Best Dividend Stocks. Analyze the stocks with the best dividend, while also showing decent profitability and health.


ROBERT HALF INC

New York Stock Exchange, Inc. / Industrials / Professional Services

Fundamental Rating

6

Overall RHI gets a fundamental rating of 6 out of 10. We evaluated RHI against 82 industry peers in the Professional Services industry. RHI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RHI has a decent growth rate and is not valued too expensively. Finally RHI also has an excellent dividend rating. With these ratings, RHI could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year RHI was profitable.
In the past year RHI had a positive cash flow from operations.
RHI had positive earnings in each of the past 5 years.
RHI had a positive operating cash flow in each of the past 5 years.
RHI Yearly Net Income VS EBIT VS OCF VS FCFRHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

1.2 Ratios

With a decent Return On Assets value of 8.81%, RHI is doing good in the industry, outperforming 78.05% of the companies in the same industry.
RHI's Return On Equity of 18.26% is fine compared to the rest of the industry. RHI outperforms 67.07% of its industry peers.
The Return On Invested Capital of RHI (10.90%) is better than 68.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RHI is significantly above the industry average of 12.96%.
The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(10.90%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 8.81%
ROE 18.26%
ROIC 10.9%
ROA(3y)14.89%
ROA(5y)15.38%
ROE(3y)28.7%
ROE(5y)30.97%
ROIC(3y)22.98%
ROIC(5y)23.62%
RHI Yearly ROA, ROE, ROICRHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

RHI has a Profit Margin (4.34%) which is in line with its industry peers.
RHI's Profit Margin has declined in the last couple of years.
RHI's Operating Margin of 4.17% is in line compared to the rest of the industry. RHI outperforms 45.12% of its industry peers.
RHI's Operating Margin has declined in the last couple of years.
RHI has a Gross Margin of 38.77%. This is comparable to the rest of the industry: RHI outperforms 53.66% of its industry peers.
In the last couple of years the Gross Margin of RHI has remained more or less at the same level.
Industry RankSector Rank
OM 4.17%
PM (TTM) 4.34%
GM 38.77%
OM growth 3Y-28.69%
OM growth 5Y-14.85%
PM growth 3Y-22.33%
PM growth 5Y-10.31%
GM growth 3Y-2.42%
GM growth 5Y-1.38%
RHI Yearly Profit, Operating, Gross MarginsRHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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8

2. Health

2.1 Basic Checks

RHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for RHI has been reduced compared to 1 year ago.
RHI has less shares outstanding than it did 5 years ago.
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 Yearly Shares OutstandingRHI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
RHI Yearly Total Debt VS Total AssetsRHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 4.56 indicates that RHI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.56, RHI is doing good in the industry, outperforming 79.27% of the companies in the same industry.
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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.56
ROIC/WACC1.19
WACC9.15%
RHI Yearly LT Debt VS Equity VS FCFRHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.3 Liquidity

RHI has a Current Ratio of 1.66. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
RHI has a Current ratio of 1.66. This is in the better half of the industry: RHI outperforms 67.07% of its industry peers.
RHI has a Quick Ratio of 1.66. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.66, RHI is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.66
Quick Ratio 1.66
RHI Yearly Current Assets VS Current LiabilitesRHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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4

3. Growth

3.1 Past

The earnings per share for RHI have decreased strongly by -40.12% in the last year.
The Earnings Per Share has been decreasing by -8.95% on average over the past years.
RHI shows a decrease in Revenue. In the last year, the revenue decreased by -7.81%.
Measured over the past years, RHI shows a decrease in Revenue. The Revenue has been decreasing by -0.93% on average per year.
EPS 1Y (TTM)-40.12%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-72.13%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-8.4%

3.2 Future

RHI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.18% yearly.
The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y-28.76%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
EPS Next 5Y28.18%
Revenue Next Year-6.3%
Revenue Next 2Y-0.63%
Revenue Next 3Y2.52%
Revenue Next 5Y8.52%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
RHI Yearly Revenue VS EstimatesRHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
RHI Yearly EPS VS EstimatesRHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

RHI is valuated rather expensively with a Price/Earnings ratio of 22.66.
RHI's Price/Earnings ratio is in line with the industry average.
RHI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
RHI is valuated correctly with a Price/Forward Earnings ratio of 16.75.
RHI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. RHI is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.66
Fwd PE 16.75
RHI Price Earnings VS Forward Price EarningsRHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI is on the same level as its industry peers.
76.83% of the companies in the same industry are more expensive than RHI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.07
EV/EBITDA 13.88
RHI Per share dataRHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

RHI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RHI's earnings are expected to grow with 18.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.3%
EPS Next 3Y18.48%

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8

5. Dividend

5.1 Amount

RHI has a Yearly Dividend Yield of 5.18%, which is a nice return.
In the last 3 months the price of RHI has falen by -24.48%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RHI's Dividend Yield is rather good when compared to the industry average which is at 2.02. RHI pays more dividend than 97.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, RHI pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.18%

5.2 History

The dividend of RHI is nicely growing with an annual growth rate of 11.32%!
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.
Dividend Growth(5Y)11.32%
Div Incr Years20
Div Non Decr Years20
RHI Yearly Dividends per shareRHI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

RHI pays out 87.60% of its income as dividend. This is not a sustainable payout ratio.
RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP87.6%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
RHI Yearly Income VS Free CF VS DividendRHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
RHI Dividend Payout.RHI Dividend Payout, showing the Payout Ratio.RHI Dividend Payout.PayoutRetained Earnings

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