NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.
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Highlights from the ratings report include:
- Although HSON's debt-to-equity ratio of 0.01 is very low, it is currently higher than that of the industry average. To add to this, HSON has a quick ratio of 1.90, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to -$7.24 million or 29.89% when compared to the same quarter last year. Despite an increase in cash flow, HUDSON GLOBAL INC's cash flow growth rate is still lower than the industry average growth rate of 58.50%.
- HUDSON GLOBAL INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HUDSON GLOBAL INC turned its bottom line around by earning $0.34 versus -$0.17 in the prior year. For the next year, the market is expecting a contraction of 148.5% in earnings (-$0.17 versus $0.34).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Professional Services industry. The net income has significantly decreased by 53583.3% when compared to the same quarter one year ago, falling from -$0.01 million to -$3.22 million.
Hudson Global, Inc. provides specialized professional-level recruitment and related talent solutions worldwide. The company provides permanent recruitment services; and contract consulting services, including project management, interim management, and professional contract staffing services. The company has a P/E ratio of 14.7, equal to the average diversified services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Hudson Global has a market cap of $117 million and is part of the
industry. Shares are down 26.5% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.