HOULIHAN LOKEY INC (HLI)
US4415931009 - Common Stock
Overall HLI gets a fundamental rating of 5 out of 10. We evaluated HLI against 212 industry peers in the Capital Markets industry. HLI has an average financial health and profitability rating. HLI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HLI was profitable.
In the past year HLI had a positive cash flow from operations.
Each year in the past 5 years HLI has been profitable.
HLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLI has a Return On Assets of 8.75%. This is amongst the best in the industry. HLI outperforms 83.25% of its industry peers.
With a decent Return On Equity value of 14.63%, HLI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Return On Invested Capital of HLI (14.53%) is better than 89.00% of its industry peers.
HLI had an Average Return On Invested Capital over the past 3 years of 22.43%. This is significantly above the industry average of 10.87%.
The 3 year average ROIC (22.43%) for HLI is well above the current ROIC(14.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.75% | ||
| ROE | 14.63% | ||
| ROIC | 14.53% |
ROA(3y)12.21%
ROA(5y)11.75%
ROE(3y)22.9%
ROE(5y)21.04%
ROIC(3y)22.43%
ROIC(5y)20.41%
1.3 Margins
The Profit Margin of HLI (14.08%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HLI has declined.
HLI has a Operating Margin of 19.08%. This is in the lower half of the industry: HLI underperforms 60.77% of its industry peers.
HLI's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 14.08% | ||
| GM | N/A |
OM growth 3Y-1.57%
OM growth 5Y-3.23%
PM growth 3Y-3.95%
PM growth 5Y-4.71%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HLI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HLI has been increased compared to 5 years ago.
Compared to 1 year ago, HLI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.05 indicates that HLI is not in any danger for bankruptcy at the moment.
HLI has a better Altman-Z score (6.05) than 89.00% of its industry peers.
There is no outstanding debt for HLI. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.81 indicates that HLI may have some problems paying its short term obligations.
With a Current ratio value of 0.81, HLI is not doing good in the industry: 62.68% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that HLI may have some problems paying its short term obligations.
HLI has a Quick ratio of 0.81. This is in the lower half of the industry: HLI underperforms 62.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
HLI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.50%.
Measured over the past years, HLI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.59% on average per year.
The Revenue has been growing slightly by 0.16% in the past year.
Measured over the past years, HLI shows a quite strong growth in Revenue. The Revenue has been growing by 13.43% on average per year.
EPS 1Y (TTM)-8.5%
EPS 3Y12.23%
EPS 5Y13.59%
EPS growth Q2Q7.02%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y15.99%
Revenue growth 5Y13.43%
Revenue growth Q2Q11.97%
3.2 Future
Based on estimates for the next years, HLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.53% on average per year.
The Revenue is expected to grow by 11.79% on average over the next years. This is quite good.
EPS Next Y-1.29%
EPS Next 2Y12.39%
EPS Next 3Y13.53%
EPS Next 5YN/A
Revenue Next Year6.38%
Revenue Next 2Y12.26%
Revenue Next 3Y11.79%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
HLI is valuated quite expensively with a Price/Earnings ratio of 30.98.
77.99% of the companies in the same industry are cheaper than HLI, based on the Price/Earnings ratio.
HLI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 23.40, which indicates a rather expensive current valuation of HLI.
Based on the Price/Forward Earnings ratio, HLI is valued a bit more expensive than 67.94% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.58, HLI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLI is valued a bit cheaper than 61.24% of the companies in the same industry.
HLI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.62 | ||
| EV/EBITDA | 22.69 |
4.3 Compensation for Growth
The decent profitability rating of HLI may justify a higher PE ratio.
HLI's earnings are expected to grow with 13.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.28
EPS Next 2Y12.39%
EPS Next 3Y13.53%
5. Dividend
5.1 Amount
HLI has a Yearly Dividend Yield of 1.69%.
Compared to an average industry Dividend Yield of 7.31, HLI is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.40, HLI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
The dividend of HLI is nicely growing with an annual growth rate of 21.13%!
HLI has paid a dividend for at least 10 years, which is a reliable track record.
As HLI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)21.13%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
HLI pays out 56.12% of its income as dividend. This is a bit on the high side, but may be sustainable.
HLI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.12%
EPS Next 2Y12.39%
EPS Next 3Y13.53%
HOULIHAN LOKEY INC
NYSE:HLI (5/6/2024, 5:30:00 PM)
After market: 134.13 0 (0%)134.13
+2.23 (+1.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.98 | ||
| Fwd PE | 23.4 | ||
| 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)N/A
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.75% | ||
| ROE | 14.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.08% | ||
| PM (TTM) | 14.08% | ||
| GM | N/A | ||
| 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.81 | ||
| 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)-8.5%
EPS 3Y12.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.16%
Revenue growth 3Y15.99%
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