Why We Think Hudson Global, Inc. (NASDAQ:HSON) Could Be Worth Looking At
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Hudson Global, Inc. (NASDAQ:HSON) due to its excellent fundamentals in more than one area. HSON is a company with robust financial health as well as an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Hudson Global here.
Excellent balance sheet with high growth potential
Investors in search for stocks with room to flourish should look no further than HSON, with its earnings expected to more than double over the next year. The optimistic bottom-line growth is supported by an outstanding revenue growth of 67% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. HSON's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that HSON has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at HSON's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Hudson Global, there are three important factors you should further research:
Historical Performance: What has HSON's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is HSON worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HSON is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HSON? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
