| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
HDSN Stock Overview
Hudson Technologies, Inc. a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States.
Hudson Technologies Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$7.63 |
| 52 Week High | US$10.76 |
| 52 Week Low | US$2.70 |
| Beta | 1.17 |
| 1 Month Change | -20.93% |
| 3 Month Change | 22.87% |
| 1 Year Change | 124.41% |
| 3 Year Change | 780.55% |
| 5 Year Change | -14.08% |
| Change since IPO | 35.64% |
Recent News & Updates
Hudson Technologies (NASDAQ:HDSN) Has A Pretty Healthy Balance Sheet
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Hudson Technologies May Keep Going Higher After Recent Doubling
Although Hudson Technologies stock has doubled in price since my last call, I believe for several reasons that it can produce a similar return in the next year or two. HDSN stock trades at 7.2x forwarding earnings, and its EV/EBITDA (FWD) is 5.6x - about 55% and 41% less than the sector median, respectively. A fairly sharp HFCs phase-down is planned for 2024, so HDSN is likely to have a tailwind for another 2 years due to the company's leadership. If the requirements for California-based OEMs are transferred to other states, Hudson could significantly expand its addressable market. The management has made it clear that Hudson will continue to deleverage. So I reaffirm my previous "Buy" rating.
Hudson Technologies: AIM Act To Lead To Profitability
The introduction of the AIM Act has resulted in high refrigerant prices, which has pushed Hudson Technologies into the black. The company finished 2021 with an operating profit of $42 million and this could grow to $72 million by 2023 if refrigerant prices remain high. I think that Hudson Technologies should be valued at more than 7x EBITDA for 2023, which translates into $9.70 per share.
Shareholder Returns
| HDSN | US Trade Distributors | US Market | |
|---|---|---|---|
| 7D | -15.5% | 1.4% | 1.6% |
| 1Y | 124.4% | -10.4% | -20.8% |
Return vs Industry: HDSN exceeded the US Trade Distributors industry which returned -9.8% over the past year.
Return vs Market: HDSN exceeded the US Market which returned -20.4% over the past year.
Price Volatility
| HDSN volatility | |
|---|---|
| HDSN Average Weekly Movement | 13.0% |
| Trade Distributors Industry Average Movement | 7.4% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: HDSN is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: HDSN's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1991 | 217 | Brian Coleman | https://www.hudsontech.com |
Hudson Technologies, Inc. a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States. The company’s products and services include refrigerant and industrial gas sales; refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. It also offers SmartEnergy OPS service, a web-based real time continuous monitoring service for facility’s refrigeration systems and other energy systems applications; and Chiller Chemistry and Chill Smart services.
Hudson Technologies Fundamentals Summary
| HDSN fundamental statistics | |
|---|---|
| Market Cap | US$342.66m |
| Earnings (TTM) | US$62.89m |
| Revenue (TTM) | US$243.31m |
5.4x
P/E Ratio1.4x
P/S RatioIs HDSN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HDSN income statement (TTM) | |
|---|---|
| Revenue | US$243.31m |
| Cost of Revenue | US$134.96m |
| Gross Profit | US$108.35m |
| Other Expenses | US$45.46m |
| Earnings | US$62.89m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.40 |
| Gross Margin | 44.53% |
| Net Profit Margin | 25.85% |
| Debt/Equity Ratio | 94.9% |
How did HDSN perform over the long term?
See historical performance and comparisonValuation
Is HDSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for HDSN?
Other financial metrics that can be useful for relative valuation.
| What is HDSN's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$342.66m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.8x |
| Enterprise Value/EBITDA | 5.2x |
| PEG Ratio | -0.2x |
Price to Earnings Ratio vs Peers
How does HDSN's PE Ratio compare to its peers?
| HDSN PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 15x | ||
TRNS Transcat | 37.8x | 10.5% | US$430.6m |
TITN Titan Machinery | 7x | 1.7% | US$506.4m |
KRT Karat Packaging | 13.3x | 13.2% | US$340.3m |
BXC BlueLinx Holdings | 1.7x | -30.2% | US$627.4m |
HDSN Hudson Technologies | 5.4x | -22.0% | US$342.7m |
Price-To-Earnings vs Peers: HDSN is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (15x).
Price to Earnings Ratio vs Industry
How does HDSN's PE Ratio compare vs other companies in the US Trade Distributors Industry?
Price-To-Earnings vs Industry: HDSN is good value based on its Price-To-Earnings Ratio (5.4x) compared to the US Trade Distributors industry average (11.9x)
Price to Earnings Ratio vs Fair Ratio
What is HDSN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 5.4x |
| Fair PE Ratio | 9.4x |
Price-To-Earnings vs Fair Ratio: HDSN is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).
Share Price vs Fair Value
What is the Fair Price of HDSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: HDSN ($7.63) is trading above our estimate of fair value ($1.73)
Significantly Below Fair Value: HDSN is trading above our estimate of fair value.
Price to Earnings Growth Ratio
PEG Ratio: HDSN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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Future Growth
How is Hudson Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-22.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HDSN's earnings are forecast to decline over the next 3 years (-22% per year).
Earnings vs Market: HDSN's earnings are forecast to decline over the next 3 years (-22% per year).
High Growth Earnings: HDSN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HDSN's revenue (13.8% per year) is forecast to grow faster than the US market (8.3% per year).
High Growth Revenue: HDSN's revenue (13.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if HDSN's Return on Equity is forecast to be high in 3 years time
Discover growth companies
Past Performance
How has Hudson Technologies performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
24.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HDSN has a high level of non-cash earnings.
Growing Profit Margin: HDSN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: HDSN has become profitable over the past 5 years, growing earnings by 24% per year.
Accelerating Growth: HDSN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: HDSN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (80.4%).
Return on Equity
High ROE: HDSN's Return on Equity (62.3%) is considered outstanding.
Discover strong past performing companies
Financial Health
How is Hudson Technologies's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: HDSN's short term assets ($152.3M) exceed its short term liabilities ($46.9M).
Long Term Liabilities: HDSN's short term assets ($152.3M) exceed its long term liabilities ($99.1M).
Debt to Equity History and Analysis
Debt Level: HDSN's net debt to equity ratio (89.8%) is considered high.
Reducing Debt: HDSN's debt to equity ratio has increased from 0.1% to 94.9% over the past 5 years.
Debt Coverage: HDSN's debt is not well covered by operating cash flow (9.2%).
Interest Coverage: HDSN's interest payments on its debt are well covered by EBIT (5x coverage).
Balance Sheet
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Dividend
What is Hudson Technologies's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HDSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HDSN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HDSN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HDSN's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as HDSN has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Brian Coleman (59 yo)
2yrs
Tenure
US$1,800,574
Compensation
Mr. Brian F. Coleman serves as Chairman of the Board and Chief Executive Officer of Hudson Technologies, Inc. since June 2020. He was President of Hudson Technologies, Inc. since June 2020. Mr. Coleman ser...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD1.80M) is below average for companies of similar size in the US market ($USD2.81M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HDSN's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: HDSN's board of directors are seasoned and experienced ( 11.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HDSN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.
Top Shareholders
Company Information
Hudson Technologies, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Hudson Technologies, Inc.
- Ticker: HDSN
- Exchange: NasdaqCM
- Founded: 1991
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Implied Market Cap: US$342.661m
- Shares outstanding: 44.91m
- Website: https://www.hudsontech.com
Number of Employees
Location
- Hudson Technologies, Inc.
- 300 Tice Boulevard
- Suite 290
- Woodcliff Lake
- New Jersey
- 7677
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/29 00:00 |
| End of Day Share Price | 2022/06/29 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.