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HDSN

Hudson Technologies NasdaqCM:HDSN Stock Report

Last Price

US$7.63

Market Cap

US$342.7m

7D

-15.5%

1Y

124.4%

Updated

29 Jun, 2022

Data

Company Financials +
HDSN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Hudson Technologies
Historical stock prices
Current Share PriceUS$7.63
52 Week HighUS$10.76
52 Week LowUS$2.70
Beta1.17
1 Month Change-20.93%
3 Month Change22.87%
1 Year Change124.41%
3 Year Change780.55%
5 Year Change-14.08%
Change since IPO35.64%

Recent News & Updates

Jun 23
Hudson Technologies (NASDAQ:HDSN) Has A Pretty Healthy Balance Sheet

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...

Jun 21

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.

Apr 06

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

HDSNUS Trade DistributorsUS Market
7D-15.5%1.4%1.6%
1Y124.4%-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

Is HDSN's price volatile compared to industry and market?
HDSN volatility
HDSN Average Weekly Movement13.0%
Trade Distributors Industry Average Movement7.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
1991217Brian Colemanhttps://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

How do Hudson Technologies's earnings and revenue compare to its market cap?
HDSN fundamental statistics
Market CapUS$342.66m
Earnings (TTM)US$62.89m
Revenue (TTM)US$243.31m

5.4x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HDSN income statement (TTM)
RevenueUS$243.31m
Cost of RevenueUS$134.96m
Gross ProfitUS$108.35m
Other ExpensesUS$45.46m
EarningsUS$62.89m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.40
Gross Margin44.53%
Net Profit Margin25.85%
Debt/Equity Ratio94.9%

How did HDSN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is HDSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation 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.

HDSN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA5.2x
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
The above table shows the PE ratio for HDSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15x
TRNS Transcat
37.8x10.5%US$430.6m
TITN Titan Machinery
7x1.7%US$506.4m
KRT Karat Packaging
13.3x13.2%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.

HDSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.4x
Fair PE Ratio9.4x

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

1/6

Future 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


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Past Performance

How has Hudson Technologies performed over the past 5 years?

Past Performance Score

3/6

Past 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.


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Financial Health

How is Hudson Technologies's financial position?

Financial Health Score

3/6

Financial 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

0/6

Dividend 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.


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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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.