Heritage Global Inc. Common Stock (HGBL)

FairStock Score: 77/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $1.26 on 2026-10-13, Heritage Global is a small asset-services firm with a market value of $43.6M and a price-to-book of 0.84, a FairStock calculation. That discount invites a Graham-style look, but the business must earn its keep. In fiscal Q2 2026, the quarter ended 2026-06-30, filed revenue was $12.3M and net income was -$15.9M, or -$0.46 per diluted share. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $14.3M and net income was $1.6M. That is a severe swing and not the consistency I want. Full-year figures show the same direction: FY2023 revenue was $60.5M and net income was $12.5M; FY2024 revenue was $45.4M and net income was $5.2M; FY2025 revenue was $51.0M and net income was $3.6M. Profits have shrunk even when revenue stabilized. The Lynch category given is SLOW GROWER — Shrinking, citing profit down 18.0% a year over five years and revenue 14.3%, and that fits. The balance sheet looks modestly levered with D/E 0.10, and Piotroski 5/9 is neutral, but ROE is -24.29% (FairStock calculation) and the latest quarter's margin was deeply negative. As a financial company, I would want CET1, net interest margin, or combined ratio, but none are in the data; instead I see specialty lending and asset risk. A sub-book price can be a margin of safety, but only if assets are sound and earnings normalize. Here the moat is thin, results are lumpy, and the recent loss is too large to ignore. Cheap-looking, but not clearly safe.

In plain English: Heritage Global helps companies buy, sell, value, fix up and lend against used industrial and financial assets. The business looks weak right now: it lost a lot of money in the latest quarter and profits have fallen over the past few years. The stock price looks low compared with the company's accounting value, but a low price is not enough if the company is not earning money.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer