Balancing Dividends and Fundamentals: The Case of NYSE:RHI.

Our stock screening tool has identified ROBERT HALF INC (NYSE:RHI) as a strong dividend contender with robust fundamentals. NYSE:RHI exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Dividend Analysis for NYSE:RHI

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:RHI earns a 7 out of 10:

• RHI's Dividend Yield is rather good when compared to the industry average which is at 2.18. RHI pays more dividend than 93.67% of the companies in the same industry.
• The dividend of RHI is nicely growing with an annual growth rate of 12.55%!
• RHI has paid a dividend for at least 10 years, which is a reliable track record.
• RHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 36.47% of the earnings are spent on dividend by RHI. This is a low number and sustainable payout ratio.

Looking at the Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:RHI has received a 9 out of 10:

• An Altman-Z score of 6.89 indicates that RHI is not in any danger for bankruptcy at the moment.
• RHI's Altman-Z score of 6.89 is amongst the best of the industry. RHI outperforms 89.87% of its industry peers.
• There is no outstanding debt for RHI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• RHI has a Current ratio of 1.86. This is in the better half of the industry: RHI outperforms 72.15% of its industry peers.
• With a decent Quick ratio value of 1.86, RHI is doing good in the industry, outperforming 73.42% of the companies in the same industry.

Profitability Assessment of NYSE:RHI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:RHI has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 17.67%, RHI belongs to the top of the industry, outperforming 98.73% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 33.36%, RHI belongs to the top of the industry, outperforming 89.87% of the companies in the same industry.
• The Return On Invested Capital of RHI (27.50%) is better than 94.94% of its industry peers.
• RHI had an Average Return On Invested Capital over the past 3 years of 30.85%. This is significantly above the industry average of 12.02%.
• Looking at the Profit Margin, with a value of 7.84%, RHI belongs to the top of the industry, outperforming 82.28% of the companies in the same industry.
• RHI's Profit Margin has improved in the last couple of years.
• RHI has a better Operating Margin (9.64%) than 72.15% of its industry peers.
• RHI's Operating Margin has improved in the last couple of years.

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Check the latest full fundamental report of RHI for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.