Dhi Group, Inc. (NYSE: DHX)

Sector: Technology Industry: Software - Application CIK: 0001393883
Market Cap 75.26 Mn
P/B 0.77
P/E -5.60
P/S 0.57
ROIC (Qtr) -7.83
Div Yield % 0.00
Rev 1y % (Qtr) -8.96
Total Debt (Qtr) 39.49 Mn
Debt/Equity (Qtr) 0.41

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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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 18.25M provides robust 0.46x coverage of total debt 39.49M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 18.25M provides strong 19.56x coverage of tax liabilities 933000, showing excellent fiscal position.
  • R&D investment of 14.44M represents healthy 0.35x of deferred revenue 40.98M, indicating strong future innovation pipeline.
  • Cash reserves of 2.30M provide comfortable 2.46x coverage of tax obligations 933000, showing strong fiscal management.
  • Strong R&D investment of 14.44M at 1.69x of capex 8.56M shows balanced investment in innovation and infrastructure.

Bear case

  • Operating cash flow of 18.25M barely covers its investment activities of (9.96M), with a coverage ratio of -1.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (9.96M) provide weak support for R&D spending of 14.44M, which is -0.69x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 2.30M provide limited coverage of acquisition spending of (1.40M), which is -1.64x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 18.25M provides insufficient coverage of deferred revenue obligations of 40.98M, which is 0.45x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 18.25M shows concerning coverage of stock compensation expenses of 5.86M, with a 3.12 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 2.65
EV to Cash from Ops. EV/CFO 6.16 13.37
EV to Debt EV to Debt 2.85 57.69
EV to EBIT EV/EBIT -8.70 19.12
EV to EBITDA EV/EBITDA 41.41 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 11.61 14.69
EV to Market Cap EV to Market Cap 1.49 -92.28
EV to Revenue EV/Rev 0.86 4.60
Price to Book Value [P/B] P/B 0.77 4.26
Price to Earnings [P/E] P/E -5.60 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -5.07 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 47.81 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 10.76 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -571.20 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -89.57 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -259.49 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -429.86 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -850.00 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 22.76 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.66 95.08
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) 0.04 3.75
Current Ratio Curr Ratio (Qtr) 0.43 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.41 0.17
Interest Cover Ratio Int Coverage (Qtr) -5.07 -52.32
Times Interest Earned Times Interest Earned (Qtr) -5.07 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.10 -100.06
EBIT Margin % EBIT Margin % (Qtr) -9.84 -164.24
EBT Margin % EBT Margin % (Qtr) -11.79 -116.94
Gross Margin % Gross Margin % (Qtr) 84.60 58.20
Net Profit Margin % Net Margin % (Qtr) -10.20 -121.65