HACKETT GROUP INC/THE (HCKT)
US4046091090 - Common Stock
HCKT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 86 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 has a correct valuation and a medium growth rate. This makes HCKT very considerable for quality investing!
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.
HCKT had positive earnings in each of the past 5 years.
HCKT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HCKT's Return On Assets of 18.82% is amongst the best of the industry. HCKT outperforms 97.62% of its industry peers.
HCKT's Return On Equity of 37.91% is amongst the best of the industry. HCKT outperforms 97.62% of its industry peers.
With an excellent Return On Invested Capital value of 28.42%, HCKT belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HCKT is significantly above the industry average of 12.82%.
The 3 year average ROIC (27.74%) for HCKT is below the current ROIC(28.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.82% | ||
| ROE | 37.91% | ||
| ROIC | 28.42% |
ROA(3y)20.29%
ROA(5y)15.15%
ROE(3y)45.58%
ROE(5y)31.51%
ROIC(3y)27.74%
ROIC(5y)21.95%
1.3 Margins
The Profit Margin of HCKT (11.51%) is better than 85.71% of its industry peers.
HCKT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 17.00%, HCKT belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of HCKT has grown nicely.
HCKT has a Gross Margin of 39.24%. This is in the better half of the industry: HCKT outperforms 63.10% of its industry peers.
In the last couple of years the Gross Margin of HCKT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17% | ||
| PM (TTM) | 11.51% | ||
| GM | 39.24% |
OM growth 3Y28.72%
OM growth 5Y6.8%
PM growth 3Y71.16%
PM growth 5Y6.61%
GM growth 3Y8.69%
GM growth 5Y3.02%
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.
Compared to 5 years ago, HCKT has less shares outstanding
Compared to 1 year ago, HCKT has an improved debt to assets ratio.
2.2 Solvency
HCKT has an Altman-Z score of 7.12. This indicates that HCKT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HCKT (7.12) is better than 84.52% of its industry peers.
HCKT has a debt to FCF ratio of 0.98. This is a very positive value and a sign of high solvency as it would only need 0.98 years to pay back of all of its debts.
HCKT has a Debt to FCF ratio of 0.98. This is amongst the best in the industry. HCKT outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that HCKT is not too dependend on debt financing.
HCKT's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. HCKT outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 0.98 | ||
| Altman-Z | 7.12 |
ROIC/WACC2.65
WACC10.72%
2.3 Liquidity
HCKT has a Current Ratio of 1.51. This is a normal value and indicates that HCKT is financially healthy and should not expect problems in meeting its short term obligations.
HCKT's Current ratio of 1.51 is in line compared to the rest of the industry. HCKT outperforms 51.19% of its industry peers.
A Quick Ratio of 1.51 indicates that HCKT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, HCKT is in line with its industry, outperforming 51.19% of the companies in the same industry.
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 | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.70% 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 8.03% on average per year.
HCKT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.97%.
HCKT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.74% yearly.
EPS 1Y (TTM)4.7%
EPS 3Y30.62%
EPS 5Y8.03%
EPS growth Q2Q8.33%
Revenue 1Y (TTM)0.97%
Revenue growth 3Y7.39%
Revenue growth 5Y0.74%
Revenue growth Q2Q3.26%
3.2 Future
HCKT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
The Revenue is expected to grow by 5.68% on average over the next years.
EPS Next Y10.5%
EPS Next 2Y9.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.38%
Revenue Next 2Y5.68%
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 stable.
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
The Price/Earnings ratio is 14.08, which indicates a correct valuation of HCKT.
Based on the Price/Earnings ratio, HCKT is valued a bit cheaper than the industry average as 77.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.67, HCKT is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.75, which indicates a correct valuation of HCKT.
Based on the Price/Forward Earnings ratio, HCKT is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
HCKT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
HCKT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HCKT is cheaper than 67.86% of the companies in the same industry.
HCKT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HCKT is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.2 | ||
| EV/EBITDA | 11.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HCKT may justify a higher PE ratio.
PEG (NY)1.34
PEG (5Y)1.75
EPS Next 2Y9.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, HCKT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.81, HCKT pays a better dividend. On top of this HCKT pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, HCKT has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
On average, the dividend of HCKT grows each year by 33.51%, 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)33.51%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
35.06% of the earnings are spent on dividend by HCKT. This is a low number and sustainable payout ratio.
The dividend of HCKT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.06%
EPS Next 2Y9.24%
EPS Next 3YN/A
HACKETT GROUP INC/THE
NASDAQ:HCKT (5/1/2024, 10:54:39 AM)
21.97
+0.28 (+1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap606.15M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.34
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.82% | ||
| ROE | 37.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17% | ||
| PM (TTM) | 11.51% | ||
| GM | 39.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)4.7%
EPS 3Y30.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.97%
Revenue growth 3Y7.39%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y