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HGBL

Heritage GlobalNasdaqCM:HGBL Stock Report

Market Cap

US$65.7m

7D

-4.7%

1Y

5.2%

Updated

27 Oct, 2021

Data

Company Financials +
HGBL fundamental analysis
Snowflake Score
Valuation6/6
Future Growth5/6
Past Performance5/6
Financial Health6/6
Dividends0/6

HGBL Overview

Heritage Global, Inc. operates as an asset services company with focus on financial and industrial asset transactions.

Price History & Performance

Summary of all time highs, changes and price drops for Heritage Global
Historical stock prices
Current Share PriceUS$1.81
52 Week HighUS$1.48
52 Week LowUS$4.20
Beta1.32
1 Month Change-9.50%
3 Month Change-5.73%
1 Year Change5.23%
3 Year Change147.95%
5 Year Change285.93%
Change since IPO-94.83%

Recent News & Updates

Sep 08

Heritage Global: Strategic Acquisition And Insiders Buying

A precipitous decline in Heritage Global's stock price challenged my bull thesis and had me scratching my head. Was my data wrong? The majority of the decline is owing to a single large shareholder reducing his ownership stake in the aftermath of resigning from the board. A strategic acquisition was announced, and then insiders started buying heavily. The thesis is still intact.

Jun 16

Heritage Global to join Russell Microcap Index

Heritage Global (HGBL) will join the Russell Microcap Index following the 2021 Russell indexes annual reconstitution, effective June 28 after the U.S. market opens. "We believe our addition to the index is a validation of our continued success as a leader in the financial and industrial asset transactions industry and we look forward to the heightened awareness our inclusion on the Russell Microcap Index will bring to our stock and potential future opportunities that will arise as a result." said Heritage CEO Ross Dove.Source: Press

Jan 11

Heritage Global (HGBL) Investor Presentation - Slideshow

The following slide deck was published by Heritage Global Inc. in conjunction with this event.

Shareholder Returns

HGBLUS Capital MarketsUS Market
7D-4.7%1.4%-0.3%
1Y5.2%74.2%37.0%

Return vs Industry: HGBL underperformed the US Capital Markets industry which returned 71.9% over the past year.

Return vs Market: HGBL underperformed the US Market which returned 33.4% over the past year.

Price Volatility

Is HGBL's price volatile compared to industry and market?
HGBL volatility
HGBL Beta1.32
Industry Beta1.19
Market Beta1

Stable Share Price: HGBL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HGBL's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198346Ross Dovehttps://www.hginc.com

Heritage Global, Inc. operates as an asset services company with focus on financial and industrial asset transactions. The company provides market making, acquisitions, dispositions, valuations, and secured lending services. It focuses on identifying, valuing, acquiring, and monetizing underlying tangible and intangible assets.

Heritage Global Fundamentals Summary

How do Heritage Global's earnings and revenue compare to its market cap?
HGBL fundamental statistics
Market CapUS$65.68m
Earnings (TTM)US$9.20m
Revenue (TTM)US$28.10m

7.1x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HGBL income statement (TTM)
RevenueUS$28.10m
Cost of RevenueUS$10.33m
Gross ProfitUS$17.77m
ExpensesUS$8.57m
EarningsUS$9.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.25
Gross Margin63.23%
Net Profit Margin32.74%
Debt/Equity Ratio0%

How did HGBL perform over the long term?

See historical performance and comparison

Valuation

Is Heritage Global undervalued compared to its fair value and its price relative to the market?

37.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HGBL ($1.81) is trading below our estimate of fair value ($2.9)

Significantly Below Fair Value: HGBL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HGBL is good value based on its PE Ratio (7.1x) compared to the US Capital Markets industry average (16.7x).

PE vs Market: HGBL is good value based on its PE Ratio (7.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: HGBL is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: HGBL is good value based on its PB Ratio (2.1x) compared to the US Capital Markets industry average (61.4x).


Future Growth

How is Heritage Global forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HGBL's forecast earnings growth (29.2% per year) is above the savings rate (2%).

Earnings vs Market: HGBL's earnings (29.2% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HGBL's revenue (24.4% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: HGBL's revenue (24.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HGBL's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Heritage Global performed over the past 5 years?

67.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HGBL has a high level of non-cash earnings.

Growing Profit Margin: HGBL's current net profit margins (32.7%) are higher than last year (17.2%).


Past Earnings Growth Analysis

Earnings Trend: HGBL has become profitable over the past 5 years, growing earnings by 67.8% per year.

Accelerating Growth: HGBL's earnings growth over the past year (137.7%) exceeds its 5-year average (67.8% per year).

Earnings vs Industry: HGBL earnings growth over the past year (137.7%) exceeded the Capital Markets industry 77.6%.


Return on Equity

High ROE: HGBL's Return on Equity (29.7%) is considered high.


Financial Health

How is Heritage Global's financial position?


Financial Position Analysis

Short Term Liabilities: HGBL's short term assets ($22.0M) exceed its short term liabilities ($9.3M).

Long Term Liabilities: HGBL's short term assets ($22.0M) exceed its long term liabilities ($2.5M).


Debt to Equity History and Analysis

Debt Level: HGBL is debt free.

Reducing Debt: HGBL has no debt compared to 5 years ago when its debt to equity ratio was 102.1%.

Debt Coverage: HGBL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HGBL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Heritage Global current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HGBL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HGBL'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 HGBL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HGBL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HGBL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Ross Dove (68 yo)

6.42yrs

Tenure

US$412,029

Compensation

Mr. Ross M. Dove serves as Global Chief Executive Officer of Heritage Global Inc. since January 1, 2021 and served as its President until 2021. He has served as Co-Managing Partner of Heritage Global Partn...


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD412.03K) is about average for companies of similar size in the US market ($USD541.00K).

Compensation vs Earnings: Ross's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HGBL's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: HGBL's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HGBL insiders have sold more shares than they have bought 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 5.3%.


Top Shareholders

Company Information

Heritage Global Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Heritage Global Inc.
  • Ticker: HGBL
  • Exchange: NasdaqCM
  • Founded: 1983
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$65.685m
  • Shares outstanding: 36.29m
  • Website: https://www.hginc.com

Number of Employees


Location

  • Heritage Global Inc.
  • 12625 High Bluff Drive
  • Suite 305
  • San Diego
  • California
  • 92130
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 22:56
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.