HOULIHAN LOKEY INC (HLI) Stock Fundamental Analysis
NYSE:HLI - New York Stock Exchange, Inc. - US4415931009 - Common Stock - Currency: USD
Taking everything into account, HLI scores 5 out of 10 in our fundamental rating. HLI was compared to 230 industry peers in the Capital Markets industry. HLI has only an average score on both its financial health and profitability. While showing a medium growth rate, HLI is valued expensive at the moment.
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.
Of the past 5 years HLI 4 years were profitable.
HLI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HLI's Return On Assets of 10.32% is amongst the best of the industry. HLI outperforms 88.70% of its industry peers.
Looking at the Return On Equity, with a value of 17.25%, HLI belongs to the top of the industry, outperforming 83.48% of the companies in the same industry.
The Return On Invested Capital of HLI (16.91%) is better than 93.91% of its industry peers.
HLI had an Average Return On Invested Capital over the past 3 years of 20.04%. This is significantly above the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 17.25% | ||
| ROIC | 16.91% |
ROA(3y)10.86%
ROA(5y)11.28%
ROE(3y)20.45%
ROE(5y)20.52%
ROIC(3y)20.04%
ROIC(5y)19.66%
1.3 Margins
With a Profit Margin value of 16.00%, HLI perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
In the last couple of years the Profit Margin of HLI has remained more or less at the same level.
HLI has a Operating Margin (21.61%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HLI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.61% | ||
| PM (TTM) | 16% | ||
| GM | N/A |
OM growth 3Y-10.86%
OM growth 5Y-1.27%
PM growth 3Y-10.62%
PM growth 5Y-0.04%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HLI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HLI has an Altman-Z score of 6.80. This indicates that HLI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.80, HLI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
HLI has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
HLI's Debt to FCF ratio of 0.02 is amongst the best of the industry. HLI outperforms 92.17% of its industry peers.
HLI has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
HLI has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. HLI outperforms 84.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.8 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.88 indicates that HLI may have some problems paying its short term obligations.
HLI's Current ratio of 0.88 is on the low side compared to the rest of the industry. HLI is outperformed by 60.87% of its industry peers.
A Quick Ratio of 0.88 indicates that HLI may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, HLI is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
HLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.87%, which is quite impressive.
Measured over the past years, HLI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.36% on average per year.
EPS 1Y (TTM)39.87%
EPS 3Y-4.01%
EPS 5Y14.36%
EPS Q2Q%54.33%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.05%
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 13.49% on average per year.
Based on estimates for the next years, HLI will show a quite strong growth in Revenue. The Revenue will grow by 10.63% on average per year.
EPS Next Y12.56%
EPS Next 2Y13.53%
EPS Next 3Y13.49%
EPS Next 5YN/A
Revenue Next Year11.57%
Revenue Next 2Y11.58%
Revenue Next 3Y10.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.57 indicates a quite expensive valuation of HLI.
Based on the Price/Earnings ratio, HLI is valued a bit more expensive than the industry average as 66.96% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of HLI to the average of the S&P500 Index (25.91), we can say HLI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.49, the valuation of HLI can be described as rather expensive.
HLI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HLI is more expensive than 63.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. HLI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 24.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLI indicates a somewhat cheap valuation: HLI is cheaper than 70.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HLI is valued a bit cheaper than 61.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| EV/EBITDA | 21.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HLI does not grow enough to justify the current Price/Earnings ratio.
HLI has a very decent profitability rating, which may justify a higher PE ratio.
HLI's earnings are expected to grow with 13.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)1.92
EPS Next 2Y13.53%
EPS Next 3Y13.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, HLI has a reasonable but not impressive dividend return.
HLI's Dividend Yield is slightly below the industry average, which is at 8.11.
With a Dividend Yield of 1.33, HLI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of HLI is nicely growing with an annual growth rate of 16.14%!
