HACKETT GROUP INC/THE (HCKT) Stock Fundamental Analysis
NASDAQ:HCKT - Nasdaq - US4046091090 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to HCKT. HCKT was compared to 82 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HCKT was profitable.
In the past year HCKT had a positive cash flow from operations.
Each year in the past 5 years HCKT has been profitable.
In the past 5 years HCKT always reported a positive cash flow from operatings.
1.2 Ratios
HCKT has a Return On Assets of 12.54%. This is amongst the best in the industry. HCKT outperforms 91.46% of its industry peers.
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 89.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HCKT is significantly above the industry average of 21.64%.
The 3 year average ROIC (27.20%) for HCKT is well above the current ROIC(18.54%). The reason for the recent decline needs to be investigated.
| 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
With a decent Profit Margin value of 7.64%, HCKT is doing good in the industry, outperforming 71.95% of the companies in the same industry.
In the last couple of years the Profit Margin of HCKT has grown nicely.
HCKT's Operating Margin of 11.91% is fine compared to the rest 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.
HCKT has a Gross Margin (38.51%) which is in line with its industry peers.
In the last couple of years the Gross Margin of HCKT has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HCKT is creating value.
Compared to 1 year ago, HCKT has more shares outstanding
HCKT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HCKT has been reduced compared to a year ago.
2.2 Solvency
HCKT has an Altman-Z score of 8.39. This indicates that HCKT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.39, HCKT belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.40, HCKT belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
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 | 8.39 |
ROIC/WACC1.95
WACC9.52%
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.
The Current ratio of HCKT (1.59) is comparable to the rest of the industry.
A Quick Ratio of 1.59 indicates that HCKT should not have too much problems paying its short term obligations.
HCKT has a Quick ratio of 1.59. This is comparable to the rest of the industry: HCKT outperforms 48.78% 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 | 1.59 | ||
| 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%.
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 3.96%.
The Revenue has been growing slightly by 2.13% on average over the past years.
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
The Earnings Per Share is expected to grow by 5.41% on average over the next years.
The Revenue is expected to grow by 4.16% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.71, HCKT is valued correctly.
Based on the Price/Earnings ratio, HCKT is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
HCKT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.55.
The Price/Forward Earnings ratio is 13.39, which indicates a correct valuation of HCKT.
HCKT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HCKT is cheaper than 78.05% of the companies in the same industry.
HCKT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.39 |
4.2 Price Multiples
HCKT's Enterprise Value to EBITDA is on the same level as the industry average.
HCKT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HCKT is cheaper than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.55 | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
The excellent profitability rating of HCKT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y5.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, HCKT has a reasonable but not impressive dividend return.
HCKT's Dividend Yield is rather good when compared to the industry average which is at 2.52. HCKT pays more dividend than 89.02% of the companies in the same industry.
HCKT's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of HCKT grows each year by 7.93%, which is quite nice.
HCKT has been paying a dividend for at least 10 years, so it has 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.
The dividend of HCKT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.49%
EPS Next 2Y5.41%
EPS Next 3YN/A
25
+0.45 (+1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners83.22%
Inst Owner Change-0.33%
Ins Owners10.36%
Ins Owner Change2.4%
Market Cap691.50M
Analysts84.44
Price Target34.68 (38.72%)
Short Float %1.78%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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)-4.67%
PT rev (3m)-4.67%
EPS NQ rev (1m)-11.02%
EPS NQ rev (3m)-11.02%
EPS NY rev (1m)-6.27%
EPS NY rev (3m)-5.74%
Revenue NQ rev (1m)-2.92%
Revenue NQ rev (3m)-2.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.39 | ||
| P/S | 2.2 | ||
| P/FCF | 15.55 | ||
| P/OCF | 14.07 | ||
| P/B | 6.04 | ||
| P/tB | 31.39 | ||
| EV/EBITDA | 16.82 |
EPS(TTM)1.7
EY6.8%
EPS(NY)1.87
Fwd EY7.47%
FCF(TTM)1.61
FCFY6.43%
OCF(TTM)1.78
OCFY7.11%
SpS11.37
BVpS4.14
TBVpS0.8
PEG (NY)N/A
PEG (5Y)1.37
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 | 8.39 |
F-Score5
WACC9.52%
ROIC/WACC1.95
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%