This post began by searching for stocks hitting their 52 week low. The DHI Group (DHX) reached its 52 low on Monday 04/03/17. At $3.90 it offered investors value. Then, the stock moved up over the next few days as I prepared this post. DHX closed Friday (04/07/17) at $4.50.

The DHI Group is a micro-cap with historical and impressive, consistent high FCF margins that the market forgot. Revenue growth challenges from a difficult specialized job market and increased competition (mostly perceived) chased away the original shareholder base of magic formula growth investors. This overlooked investment has an asset light business model that consistently generates the staffing industry’s highest FCF yields. Also,coupled with its aggressive, opportunistic share buybacks, debt reduction and activist interest the stock offers longer term value investors a tempting opportunity.

Profile:

DHI Group offers employment related professional connections through several specialized job recruitment websites. Additionally, their software services access, search and analyze their proprietary resume databases. These targeted professionals work within technology, financial services, energy, healthcare and the hospitality industries. Above all, the goal is to allow professionals and organizations to access proprietary data to compete for employment connections. Employers and recruiters use their websites and services to find the most qualified professionals within their skilled occupations. Individual professionals use their websites and services to find the best jobs, industry news, detailed salary information, and expand networking opportunities.

Their online recruitment packages target the difficult to fill employment categories experiencing a scarcity of skilled professionals relative to market demand. These online marketplaces are where employers and recruiters find employees. Professionals use the services to find job postings, news, career development and recruiting services. It’s DHI Group of recognized web sites, quality and size of its database of industry candidates that creates a competitive advantage. Last, DHI has been in the recruiting and career development business for over 26 years.