📊 HGBL Key Takeaways
Is Heritage Global Inc. (HGBL) a Good Investment?
Heritage Global exhibits revenue growth of 12.4% YoY but faces critical operational challenges with negative operating cash flow (-$2.7M) and declining profitability metrics (flat net income, -28.6% EPS), indicating the company cannot convert revenue into sustainable cash generation. While the balance sheet is conservatively structured with minimal debt (0.06x D/E), returns on equity (1.1%) and assets (0.8%) are severely depressed, signaling fundamental business model inefficiency.
Solid revenue growth and healthy operating margins are supported by a strong, underlevered balance sheet with ample liquidity. However, flat net income, negative free cash flow due to elevated capex, and a sharp decline in diluted EPS suggest weak operating leverage and potential dilution. Maintain neutral until cash conversion and earnings growth re-accelerate.
Why Buy Heritage Global Inc. Stock? HGBL Key Strengths
- Conservative balance sheet with minimal leverage (0.06x debt/equity ratio)
- Strong liquidity position (1.95x current ratio, 1.51x quick ratio) with $11.6M cash reserves
- Double-digit revenue growth (12.4% YoY) demonstrates market demand
- Low leverage and high interest coverage
- Double-digit revenue growth
- Healthy operating and net margins
HGBL Stock Risks: Heritage Global Inc. Investment Risks
- Negative operating cash flow (-$2.7M) and free cash flow (-$3.2M) despite revenue growth indicate severe operational efficiency and working capital management issues
- Profitability deterioration: flat net income growth (0.0% YoY) with declining EPS (-28.6%) suggests margin compression and equity dilution
- Extremely weak capital returns (ROE 1.1%, ROA 0.8%) indicate poor asset deployment and value destruction
- Negative free cash flow from high capex
- Earnings stagnation despite revenue growth
- EPS dilution indicating share count or margin pressure
Key Metrics to Watch
- Operating cash flow trend - critical turnaround indicator
- Net profit margin evolution - understand disconnect between revenue growth and profit stagnation
- Return on equity sustainability - assess whether returns improve or deteriorate further
- Free cash flow margin
- Operating margin
Heritage Global Inc. (HGBL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Heritage Global Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HGBL Profit Margin, ROE & Profitability Analysis
HGBL vs Services Sector: How Heritage Global Inc. Compares
How Heritage Global Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Heritage Global Inc. Stock Overvalued? HGBL Valuation Analysis 2026
Based on fundamental analysis, Heritage Global Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Heritage Global Inc. Balance Sheet: HGBL Debt, Cash & Liquidity
HGBL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Heritage Global Inc.'s revenue has grown significantly by 95% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.14 reflects profitable operations.
HGBL Revenue Growth, EPS Growth & YoY Performance
HGBL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $12.7M | $717.0K | $0.02 |
| Q3 2025 | $10.4M | $585.0K | $0.02 |
| Q2 2025 | $12.0M | $1.1M | $0.05 |
| Q1 2025 | $12.2M | $1.1M | $0.03 |
| Q3 2024 | $10.4M | $1.1M | $0.03 |
| Q2 2024 | $12.0M | $1.8M | $0.07 |
| Q1 2024 | $12.2M | $1.8M | $0.05 |
| Q3 2023 | $12.7M | $645.0K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Heritage Global Inc. Dividends, Buybacks & Capital Allocation
HGBL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Heritage Global Inc. (CIK: 0000849145)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HGBL
What is the AI rating for HGBL?
Heritage Global Inc. (HGBL) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HGBL's key strengths?
Claude: Conservative balance sheet with minimal leverage (0.06x debt/equity ratio). Strong liquidity position (1.95x current ratio, 1.51x quick ratio) with $11.6M cash reserves. ChatGPT: Low leverage and high interest coverage. Double-digit revenue growth.
What are the risks of investing in HGBL?
Claude: Negative operating cash flow (-$2.7M) and free cash flow (-$3.2M) despite revenue growth indicate severe operational efficiency and working capital management issues. Profitability deterioration: flat net income growth (0.0% YoY) with declining EPS (-28.6%) suggests margin compression and equity dilution. ChatGPT: Negative free cash flow from high capex. Earnings stagnation despite revenue growth.
What is HGBL's revenue and growth?
Heritage Global Inc. reported revenue of $12.7M.
Does HGBL pay dividends?
Heritage Global Inc. does not currently pay dividends.
Where can I find HGBL SEC filings?
Official SEC filings for Heritage Global Inc. (CIK: 0000849145) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HGBL's EPS?
Heritage Global Inc. has a diluted EPS of $0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HGBL a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Heritage Global Inc. has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HGBL stock overvalued or undervalued?
Valuation metrics for HGBL: ROE of 1.1% (sector avg: 16%), net margin of 5.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy HGBL stock in 2026?
Our dual AI analysis gives Heritage Global Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HGBL's free cash flow?
Heritage Global Inc.'s operating cash flow is $-2.7M, with capital expenditures of $562.0K. FCF margin is -25.5%.
How does HGBL compare to other Services stocks?
Vs Services sector averages: Net margin 5.6% (avg: 10%), ROE 1.1% (avg: 16%), current ratio 1.95 (avg: 1.5).