HHS  Harte-hanks Inc.

Exchange

NYSE

Sector

Technology

Industry

Advertising

Market Cap.

54.54M

Vuru Grade

55.48/100

Current Price

$0.88
-0.03 (-3.56%)

Growth Price

$1.64
Undervalued by 86.82%

Stability Price

$5.26
Undervalued by 497.45%

Company Metrics

  • P/E 16.22
  • P/S 0.14
  • P/B 20
  • EPS -2.15
  • Cash ROIC 8.76%
  • Cash Ratio 0.44
  • Dividend 0 / 0%
  • Avg. Vol. 88,614.00
  • Shares 61.98M
  • Market Cap. 54.54M

Company Description

Harte-Hanks, Inc. operates as a direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities to local, regional, national, and international customer and business-to-business marketers. The company operates through two segments, Direct Marketing and Shoppers. The Direct Marketing segment offers integrated, multichannel, and data-driven solutio... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Harte Hanks Schedules 2nd Quarter Financial Results Announcement and Investor ...
GlobeNewswire (press release) - Sep 25, 2017
25, 2017 (GLOBE NEWSWIRE) -- Harte Hanks (NYSE:HHS), a leader in customer relationships, experiences and interaction-led marketing, announced today that the company will release its second quarter 2017 financial results, for the quarter ending June 30 ...
Harte-Hanks, Inc. (HHS) to Release Quarterly Earnings on Thursday - Dispatch Tribunal
Harte Hanks Inc (HHS) Shares Move 5.31% - Financial Newsweek
New York hedge fund nominees win seats on Harte Hanks board
mySanAntonio.com - Jul 19, 2017
People walk past the New York Stock Exchange last month. San Antonio-based Harte Hanks Inc. previously has disclosed it could be subject to delisting from the NYSE because the company has been late in filing financial reports with the Securities and ...
Left For Dead At Under $1, Harte Hanks Still Doesn't Look Attractive
Seeking Alpha - Jun 3, 2016
Harte Hanks is still swooning, and it's not clear whether management has a) the competence or b) the sense of urgency to fix this organization.
Decision Time: Harte-Hanks Inc (NYSE:HHS) Stock Technicals Hit Inflection Point
CML News - 1 hour ago
Decision Time: Harte-Hanks Inc (NYSE:HHS) now sits in the perhaps the most difficult technical position -- the stock has no urgency in its direction and that has left it at an inflection point.
San Antonio's Harte Hanks' loss widens to $7.4M in first quarter
mySanAntonio.com - Aug 16, 2017
San Antonio-based Harte Hanks Inc.'s loss widened to $7.4 million in the first quarter as the direct mail marketing company's revenues continued to fall, the company announced in a much-delayed earnings report Wednesday.
Harte Hanks' (HHS) CEO Karen Puckett on Q1 2017 Results - Earnings Call Transcript - Seeking Alpha
Harte-Hanks, Inc. (NYSE:HHS) Sees Light Trading Volume with 53K Shares ... - Highlight Press
New York hedge fund pushes for board seats at financially troubled Harte Hanks
mySanAntonio.com - Jun 16, 2017
New York hedge fund manager Sidus Investment Partners plans to nominate two directors for San Antonio marketing company Harte Hanks Inc.'s board. In April, Harte Hanks disclosed it was not in compliance with the New York Stock Exchange's listing ...
Harte Hanks: Still Out Of Favor And Clearly Undervalued
Seeking Alpha - Nov 11, 2016
Harte Hanks, Inc. (NYSE:HHS) currently trades for ~$85m. In the next 6-12 months it will dispose of its crown jewel division for what I estimate to be very conservatively $100m (more than its current market cap) and use the cash from the sale to repay ...
Harte Hanks cutting costs, selling 3Q Digital
mySanAntonio.com - Apr 18, 2017
Harte Hanks is trimming $10 million in annual costs and selling its 3Q Digital subsidiary as part of a plan to enhance the San Antonio marketing company's “strategic position and financial flexibility,” the San Antonio company said in a statement ...
Harte Hanks Receives Notice of Non-Compliance from New York Stock Exchange
MarketWatch - Aug 14, 2017
During the cure period, Harte Hanks common stock will continue to be listed on the NYSE. The Company's common stock will continue to trade under the symbol "HHS," but will have an added symbol of ".
Harte-Hanks, Inc. (HHS) Sees 52-Week High - Highlight Press
Harte Hanks Completes Sale of Trillium Business
Yahoo Sports - Dec 23, 2016
SAN ANTONIO, TX--(Marketwired - Dec 23, 2016) - Harte Hanks ( NYSE : HHS ), a leader in customer relationships, experiences and interaction-led marketing, today announced the closing of the sale of Trillium Software to Syncsort for $112 million in cash ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for HHS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate HHS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$0.88 Current Price

$1.64 Growth Price (DCF)

Undervalued by 86.82%


Growth Rate Assumed by Market: -35.64%


Future Free Cash Flow Growth Rate: -15.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$5.26 Stability Price (EPV)

Undervalued by 497.45%


Discount Rate: 15.0%

$0.11 Book Price

Overvalued by 87.37%


Poor Cash Return on Invested Capital over the past 5 years

HHS has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

HHS has only created $8.76 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 62.47M 43.70M 14.30M 19.37M 7.90M
divided by
Invested Capital 516.37M 455.95M 466.18M 299.57M 62.77M
Cash ROIC 12.10% 9.58% 3.07% 6.47% 12.59%

Very Poor Return on Equity over the past 5 years

HHS has shown an inability to deliver results for shareholders. This could be due to poor management, HHS operating in a highly competitive industry, or having a weak business in general.

HHS has generated a $701.99 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -73.10M 24.44M 23.99M -170.93M -89.78M
divided by
Stockholders' Equity 328.16M 349.05M 326.68M 140.32M 2.66M
Return on Equity -22.28% 7.00% 7.34% -121.82% -3,380.20%

Excellent Business Performance over the past 10 years

HHS has been able to maintain profitability in good times and bad. This could mean HHS has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

HHS has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 115.00M 96.75M 105.01M 77.93M 39.63M 62.47M 43.70M 14.30M 19.37M 7.90M

Weak Balance Sheet

HHS's financial position is not ideal. The key is to check whether HHS is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 22.85M 30.16M 86.60M 86.00M 86.78M 49.65M 88.75M 56.75M 17.61M 46.01M
Current Assets 265.68M 241.20M 256.60M 268.46M 275.52M 225.50M 239.31M 206.49M 151.71M 149.43M
Total Assets 951.93M 913.57M 908.15M 926.88M 932.51M 706.21M 685.54M 647.20M 414.62M 213.44M
Current Liabilities 180.11M 187.74M 173.20M 280.96M 205.07M 140.20M 140.84M 124.27M 97.44M 104.67M
Total Liabilities 543.41M 557.19M 506.51M 489.06M 486.16M 378.05M 336.48M 320.52M 274.31M 210.78M
Stockholder' Equity 408.51M 356.37M 401.64M 437.82M 446.36M 328.16M 349.05M 326.68M 140.32M 2.66M
Current Ratio 1.48 1.28 1.48 0.96 1.34 1.61 1.70 1.66 1.56 1.43
TL-to-TA 0.57 0.61 0.56 0.53 0.52 0.54 0.49 0.50 0.66 0.99

Low or No Reinvestment of Profits over the past 10 years

HHS has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to HHS operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 1.15B 1.19B 1.22B 1.25B 1.28B 1.17B 1.16B 1.17B 973.54M 837.32M
Retained Earnings Growth - 3.81% 2.40% 2.83% 1.90% -8.64% -0.24% 0.22% -16.49% -13.99%

Loss Making Entity over the past 10 years

HHS has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$2.68 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 92.64M 62.74M 47.72M 53.60M 44.20M -73.10M 24.44M 23.99M -170.93M -89.78M
divided by
Revenue 1.16B 1.08B 860.14M 860.53M 850.77M 767.71M 559.61M 553.68M 495.30M 404.41M
Net Profit Margin 7.97% 5.79% 5.55% 6.23% 5.20% -9.52% 4.37% 4.33% -34.51% -22.20%

Strong Pricing Power over the past 10 years

HHS has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$62.23 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 291.42M 684.12M 547.91M 537.31M 524.41M 484.97M 398.01M 386.72M 351.98M 287.29M
divided by
Revenue 1.16B 1.08B 860.14M 860.53M 850.77M 767.71M 559.61M 553.68M 495.30M 404.41M
Gross Margin 25.06% 63.18% 63.70% 62.44% 61.64% 63.17% 71.12% 69.85% 71.06% 71.04%

Medium Capital Intensity over the past 10 years

HHS has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

39.03% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 28.22M 19.95M 9.01M 17.45M 21.03M 13.86M 15.87M 11.27M 11.57M 6.69M
divided by
Net Income 92.64M 62.74M 47.72M 53.60M 44.20M -73.10M 24.44M 23.99M -170.93M -89.78M
Capital Expenditure Ratio 30.46% 31.79% 18.89% 32.55% 47.59% -18.95% 64.94% 46.96% -6.77% -7.45%

Very Strong Dividend History over the past 10 years

HHS has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests HHS is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 20.30M 19.10M 19.12M 19.14M 20.37M 26.96M 16.12M 21.49M 21.24M 5.29M
divided by
Shares Outstanding 73.70M 64.10M 63.89M 64.14M 63.55M 62.89M 62.81M 62.66M 61.64M 61.49M
Dividend Paid Per Share 0.28 0.30 0.30 0.30 0.32 0.43 0.26 0.34 0.34 0.09
Price at Year End 15.02 5.30 10.27 12.27 9.09 5.80 7.77 7.71 3.33 1.51
Dividend Yield 1.83% 5.62% 2.91% 2.43% 3.53% 7.39% 3.30% 4.45% 10.35% 5.69%

Strong History of Stock Buybacks over the past 10 years

HHS has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 73.70M 64.10M 63.89M 64.14M 63.55M 62.89M 62.81M 62.66M 61.64M 61.49M
Stock Bought Back - 14.97% 0.34% -0.40% 0.92% 1.06% 0.12% 0.25% 1.65% 0.25%
Share your thoughts about HHS

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!