NYSE:HHS

Stock Analysis Report

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Executive Summary

Harte Hanks, Inc. provides various multi-channel marketing services in the United States and internationally.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Harte Hanks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HHS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

HHS

4.5%

US Media

3.0%

US Market


1 Year Return

-24.0%

HHS

-0.8%

US Media

9.9%

US Market

Return vs Industry: HHS underperformed the US Media industry which returned -0.8% over the past year.

Return vs Market: HHS underperformed the US Market which returned 9.5% over the past year.


Shareholder returns

HHSIndustryMarket
7 Day-5.0%4.5%3.0%
30 Day8.2%8.4%8.2%
90 Dayn/a-4.4%0.4%
1 Year-24.0%-24.0%0.7%-0.8%12.4%9.9%
3 Year-82.5%-82.5%-2.0%-5.9%31.0%22.3%
5 Year-96.0%-96.3%18.8%9.6%58.1%40.3%

Price Volatility Vs. Market

How volatile is Harte Hanks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Harte Hanks undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HHS ($2.28) is trading below our estimate of fair value ($59.43)

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


Price To Earnings Ratio

PE vs Industry: HHS is unprofitable, so we can't compare its PE Ratio to the Media industry average.

PE vs Market: HHS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HHS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HHS has negative assets, so we can't compare its PB Ratio to the US Media industry average.


Next Steps

Future Growth

How is Harte Hanks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

96.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HHS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: HHS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HHS's is expected to become profitable in the next 3 years.

Revenue vs Market: HHS's revenue is expected to decline over the next 3 years (-10.9% per year).

High Growth Revenue: HHS's revenue is forecast to decline over the next 3 years (-10.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Harte Hanks performed over the past 5 years?

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HHS is currently unprofitable.

Growing Profit Margin: HHS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HHS is unprofitable, but has reduced losses over the past 5 years at a rate of 33.5% per year.

Accelerating Growth: Unable to compare HHS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HHS is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (6.8%).


Return on Equity

High ROE: HHS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Harte Hanks's financial position?


Financial Position Analysis

Short Term Liabilities: HHS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HHS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HHS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HHS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable HHS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HHS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 36.2% per year.


Next Steps

Dividend

What is Harte Hanks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: HHS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HHS'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

Andrew Benett (48yo)

0.58

Tenure

US$910,497

Compensation

Mr. Andrew B. Benett serves as Executive Chairman and Chief Executive Officer at Harte Hanks, Inc. since November 18, 2019. He has been the Global Chief Commercial Officer at Bloomberg Media Group (part of ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD910.50K) is above average for companies of similar size in the US market ($USD593.13K).

Compensation vs Earnings: Insufficient data to compare Andrew's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Benett
CEO & Executive Chairman0.58yrUS$910.50k3.14% $460.6k
Andrew Harrison
President1.08yrsUS$618.95k0.22% $32.4k
Laurilee Kearnes
Chief Financial Officer0.58yrUS$424.11k0.016% $2.3k
John Griffin
Independent Director1.92yrsUS$283.61k0.064% $9.4k
Brian Linscott
Chief Operating Officer0.42yrno datano data
. KN
Senior VP of Marketing Technologyno datano datano data
Carolyn DeLuca
Head of Legal Services1.42yrsno datano data
Rusty Langford
VP of Salesno datano datano data
Nina Hall
Vice President of People & Human Resources1.42yrsno datano data
Bob Kuhl
Managing Director of Direct Marketing17.08yrsno datano data

1.1yrs

Average Tenure

48yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Andrew Benett
CEO & Executive Chairman0.58yrUS$910.50k3.14% $460.6k
John Griffin
Independent Director1.92yrsUS$283.61k0.064% $9.4k
Maureen O'Connell
Independent Director2yrsUS$207.50k0.035% $5.2k
Kenneth Bernhardt
Chairman of Marketing Advisory Board4.42yrsno datano data
David Copeland
Director24.42yrsUS$150.00k2.23% $327.4k
Evan Behrens
Lead Independent Director0.58yrUS$150.00k0.27% $39.9k
Alfred Tobia
Independent Director2.92yrsUS$205.50k0.17% $25.6k
John Deighton
Member of Marketing Advisory Board4.42yrsno datano data
Katherine Lemon
Member of Marketing Advisory Board4.42yrsno datano data
Kimberly Whitler
Member of Marketing Advisory Board4.42yrsno datano data

3.7yrs

Average Tenure

57yo

Average Age

Experienced Board: HHS's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HHS insiders have bought more shares than they have sold 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 2.7%.


Top Shareholders

Company Information

Harte Hanks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harte Hanks, Inc.
  • Ticker: HHS
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$14.687m
  • Shares outstanding: 6.44m
  • Website: https://www.hartehanks.com

Number of Employees


Location

  • Harte Hanks, Inc.
  • 9601 McAllister Freeway
  • Suite 610
  • San Antonio
  • Texas
  • 78216
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HHSNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1993
HHK1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1993

Biography

Harte Hanks, Inc. provides various multi-channel marketing services in the United States and internationally. The company provides agency services, such as customer engagement solutions in direct and digital communications for consumer and business-to-business markets; digital services, including search engine management, display, digital analytics, Website development and design, digital strategy, social media, email, e-commerce, and interactive relationship management services; and database marketing and business-to-business lead generation solutions that offer insight and analytics, customer data integration, and marketing communications tools. It also provides direct marketing services, including digital printing, print on demand, advanced mail optimization, logistics and transportation optimization, tracking, commingling, shrink wrapping, and specialized mailing services, as well as custom kitting, print on demand, product recalls, and freight optimization services through its fulfillment centers; and operates teleservice workstations, which offer contact center solutions comprising speech, voice and video chat, integrated voice response, analytics, social cloud monitoring, and Web self-services. The company provides its services primarily to the retail, B2B, financial services, consumer, and healthcare vertical markets. Harte Hanks, Inc. was founded in 1923 and is headquartered in San Antonio, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 02:08
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.