Harte Hanks, Inc. (HHS) | Investment Case

1. Company Snapshot

1.a. Company Description

Harte Hanks, Inc.operates as a customer experience company in the United States and internationally.It operates through three segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services.

The company provides strategic guidance to help clients to plan and execute omni-channel marketing programs; audience identification, profiling, segmentation and prioritization, predictive modeling, and data strategy services; data hygiene and cleansing services; print, broadcast, direct mail, website, app, display, social, mobile, search engine marketing, and voice services; Website and app development, e-commerce enablement, database building and management, platform architecture creation, and marketing automation services; and outsourcing marketing operations solutions.It also offers customer experience management services comprising interact and resolve consumer concerns across hardware and software platforms, healthcare benefit plans, and recalls or a myriad of other customer service issues; CRM and digital transformation solutions to create meaningful customer interactions by connecting content between agent or AI-driven interfaces and web-based self-help tools and community forums; and intelligence-based B2B solutions that understand audiences and their behaviors, and then inspire and drive action to deliver results.In addition, the company provides product, print-on-demand, and mail fulfillment solutions, such as printing on demand, managing product recalls, and distributing literature and promotional products; custom solutions to engage audiences, target customers, support conferences, and appreciate employees; and third-party logistics and freight optimization services.

It primarily serves B2B, consumer brand, financial services, retail, and healthcare vertical markets.Harte Hanks, Inc.was founded in 1923 and is headquartered in Chelmsford, Massachusetts.

Show Full description

1.b. Last Insights on HHS

Harte Hanks' recent struggles can be attributed to leadership uncertainty following the sudden departure of CEO Kirk Davis, which may disrupt the company's transformation efforts. The company's reliance on partnerships, such as the recent collaboration with Reddy to implement AI-driven customer care solutions, may not be enough to drive growth. The lack of a clear succession plan and potential disruption to the company's strategy may weigh on investor sentiment.

1.c. Company Highlights

Last Price	3.21
Change Percentage	-1.36%
Open	3.22
Previous Close	3.25
Market Cap ( Millions)	24
Volume	1783
Year High	6
Year Low	2.33
M A 50	3.32
M A 200	3.98

FCF Yield	-37.56%
Dividend Yield	0.00%
ROE	-25.56%
Debt / Equity	109.46%
Net Debt / EBIDTA	253.24%
Price To Book	1.19
Price Earnings Ratio	-4.35
Price To FCF	-2.66
Price To sales	0.14
EV / EBITDA	6.48

2. Transcript Summary

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3. NewsRoom

Harte Hanks Reports Third Quarter 2025 Results

Nov -10

Source: accessnewswire.com

Harte Hanks Partners with Samsung to Open Dedicated Customer Care Center in Greenville, SC; Supporting 150+ Jobs

Oct -21

Source: accessnewswire.com

Harte Hanks (HHS) Q2 Revenue Falls 14%

Aug -08

Source: fool.com

Harte Hanks Reports Second Quarter 2025 Results

Aug -07

Source: accessnewswire.com

Harte Hanks, Inc. Appoints David Fisher as President to Lead Next Phase of Client Innovation and Growth

Jun -30

Source: accessnewswire.com

Harte Hanks Extends Line of Credit with Texas Capital Bank

Jun -30

Source: accessnewswire.com

Harte Hanks Honored with DigiKey Partnership Excellence Award

Jun -03

Source: accessnewswire.com

Harte Hanks Acquires Exclusive Rights to License ADS Data Direct's Premier Medical Ailment Database

Jun -02

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.65%)

6. Segments

Fulfillment & Logistics Services

Expected Growth: 8.5%

Growing e-commerce demand, increasing need for efficient supply chain management, and rising importance of timely order fulfillment drive the growth of Harte Hanks' Fulfillment & Logistics Services.

Customer Care

Expected Growth: 7.8%

Growing demand for outsourced customer service, increasing adoption of multichannel support, and rising need for technical assistance and customer engagement services drive growth in the customer care market.

Marketing Services

Expected Growth: 10.2%

Growing demand for data-driven marketing solutions, increasing adoption of digital channels, and rising need for customer-centric experiences drive growth in Harte Hanks' marketing services segment.

7. Detailed Products

Customer Analytics

Harte Hanks' customer analytics solutions help businesses gain insights into customer behavior, preferences, and needs.

Digital Marketing

Harte Hanks' digital marketing services include email, mobile, and social media marketing to help businesses reach and engage with their target audience.

Data Management

Harte Hanks' data management solutions help businesses manage, integrate, and analyze large datasets to inform business decisions.

Customer Experience

Harte Hanks' customer experience solutions help businesses design and deliver personalized, omnichannel experiences that drive loyalty and revenue.

Marketing Operations

Harte Hanks' marketing operations solutions help businesses optimize marketing processes, improve efficiency, and reduce costs.

Trilliant

Harte Hanks' Trilliant is a customer analytics and marketing automation platform that helps businesses drive revenue and loyalty.

8. Harte Hanks, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Harte Hanks, Inc. operates in a niche market, providing customer relationship management and operating in a specific industry. The threat of substitutes is medium, as there are limited alternatives available to customers.

Bargaining Power Of Customers

Harte Hanks, Inc. has a diverse customer base, and no single customer accounts for a significant portion of its revenue. This reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Harte Hanks, Inc. relies on a few key suppliers for its operations. While there are alternative suppliers available, the company's reliance on these suppliers gives them some bargaining power.

Threat Of New Entrants

The market in which Harte Hanks, Inc. operates has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to enter the market.

Intensity Of Rivalry

The market in which Harte Hanks, Inc. operates is highly competitive, with several established players competing for market share. This intense rivalry puts pressure on the company to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	58.94%
Debt Cost	3.95%
Equity Weight	41.06%
Equity Cost	6.58%
WACC	5.03%
Leverage	143.56%

11. Quality Control: Harte Hanks, Inc. passed 0 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Steel Connect

A-Score: 5.6/10

Value: 9.3

Growth: 4.7

Quality: 6.6

Yield: 0.0

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

Emerald Holding

A-Score: 4.4/10

Value: 4.2

Growth: 2.9

Quality: 6.5

Yield: 1.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

Inuvo

A-Score: 4.1/10

Value: 6.2

Growth: 3.9

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

QuinStreet

A-Score: 3.8/10

Value: 3.9

Growth: 7.6

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

Harte Hanks

A-Score: 3.8/10

Value: 9.2

Growth: 1.1

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

National CineMedia

A-Score: 3.6/10

Value: 6.0

Growth: 2.4

Quality: 4.2

Yield: 5.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

15.79%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.03%

Harte Hanks, Inc. - US4161962026

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on HHS

1.c. Company Highlights

Stable Momentum

Medium Volatility

Average Yield

Earnings Beats

Average Growth

Strong Momentum

Revenues Miss

Fairly Valued

Lower Quality

Cheaper

Weak Momentum

Earnings Miss

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.65%)

6. Segments

Fulfillment & Logistics Services

Expected Growth: 8.5%

Customer Care

Expected Growth: 7.8%

Marketing Services

Expected Growth: 10.2%

7. Detailed Products

Customer Analytics

Digital Marketing

Data Management

Customer Experience

Marketing Operations

Trilliant

8. Harte Hanks, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Harte Hanks, Inc. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.21$

Current Price

3.21$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA