Latest news with #HDSN
Yahoo
03-06-2025
- Business
- Yahoo
1 Unpopular Stock that Should Get More Attention and 2 to Approach with Caution
Wall Street's bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. That said, here is one stock where Wall Street's pessimism is creating a buying opportunity and two where the skepticism is well-placed. Consensus Price Target: $51.50 (4.3% implied return) Founded in 1976, Red Rock Resorts (NASDAQ:RRR) operates a range of casino resorts and entertainment properties, primarily in the Las Vegas metropolitan area. Why Should You Dump RRR? 1.7% annual revenue growth over the last five years was slower than its consumer discretionary peers Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Diminishing returns on capital suggest its earlier profit pools are drying up Red Rock Resorts is trading at $49.37 per share, or 30x forward P/E. To fully understand why you should be careful with RRR, check out our full research report (it's free). Consensus Price Target: $7.31 (1.7% implied return) Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling. Why Does HDSN Fall Short? Customers postponed purchases of its products and services this cycle as its revenue declined by 15.5% annually over the last two years Earnings per share have dipped by 51.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term Waning returns on capital imply its previous profit engines are losing steam At $7.19 per share, Hudson Technologies trades at 9.2x forward EV-to-EBITDA. If you're considering HDSN for your portfolio, see our FREE research report to learn more. Consensus Price Target: $382.61 (0% implied return) With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE:HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England. Why Are We Positive On HCA? Massive revenue base of $71.59 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power Share buybacks catapulted its annual earnings per share growth to 20.7%, which outperformed its revenue gains over the last five years Stellar returns on capital showcase management's ability to surface highly profitable business ventures HCA Healthcare's stock price of $382.49 implies a valuation ratio of 14.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
1 Cash-Producing Stock with Competitive Advantages and 2 to Steer Clear Of
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here is one cash-producing company that reinvests wisely to drive long-term success and two that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 6.3% Specializing in digital casino gaming, Inspired (NASDAQ:INSE) is a provider of gaming hardware, virtual sports platforms, and server-based gaming systems. Why Does INSE Give Us Pause? Annual revenue growth of 1.9% over the last two years was below our standards for the consumer discretionary sector Estimated sales growth of 2.3% for the next 12 months is soft and implies weaker demand Low free cash flow margin of 3.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders At $8.28 per share, Inspired trades at 2.2x forward EV-to-EBITDA. To fully understand why you should be careful with INSE, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: 44.5% Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling. Why Are We Wary of HDSN? Customers postponed purchases of its products and services this cycle as its revenue declined by 15.5% annually over the last two years Earnings per share have dipped by 51.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Hudson Technologies is trading at $7.75 per share, or 10.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than HDSN. Trailing 12-Month Free Cash Flow Margin: 2.5% With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ:OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications. Why Are We Positive On OSIS? Market share has increased this cycle as its 18.5% annual revenue growth over the last two years was exceptional Earnings per share grew by 27.4% annually over the last two years, massively outpacing its peers Rising returns on capital show the company is starting to reap the benefits of its past investments OSI Systems's stock price of $229.78 implies a valuation ratio of 23.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Calculating The Fair Value Of Hudson Technologies, Inc. (NASDAQ:HDSN)
The projected fair value for Hudson Technologies is US$5.78 based on 2 Stage Free Cash Flow to Equity Current share price of US$6.23 suggests Hudson Technologies is potentially trading close to its fair value Analyst price target for HDSN is US$6.56, which is 14% above our fair value estimate Today we will run through one way of estimating the intrinsic value of Hudson Technologies, Inc. (NASDAQ:HDSN) by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$14.3m US$13.5m US$13.1m US$12.9m US$12.9m US$13.0m US$13.2m US$13.4m US$13.7m US$14.0m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ -2.98% Est @ -1.26% Est @ -0.06% Est @ 0.78% Est @ 1.37% Est @ 1.79% Est @ 2.08% Est @ 2.28% Present Value ($, Millions) Discounted @ 7.2% US$13.3 US$11.7 US$10.6 US$9.8 US$9.1 US$8.6 US$8.1 US$7.7 US$7.3 US$7.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$93m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.8%. We discount the terminal cash flows to today's value at a cost of equity of 7.2%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$14m× (1 + 2.8%) ÷ (7.2%– 2.8%) = US$323m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$323m÷ ( 1 + 7.2%)10= US$161m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$254m. