Dhi Group, Inc. (NYSE: DHX)

Sector: Technology Industry: Software - Application CIK: 0001393883
Market Cap 127.44 Mn
P/B 1.35
P/E -9.43
P/S 1.00
ROIC (Qtr) -5.72
Div Yield % 0.00
Rev 1y % (Qtr) -9.80
Total Debt (Qtr) 39.18 Mn
Debt/Equity (Qtr) 0.41
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About

DHI Group, Inc., commonly known as DHI, operates in the talent discovery and acquisition segment of the human capital management services market. The company offers artificial intelligence-powered software products, online tools, and services that deliver career marketplaces to candidates and employers globally (DHI Group, Inc.). DHI's main business activities revolve around its two primary brands, Dice and ClearanceJobs, which enable recruiters and hiring managers to efficiently search, match, and connect with highly skilled technologists in specialized...

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Investment thesis

Bull case

  • Strong operating cash flow of 21.10M provides robust 0.54x coverage of total debt 39.18M, indicating excellent debt servicing capability and financial flexibility.
  • Robust free cash flow of 13.79M exceeds capital expenditure of 7.31M by 1.89x, indicating strong organic growth funding capability.
  • R&D investment of 12.84M represents healthy 0.32x of deferred revenue 39.94M, indicating strong future innovation pipeline.
  • Operating cash flow of 21.10M provides strong 30.81x coverage of tax liabilities 685000, showing excellent fiscal position.
  • Cash reserves of 2.91M provide comfortable 4.25x coverage of tax obligations 685000, showing strong fiscal management.

Bear case

  • Operating cash flow of 21.10M barely covers its investment activities of (8.71M), with a coverage ratio of -2.42, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (8.71M) provide weak support for R&D spending of 12.84M, which is -0.68x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 2.91M provide limited coverage of acquisition spending of (1.40M), which is -2.08x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 21.10M provides insufficient coverage of deferred revenue obligations of 39.94M, which is 0.53x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 21.10M shows concerning coverage of stock compensation expenses of 4.88M, with a 4.32 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 235.43 Bn 27.31 5.44 9.50 Bn
2 SHOP Shopify Inc. 147.12 Bn 119.52 12.73 0.19 Bn
3 UBER Uber Technologies, Inc 147.10 Bn 14.63 2.83 12.08 Bn
4 CRM Salesforce, Inc. 122.20 Bn 594.48 15.45 11.14 Bn
5 INTU Intuit Inc. 113.93 Bn 178.01 32.63 6.78 Bn
6 ADBE Adobe Inc. 111.00 Bn 15.57 4.67 6.65 Bn
7 NOW ServiceNow, Inc. 109.54 Bn 62.67 8.25 2.40 Bn
8 ADP Automatic Data Processing Inc 86.44 Bn 20.41 4.07 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.87 2.08
EV to Cash from Ops. EV/CFO 7.80 11.38
EV to Debt EV to Debt 4.20 47.67
EV to EBIT EV/EBIT -13.46 6.78
EV to EBITDA EV/EBITDA 72.98 7.15
EV to Free Cash Flow [EV/FCF] EV/FCF 11.94 14.44
EV to Market Cap EV to Market Cap 1.29 -8.88
EV to Revenue EV/Rev 1.29 4.04
Price to Book Value [P/B] P/B 1.35 3.65
Price to Earnings [P/E] P/E -9.43 -117.75
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.48
Interest Coverage Int. cover (Qtr) -4.97 -43.57
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 47.54 -222.46
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -21.45 281.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2,232.60 -327.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -90.56 30.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -298.85 -213.00
EBT Growth (1y) % EBT 1y % (Qtr) -597.90 -86.84
EPS Growth (1y) % EPS 1y % (Qtr) -3,100.00 108.58
FCF Growth (1y) % FCF 1y % (Qtr) 93.91 6.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -11.08 94.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.68 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.05 3.78
Current Ratio Curr Ratio (Qtr) 0.44 8.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.41 0.14
Interest Cover Ratio Int Coverage (Qtr) -4.97 -43.57
Times Interest Earned Times Interest Earned (Qtr) -4.97 -43.57
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.80 -105.03
EBIT Margin % EBIT Margin % (Qtr) -9.57 -130.16
EBT Margin % EBT Margin % (Qtr) -11.49 -121.17
Gross Margin % Gross Margin % (Qtr) 84.70 58.37
Net Profit Margin % Net Margin % (Qtr) -10.60 -126.13