About HUDSON TECHNOLOGIES INC
Hudson Technologies, Inc. a refrigerant services company, provides solutions to recurring problems within the refrigeration industry primarily in the United States. The company's products and services include refrigerant and industrial gas sales; refrigerant management services consisting primarily of reclamation of refrigerants, re-usable cylinder refurbishment, and hydrostatic testing services; and RefrigerantSide services comprising system decontamination to remove moisture, oils, and other contaminants. It also offers SmartEnergy OPS service, a web-based real time continuous monitoring service for facility's refrigeration systems and other energy systems applications; and Chiller Chemistry and Chill Smart services.
In addition, the company participates in the generation of carbon offset projects. It serves commercial, industrial, and governmental customers, as well as refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. Hudson Technologies, Inc. was incorporated in 1991 and is headquartered in Woodcliff Lake, New Jersey.
HDSN operates in the Wholesale Trade | Wholesale | headquartered in PEARL RIVER, New York | approximately 220 employees | led by CEO Brian F. Coleman.
The $433.6M question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. HUDSON TECHNOLOGIES INC /NY is one such company.
At $433.6M in market capitalization, HUDSON TECHNOLOGIES INC /NY (HDSN) currently ranks #115 in our quantitative model, with a composite score of 78.0/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives HDSN the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 79/100 | 30% | Strong |
| Value | 91/100 | 15% | Attractive |
| Momentum | 72/100 | 25% | Accelerating |
| Investment | 99/100 | 10% | Growing |
| Stability | 1/100 | 10% | Volatile |
| Short Interest | 98/100 | 10% | Low shorts |
The quality score of 79/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 13.7%
- Net Margin: 16.7%
- Gross Margin: 32.0%
These aren't just good numbers. They're the kind of numbers that make HDSN a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like HDSN."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. HDSN is quality defined.
- Momentum is real. With a momentum score of 72/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 19.1x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
HUDSON TECHNOLOGIES INC /NY is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, HDSN is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 78.0/100 | Rank: #115 of 3,571 stocks
Sector: Consumer Staples
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.