HMH Holding Inc. Class A Common Stock (HMH)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

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

Looking at HMH Holding, I see a cyclical oil-and-gas equipment supplier with a thin margin and a demanding price. In the latest filed quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $170.8 million and net income $5.0 million, a slim 2.91% margin. A year earlier, fiscal Q2 2025, revenue was $203.5 million and net income $8.9 million, so sales and profits shrank. Those are not the marks of a thriving enterprise. The aftermarket side, which includes replacement parts and service on installed equipment, could be steadier than new equipment sales, but these figures do not prove a durable competitive moat. Financial health is mixed. Debt-to-equity is a modest 0.29, and trailing free cash flow of $102.0 million gives an 11.6% FCF yield, which is attractive. A Piotroski F-Score of 8/9 also suggests recent accounting improvement. But ROE is only 3.87% and ROCE 4.11%, while the Altman Z-Score of 1.56 is a caution flag. The FairStock Score is 28/100. Valuation is the rub. At $18.98 on 2026-10-13, FairStock calculates a P/E of 126.53. Its Graham Number is $7.68, implying a -147.14% margin of safety, meaning the price is far above that conservative value. EV/EBITDA of 9.11 is less alarming if cash flow holds, but earnings are weak and the latest quarter was down sharply year over year. I would need evidence that revenue and margins are stabilizing before treating this as a bargain. A high cash flow yield can be attractive, but not if it reflects a cyclical peak or working capital swings.

In plain English: HMH makes and services drilling equipment for oil and gas companies, mostly offshore and onshore. Its latest reported quarter, fiscal Q2 2026 ended 2026-06-30, showed sales of $170.8 million and net income of $5.0 million, down from $203.5 million and $8.9 million in fiscal Q2 2025. At $18.98 on 2026-10-13, the shares look expensive against its weak reported profits, though the company does generate meaningful cash.

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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 Q2 2025 10-Q (period ended 2025-06-30)

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