Hudson Global Trades At Value Prices And Offers Quality

Feb. 13, 2023 6:01 AM ETHudson Global, Inc. (HSON) StockHSON5 Comments
Quipus Capital
1.56K Followers

Summary

  • HSON offers RPO services to multinationals. It offers to outsource most of the recruitment function, partnering with the company.
  • Its revenues have shown resilience during the pandemic, are globally diversified and the company has $22 million in cash reserves. It has implemented good cost control policies.
  • HSON's management has made small and conservative acquisitions that seem accretive a priori. Coming from investment management, HSON's management understands capital allocation.
  • If current headwinds remain, the company trades at P/E ratio of 14x, under a more positive scenario, the ratio could compress to 7.5x on earnings growth.
  • Overall, I believe HSON commands such a premium on its negative scenario earnings because of its quality characteristics.
Group of business persons talking in the office.

VioletaStoimenova

Hudson Global (NASDAQ:HSON) is an RPO or recruitment process outsourcing company.

The company was previously more diversified in the HR services industry but after an activist campaign it concentrated on RPO alone. Since then, HSON has been growing revenues and profits, and improving

This article was written by

Quipus Capital
1.56K Followers
Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very small fraction of companies should be a buy at any point in time. However, hold articles provide important information for future investors and a healthy dose of skepticism to a relatively bullish-biased market.Disclaimer: All of the author's articles are written on an "as is" basis and without warranty. They represent the author's opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in any articles published.

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