HACKETT GROUP INC/THE (HCKT) Stock Fundamental Analysis
USA - NASDAQ:HCKT - US4046091090 - Common Stock
18.94 USD
+1.28 (+7.25%)
18.94 USD
0 (0%)
HCKT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 industry peers in the IT Services industry. HCKT gets an excellent profitability rating and is at the same time showing great financial health properties. HCKT may be a bit undervalued, certainly considering the very reasonable score on growth This makes HCKT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year HCKT was profitable.
HCKT had a positive operating cash flow in the past year.
Each year in the past 5 years HCKT has been profitable.
Each year in the past 5 years HCKT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.46%, HCKT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
HCKT's Return On Equity of 14.15% is fine compared to the rest of the industry. HCKT outperforms 75.29% of its industry peers.
HCKT has a Return On Invested Capital of 13.77%. This is amongst the best in the industry. HCKT outperforms 83.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HCKT is in line with the industry average of 27.96%.
The 3 year average ROIC (27.20%) for HCKT is well above the current ROIC(13.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.46% | ||
| ROE | 14.15% | ||
| ROIC | 13.77% |
ROA(3y)18.77%
ROA(5y)15.84%
ROE(3y)44.51%
ROE(5y)33.26%
ROIC(3y)27.2%
ROIC(5y)22.5%
1.3 Margins
HCKT has a Profit Margin of 5.37%. This is in the better half of the industry: HCKT outperforms 63.53% of its industry peers.
In the last couple of years the Profit Margin of HCKT has grown nicely.
HCKT has a Operating Margin of 9.36%. This is in the better half of the industry: HCKT outperforms 65.88% of its industry peers.
In the last couple of years the Operating Margin of HCKT has grown nicely.
HCKT's Gross Margin of 37.55% is in line compared to the rest of the industry. HCKT outperforms 54.12% of its industry peers.
HCKT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.36% | ||
| PM (TTM) | 5.37% | ||
| GM | 37.55% |
OM growth 3Y-5.13%
OM growth 5Y3.06%
PM growth 3Y-14.08%
PM growth 5Y2.74%
GM growth 3Y1.18%
GM growth 5Y2.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HCKT is creating value.
HCKT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HCKT has been reduced compared to 5 years ago.
HCKT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.41 indicates that HCKT is not in any danger for bankruptcy at the moment.
HCKT has a better Altman-Z score (6.41) than 78.82% of its industry peers.
The Debt to FCF ratio of HCKT is 0.64, which is an excellent value as it means it would take HCKT, only 0.64 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.64, HCKT belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
HCKT has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
HCKT has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 6.41 |
ROIC/WACC1.56
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.71 indicates that HCKT should not have too much problems paying its short term obligations.
HCKT's Current ratio of 1.71 is in line compared to the rest of the industry. HCKT outperforms 49.41% of its industry peers.
A Quick Ratio of 1.71 indicates that HCKT should not have too much problems paying its short term obligations.
HCKT's Quick ratio of 1.71 is in line compared to the rest of the industry. HCKT outperforms 50.59% of its industry peers.
HCKT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.87% over the past year.
Measured over the past years, HCKT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.71% on average per year.
HCKT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.82%.
The Revenue has been growing slightly by 2.13% on average over the past years.
EPS 1Y (TTM)1.87%
EPS 3Y8.65%
EPS 5Y10.71%
EPS Q2Q%-13.95%
Revenue 1Y (TTM)5.82%
Revenue growth 3Y4.03%
Revenue growth 5Y2.13%
Sales Q2Q%-9.54%
3.2 Future
The Earnings Per Share is expected to grow by 1.49% on average over the next years.
HCKT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
EPS Next Y-7.51%
EPS Next 2Y1.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.74%
Revenue Next 2Y2.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.62, the valuation of HCKT can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HCKT indicates a rather cheap valuation: HCKT is cheaper than 87.06% of the companies listed in the same industry.
HCKT is valuated cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.94, the valuation of HCKT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HCKT is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.35. HCKT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.94 |
4.2 Price Multiples
61.18% of the companies in the same industry are more expensive than HCKT, based on the Enterprise Value to EBITDA ratio.
HCKT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCKT is cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 14.65 |
4.3 Compensation for Growth
HCKT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y1.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HCKT has a Yearly Dividend Yield of 2.72%.
Compared to an average industry Dividend Yield of 2.58, HCKT pays a better dividend. On top of this HCKT pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HCKT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
The dividend of HCKT is nicely growing with an annual growth rate of 7.93%!
HCKT has paid a dividend for at least 10 years, which is a reliable track record.
HCKT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.93%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
HCKT pays out 73.26% of its income as dividend. This is not a sustainable payout ratio.
