HACKETT GROUP INC/THE (HCKT) Stock Fundamental Analysis
NASDAQ:HCKT - Nasdaq - US4046091090 - Common Stock - Currency: USD
HCKT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. HCKT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HCKT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HCKT had positive earnings in the past year.
In the past year HCKT had a positive cash flow from operations.
In the past 5 years HCKT has always been profitable.
Each year in the past 5 years HCKT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.54%, HCKT belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
HCKT's Return On Equity of 21.01% is amongst the best of the industry. HCKT outperforms 84.15% of its industry peers.
HCKT has a Return On Invested Capital of 18.54%. This is amongst the best in the industry. HCKT outperforms 90.24% of its industry peers.
HCKT had an Average Return On Invested Capital over the past 3 years of 27.20%. This is significantly above the industry average of 21.60%.
The last Return On Invested Capital (18.54%) for HCKT is well below the 3 year average (27.20%), which needs to be investigated, but indicates that HCKT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.54% | ||
| ROE | 21.01% | ||
| ROIC | 18.54% |
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 better Profit Margin (7.64%) than 71.95% of its industry peers.
HCKT's Profit Margin has improved in the last couple of years.
HCKT has a Operating Margin of 11.91%. This is in the better half of the industry: HCKT outperforms 70.73% of its industry peers.
In the last couple of years the Operating Margin of HCKT has grown nicely.
With a Gross Margin value of 38.51%, HCKT perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
HCKT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 7.64% | ||
| GM | 38.51% |
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
HCKT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for HCKT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.03 indicates that HCKT is not in any danger for bankruptcy at the moment.
The Altman-Z score of HCKT (8.03) is better than 86.59% of its industry peers.
HCKT has a debt to FCF ratio of 0.40. This is a very positive value and a sign of high solvency as it would only need 0.40 years to pay back of all of its debts.
The Debt to FCF ratio of HCKT (0.40) is better than 87.80% of its industry peers.
HCKT has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
HCKT has a better Debt to Equity ratio (0.16) than 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.4 | ||
| Altman-Z | 8.03 |
ROIC/WACC1.97
WACC9.39%
2.3 Liquidity
HCKT has a Current Ratio of 1.59. This is a normal value and indicates that HCKT is financially healthy and should not expect problems in meeting its short term obligations.
HCKT has a Current ratio of 1.59. This is comparable to the rest of the industry: HCKT outperforms 48.78% of its industry peers.
HCKT has a Quick Ratio of 1.59. This is a normal value and indicates that HCKT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.59, HCKT perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
The current and quick ratio evaluation for HCKT is rather negative, while it does have 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 | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
HCKT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.59%.
HCKT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.71% yearly.
The Revenue has been growing slightly by 3.96% in the past year.
HCKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.13% yearly.
EPS 1Y (TTM)7.59%
EPS 3Y8.65%
EPS 5Y10.71%
EPS Q2Q%5.13%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.03%
Revenue growth 5Y2.13%
Sales Q2Q%0.88%
3.2 Future
HCKT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.41% yearly.
Based on estimates for the next years, HCKT will show a small growth in Revenue. The Revenue will grow by 4.16% on average per year.
EPS Next Y-0.23%
EPS Next 2Y5.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.88%
Revenue Next 2Y4.16%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.72, HCKT is valued correctly.
80.49% of the companies in the same industry are more expensive than HCKT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.54, HCKT is valued rather cheaply.
The Price/Forward Earnings ratio is 12.49, which indicates a correct valuation of HCKT.
81.71% of the companies in the same industry are more expensive than HCKT, based on the Price/Forward Earnings ratio.
HCKT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
HCKT's Enterprise Value to EBITDA ratio is in line with the industry average.
HCKT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCKT is cheaper than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 15.71 |
4.3 Compensation for Growth
HCKT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.28
EPS Next 2Y5.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HCKT has a Yearly Dividend Yield of 2.02%.
HCKT's Dividend Yield is rather good when compared to the industry average which is at 2.39. HCKT pays more dividend than 89.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HCKT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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
50.49% of the earnings are spent on dividend by HCKT. This is a bit on the high side, but may be sustainable.
HCKT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP50.49%
EPS Next 2Y5.41%
EPS Next 3YN/A
23.32
-0.43 (-1.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners82.53%
Inst Owner Change0.01%
Ins Owners10.32%
Ins Owner Change2.4%
Market Cap645.03M
Analysts84.44
Price Target34.68 (48.71%)
Short Float %3.17%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Yearly Dividend0.44
Dividend Growth(5Y)7.93%
DP50.49%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.99%
Min EPS beat(2)0.49%
Max EPS beat(2)11.48%
EPS beat(4)4
Avg EPS beat(4)5.17%
Min EPS beat(4)0.49%
Max EPS beat(4)11.48%
EPS beat(8)8
Avg EPS beat(8)3.88%
EPS beat(12)11
Avg EPS beat(12)4.51%
EPS beat(16)15
Avg EPS beat(16)8.04%
Revenue beat(2)1
Avg Revenue beat(2)0.67%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)2.63%
Revenue beat(4)3
Avg Revenue beat(4)1%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)2.63%
Revenue beat(8)6
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)0.57%
Revenue beat(16)12
Avg Revenue beat(16)1.9%
PT rev (1m)0%
PT rev (3m)-4.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 12.49 | ||
| P/S | 2.05 | ||
| P/FCF | 14.51 | ||
| P/OCF | 13.13 | ||
| P/B | 5.64 | ||
| P/tB | 29.28 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)1.7
EY7.29%
EPS(NY)1.87
Fwd EY8%
FCF(TTM)1.61
FCFY6.89%
OCF(TTM)1.78
OCFY7.62%
SpS11.37
BVpS4.14
TBVpS0.8
PEG (NY)N/A
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.54% | ||
| ROE | 21.01% | ||
| ROCE | 25.92% | ||
| ROIC | 18.54% | ||
| ROICexc | 19.8% | ||
| ROICexgc | 62.34% | ||
| OM | 11.91% | ||
| PM (TTM) | 7.64% | ||
| GM | 38.51% | ||
| FCFM | 14.13% |
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%
ROICexcg growth 3Y-11.97%
ROICexcg 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 Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.4 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 112.76% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 24.54 | ||
| Cash Conversion | 118.07% | ||
| Profit Quality | 184.91% | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 8.03 |
F-Score5
WACC9.39%
ROIC/WACC1.97
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)7.59%
EPS 3Y8.65%
EPS 5Y10.71%
EPS Q2Q%5.13%
EPS Next Y-0.23%
EPS Next 2Y5.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.03%
Revenue growth 5Y2.13%
Sales Q2Q%0.88%
Revenue Next Year2.88%
Revenue Next 2Y4.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-26.27%
EBIT growth 3Y-1.31%
EBIT growth 5Y5.25%
EBIT Next Year46.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.34%
FCF growth 3Y0.42%
FCF growth 5Y2.93%
OCF growth 1Y-1.32%
OCF growth 3Y0.98%
OCF growth 5Y2.42%