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of US$6.2, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Hudson Technologies as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.2%, which is based on a levered beta of 1.027. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Hudson Technologies Strength Currently debt free. Weakness Earnings declined over the past year. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow for the next 2 years. Threat Annual earnings are forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Hudson Technologies, we've put together three essential elements you should further research: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Hudson Technologies , and understanding this should be part of your investment process. Future Earnings: How does HDSN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQCM every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
24-04-2025
- Business
- Yahoo
1 Cash-Heavy Stock Worth Your Attention and 2 to Approach with Caution
Companies with more cash than debt can be financially resilient, but that doesn't mean they're all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers. Just because a business has cash doesn't mean it's a good investment. Luckily, StockStory is here to help you separate the winners from the losers. That said, here is one company with a net cash position that can leverage its balance sheet to grow and two that may struggle. Net Cash Position: $4.36 billion (36% of Market Cap) Drawing gaming fans with demo units set up with the latest releases, GameStop (NYSE:GME) sells new and used video games, consoles, and accessories, as well as pop culture merchandise. Why Is GME Risky? Products have few die-hard fans as sales have declined by 10% annually over the last five years Operating margin of -0.6% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments Negative returns on capital show management lost money while trying to expand the business At $27.07 per share, GameStop trades at 3.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than GME. Net Cash Position: $65.22 million (27.9% of Market Cap) Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling. Why Is HDSN Not Exciting? Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.6% annually over the last two years Projected sales decline of 4.1% over the next 12 months indicates demand will continue deteriorating Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Hudson Technologies's stock price of $5.12 implies a valuation ratio of 13.6x forward price-to-earnings. To fully understand why you should be careful with HDSN, check out our full research report (it's free). Net Cash Position: $294.9 million (6.9% of Market Cap) Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction. Why Are We Bullish on STRL? Annual revenue growth of 13.4% over the past five years was outstanding, reflecting market share gains this cycle Free cash flow margin grew by 13.5 percentage points over the last five years, giving the company more chips to play with Returns on capital are growing as management capitalizes on its market opportunities Sterling is trading at $139.66 per share, or 21.6x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
Yahoo
15-04-2025
- Automotive
- Yahoo
1 Industrials Stock on Our Buy List and 2 to Approach with Caution
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 15.4% over the past six months. This performance was worse than the S&P 500's 7.1% fall. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one resilient industrials stock at the top of our wish list and two that may face trouble. Market Cap: $254 million Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling. Why Does HDSN Worry Us? Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.6% annually over the last two years Forecasted revenue decline of 4.1% for the upcoming 12 months implies demand will fall even further Earnings per share have contracted by 48.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance Hudson Technologies is trading at $5.80 per share, or 14.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why HDSN doesn't pass our bar. Market Cap: $76.77 million One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services. Why Are We Cautious About BLNK? Issuance of new shares over the last five years caused its earnings per share to fall by 10.2% annually while its revenue grew Cash-burning history makes us doubt the long-term viability of its business model Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders Blink Charging's stock price of $0.78 implies a valuation ratio of 0.6x forward price-to-sales. Read our free research report to see why you should think twice about including BLNK in your portfolio, it's free. Market Cap: $6.84 billion Backed by two million square feet of lab testing space, AAON (NASDAQ:AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings. Why Should You Buy AAON? Impressive 16.2% annual revenue growth over the last two years indicates it's winning market share this cycle Earnings per share have massively outperformed its peers over the last two years, increasing by 27.7% annually Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures At $85.80 per share, AAON trades at 28.7x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