HCKT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.26%
EPS Next 2Y1.49%
EPS Next 3YN/A
18.94
+1.28 (+7.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners84.54%
Inst Owner Change-1.11%
Ins Owners10.38%
Ins Owner Change0%
Market Cap521.04M
Revenue(TTM)313.86M
Net Income(TTM)16.95M
Analysts84.44
Price Target28.9 (52.59%)
Short Float %5.67%
Short Ratio5.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend0.44
Dividend Growth(5Y)7.93%
DP73.26%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.3%
Min EPS beat(2)-1.09%
Max EPS beat(2)0.49%
EPS beat(4)3
Avg EPS beat(4)4.29%
Min EPS beat(4)-1.09%
Max EPS beat(4)11.48%
EPS beat(8)7
Avg EPS beat(8)3.44%
EPS beat(12)10
Avg EPS beat(12)3.53%
EPS beat(16)14
Avg EPS beat(16)5.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.94%
Revenue beat(4)2
Avg Revenue beat(4)0.63%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)2.63%
Revenue beat(8)5
Avg Revenue beat(8)0.55%
Revenue beat(12)7
Avg Revenue beat(12)0.23%
Revenue beat(16)11
Avg Revenue beat(16)1.22%
PT rev (1m)0%
PT rev (3m)-16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.94 | ||
| P/S | 1.65 | ||
| P/FCF | 14.74 | ||
| P/OCF | 12.69 | ||
| P/B | 4.35 | ||
| P/tB | 21.14 | ||
| EV/EBITDA | 14.65 |
EPS(TTM)1.63
EY8.61%
EPS(NY)1.73
Fwd EY9.14%
FCF(TTM)1.29
FCFY6.79%
OCF(TTM)1.49
OCFY7.88%
SpS11.48
BVpS4.35
TBVpS0.9
PEG (NY)N/A
PEG (5Y)1.08
Graham Number12.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.46% | ||
| ROE | 14.15% | ||
| ROCE | 19.25% | ||
| ROIC | 13.77% | ||
| ROICexc | 14.75% | ||
| ROICexgc | 43.84% | ||
| OM | 9.36% | ||
| PM (TTM) | 5.37% | ||
| GM | 37.55% | ||
| FCFM | 11.2% |
ROA(3y)18.77%
ROA(5y)15.84%
ROE(3y)44.51%
ROE(5y)33.26%
ROIC(3y)27.2%
ROIC(5y)22.5%
ROICexc(3y)33.26%
ROICexc(5y)28.91%
ROICexgc(3y)192.93%
ROICexgc(5y)166.38%
ROCE(3y)38.01%
ROCE(5y)31.45%
ROICexgc growth 3Y-11.97%
ROICexgc growth 5Y9.73%
ROICexc growth 3Y-5.69%
ROICexc growth 5Y5.53%
OM growth 3Y-5.13%
OM growth 5Y3.06%
PM growth 3Y-14.08%
PM growth 5Y2.74%
GM growth 3Y1.18%
GM growth 5Y2.78%
F-Score5
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 127.54% | ||
| Cap/Sales | 1.81% | ||
| Interest Coverage | 22.23 | ||
| Cash Conversion | 120.71% | ||
| Profit Quality | 208.55% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 6.41 |
F-Score5
WACC8.83%
ROIC/WACC1.56
Cap/Depr(3y)119.95%
Cap/Depr(5y)95.2%
Cap/Sales(3y)1.42%
Cap/Sales(5y)1.24%
Profit Quality(3y)125.92%
Profit Quality(5y)249.68%
High Growth Momentum
Growth
EPS 1Y (TTM)1.87%
EPS 3Y8.65%
EPS 5Y10.71%
EPS Q2Q%-13.95%
EPS Next Y-7.51%
EPS Next 2Y1.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.82%
Revenue growth 3Y4.03%
Revenue growth 5Y2.13%
Sales Q2Q%-9.54%
Revenue Next Year-0.74%
Revenue Next 2Y2.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-41.54%
EBIT growth 3Y-1.31%
EBIT growth 5Y5.25%
EBIT Next Year25.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.78%
FCF growth 3Y0.42%
FCF growth 5Y2.93%
OCF growth 1Y4.59%
OCF growth 3Y0.98%
OCF growth 5Y2.42%
HACKETT GROUP INC/THE / HCKT FAQ
What is the ChartMill fundamental rating of HACKETT GROUP INC/THE (HCKT) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HCKT.
What is the valuation status for HCKT stock?
ChartMill assigns a valuation rating of 7 / 10 to HACKETT GROUP INC/THE (HCKT). This can be considered as Undervalued.
Can you provide the profitability details for HACKETT GROUP INC/THE?
HACKETT GROUP INC/THE (HCKT) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for HCKT stock?
The Earnings per Share (EPS) of HACKETT GROUP INC/THE (HCKT) is expected to decline by -7.51% in the next year.
Can you provide the dividend sustainability for HCKT stock?
The dividend rating of HACKETT GROUP INC/THE (HCKT) is 5 / 10 and the dividend payout ratio is 73.26%.