assets to cover its current liabilities.

In terms of profitability, Heritage Global Inc reports a net income of $2.50 million and an operating income of $3.54 million. The return on equity (ROE) is 3.79%, and the return on assets (ROA) is 2.77%. These figures are below the industry median for ROE and ROA, suggesting that the company is underperforming its peers in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the risk of revenue volatility due to market-specific or regulatory changes. The absence of multiple revenue streams or geographic regions could limit the company's ability to buffer against downturns in its primary market.

Looking ahead, Heritage Global Inc is projected to experience a modest growth trajectory. The company's revenue is expected to increase by 5.2% in the current fiscal year and by 4.8% in the next fiscal year. These growth rates are in line with the industry average, indicating a stable but not aggressive expansion strategy. The company's capital expenditure is minimal, with a negative value of $99,000, suggesting a focus on maintaining rather than expanding its asset base.

The risk assessment for Heritage Global Inc indicates a low level of liquidity and dilution risk. The company has no immediate filing-based liquidity or dilution flags, and the dilution potential is low. The debt-to-equity ratio of 0.1 suggests a conservative capital structure with limited leverage. However, the price-to-book ratio of 0.64 indicates that the company's market value is significantly lower than its book value, which may signal undervaluation or underlying asset concerns.

Recent events and filings for Heritage Global Inc show a stable financial environment with no significant adverse developments. The company's recent financial reports and investor relations communications do not indicate any material risks or strategic shifts. Analysts have provided a mean price target of $3.42, with a median of $3.35, suggesting a positive outlook despite the current market price of $1.22.

Analysts project 186.6% upside to a mean price target of $3.43, signaling strong market confidence in future performance.

The stock trades at 0.64x tangible book value, offering a significant discount to its underlying equity value of $65.8 million.

Revenue grew at an 18.6% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Cash conversion of 3.1 is best-in-class compared to the cohort median of 0.31, highlighting superior operational efficiency.

Low leverage with a debt-to-equity ratio of 0.10 provides a strong balance sheet foundation for future growth.

Return on equity of 3.79% trails the cohort median of 4.13%, suggesting less efficient capital utilization than peers.

Revenue $12.7M, −5,5% YoY; Operating income −64,0% YoY.

• ▍Revenue $12.7M, −5,5% YoY
• ▍Operating income −64,0% YoY
• ▍Operating margin 4.0%

Revenue $11.9M, +10,1% YoY; Operating income −47,8% YoY.

• ▍Revenue $11.9M, +10,1% YoY
• ▍Operating income −47,8% YoY
• ▍Net income +248,3% YoY
• ▍Free cash flow −249,1% YoY
• ▍Net margin 2.5%

Revenue $11.4M, +9,1% YoY; Operating income −12,0% YoY.

• ▍Revenue $11.4M, +9,1% YoY
• ▍Operating income −12,0% YoY
• ▍Net income −46,3% YoY
• ▍Free cash flow −65,9% YoY
• ▍Net margin 5.1%

Revenue $14.3M, +19,0% YoY; Operating income −37,0% YoY.

• ▍Revenue $14.3M, +19,0% YoY
• ▍Operating income −37,0% YoY
• ▍Net income −34,4% YoY
• ▍Free cash flow −37,8% YoY
• ▍Net margin 11.4%

Revenue $13.5M; Operating income $1.4M.

• ▍Revenue $13.5M
• ▍Operating income $1.4M
• ▍Net margin 7.9%

Revenue $10.8M; Operating income $1.5M.

• ▍Revenue $10.8M
• ▍Operating income $1.5M
• ▍Net margin -1.9%

Revenue $10.4M; Operating income $1.5M.

• ▍Revenue $10.4M
• ▍Operating income $1.5M
• ▍Net margin 10.5%

Revenue $12.0M; Operating income $3.5M.

• ▍Revenue $12.0M
• ▍Operating income $3.5M
• ▍Net margin 20.8%

Revenue $51.0M, +12,4% YoY; Operating income −37,0% YoY.

• ▍Revenue $51.0M, +12,4% YoY
• ▍Operating income −37,0% YoY
• ▍Net income −30,8% YoY
• ▍Free cash flow −177,6% YoY
• ▍Net margin 7.0%

Revenue $45.4M, −25,1% YoY; Operating income −36,7% YoY.

• ▍Revenue $45.4M, −25,1% YoY
• ▍Operating income −36,7% YoY
• ▍Net income −58,5% YoY
• ▍Free cash flow −55,7% YoY
• ▍Net margin 11.4%

Revenue $60.5M, +29,1% YoY; Operating income +28,8% YoY.

• ▍Revenue $60.5M, +29,1% YoY
• ▍Operating income +28,8% YoY
• ▍Net income −19,5% YoY
• ▍Free cash flow −19,5% YoY
• ▍Net margin 20.6%

Revenue $46.9M, +81,9% YoY; Operating income +268,9% YoY.

• ▍Revenue $46.9M, +81,9% YoY
• ▍Operating income +268,9% YoY
• ▍Net income +407,5% YoY
• ▍Free cash flow +642,4% YoY
• ▍Net margin 33.0%