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)16.14%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
HLI pays out 45.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HLI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.21%
EPS Next 2Y13.53%
EPS Next 3Y13.49%
173.14
+0.3 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners103.38%
Inst Owner Change0.99%
Ins Owners0.13%
Ins Owner Change-1.31%
Market Cap12.14B
Analysts69.23
Price Target178.16 (2.9%)
Short Float %1.88%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend2.15
Dividend Growth(5Y)16.14%
DP45.21%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.74%
Min EPS beat(2)7.29%
Max EPS beat(2)10.19%
EPS beat(4)4
Avg EPS beat(4)5.09%
Min EPS beat(4)0.24%
Max EPS beat(4)10.19%
EPS beat(8)7
Avg EPS beat(8)4.66%
EPS beat(12)10
Avg EPS beat(12)6.05%
EPS beat(16)14
Avg EPS beat(16)11.68%
Revenue beat(2)2
Avg Revenue beat(2)5.07%
Min Revenue beat(2)4.31%
Max Revenue beat(2)5.83%
Revenue beat(4)3
Avg Revenue beat(4)2.84%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)5.83%
Revenue beat(8)6
Avg Revenue beat(8)1.84%
Revenue beat(12)9
Avg Revenue beat(12)2.21%
Revenue beat(16)12
Avg Revenue beat(16)8.16%
PT rev (1m)-9.03%
PT rev (3m)-7.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.57 | ||
| Fwd PE | 24.49 | ||
| P/S | 5.41 | ||
| P/FCF | 17.91 | ||
| P/OCF | 16.97 | ||
| P/B | 5.84 | ||
| P/tB | 21.01 | ||
| EV/EBITDA | 21.85 |
EPS(TTM)6.28
EY3.63%
EPS(NY)7.07
Fwd EY4.08%
FCF(TTM)9.67
FCFY5.58%
OCF(TTM)10.2
OCFY5.89%
SpS31.99
BVpS29.66
TBVpS8.24
PEG (NY)2.19
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 17.25% | ||
| ROCE | 22.51% | ||
| ROIC | 16.91% | ||
| ROICexc | 26.88% | ||
| ROICexgc | N/A | ||
| OM | 21.61% | ||
| PM (TTM) | 16% | ||
| GM | N/A | ||
| FCFM | 30.23% |
ROA(3y)10.86%
ROA(5y)11.28%
ROE(3y)20.45%
ROE(5y)20.52%
ROIC(3y)20.04%
ROIC(5y)19.66%
ROICexc(3y)39.11%
ROICexc(5y)39.19%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.67%
ROCE(5y)26.17%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-23.15%
ROICexc growth 5Y-1.65%
OM growth 3Y-10.86%
OM growth 5Y-1.27%
PM growth 3Y-10.62%
PM growth 5Y-0.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 109.73% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 354.44 | ||
| Cash Conversion | 137.87% | ||
| Profit Quality | 188.95% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.8 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)112.97%
Cap/Depr(5y)110.26%
Cap/Sales(3y)2.22%
Cap/Sales(5y)1.88%
Profit Quality(3y)97.77%
Profit Quality(5y)123.89%
High Growth Momentum
Growth
EPS 1Y (TTM)39.87%
EPS 3Y-4.01%
EPS 5Y14.36%
EPS Q2Q%54.33%
EPS Next Y12.56%
EPS Next 2Y13.53%
EPS Next 3Y13.49%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.05%
Revenue Next Year11.57%
Revenue Next 2Y11.58%
Revenue Next 3Y10.63%
Revenue Next 5YN/A
EBIT growth 1Y38.24%
EBIT growth 3Y-3.85%
EBIT growth 5Y10.62%
EBIT Next Year45.75%
EBIT Next 3Y23.71%
EBIT Next 5YN/A
FCF growth 1Y1067.32%
FCF growth 3Y-22.66%
FCF growth 5Y3.76%
OCF growth 1Y2013.2%
OCF growth 3Y-17.26%
OCF growth 5Y7.93%