HOULIHAN LOKEY INC (HLI) Stock Fundamental Analysis
USA - NYSE:HLI - US4415931009 - Common Stock
205.19 USD
-2.96 (-1.42%)
205.19 USD
0 (0%)
Overall HLI gets a fundamental rating of 6 out of 10. We evaluated HLI against 238 industry peers in the Capital Markets industry. While HLI has a great profitability rating, there are some minor concerns on its financial health. HLI is valued quite expensively, but it does show have an excellent growth rating. These ratings could make HLI a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
HLI had positive earnings in the past year.
HLI had a positive operating cash flow in the past year.
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's Return On Assets of 11.61% is amongst the best of the industry. HLI outperforms 92.02% of its industry peers.
HLI has a better Return On Equity (18.75%) than 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 18.53%, HLI belongs to the best of the industry, outperforming 94.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HLI is significantly above the industry average of 7.61%.
The 3 year average ROIC (15.77%) for HLI is below the current ROIC(18.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.61% | ||
| ROE | 18.75% | ||
| ROIC | 18.53% |
ROA(3y)9.29%
ROA(5y)11.19%
ROE(3y)16.47%
ROE(5y)20.47%
ROIC(3y)15.77%
ROIC(5y)19.56%
1.3 Margins
HLI has a Profit Margin of 16.46%. This is comparable to the rest of the industry: HLI outperforms 51.26% of its industry peers.
In the last couple of years the Profit Margin of HLI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 23.16%, HLI is in line with its industry, outperforming 44.96% of the companies in the same industry.
HLI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.16% | ||
| PM (TTM) | 16.46% | ||
| GM | N/A |
OM growth 3Y-4.82%
OM growth 5Y3.29%
PM growth 3Y-4.63%
PM growth 5Y1.08%
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.
The debt/assets ratio for HLI has been reduced compared to a year ago.
2.2 Solvency
HLI has an Altman-Z score of 8.27. This indicates that HLI is financially healthy and has little risk of bankruptcy at the moment.
HLI has a better Altman-Z score (8.27) than 89.92% of its industry peers.
The Debt to FCF ratio of HLI is 0.02, which is an excellent value as it means it would take HLI, only 0.02 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.02, HLI belongs to the best of the industry, outperforming 93.28% of the companies in the same industry.
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 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 8.27 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.97 indicates that HLI may have some problems paying its short term obligations.
HLI has a Current ratio (0.97) which is comparable to the rest of the industry.
A Quick Ratio of 0.97 indicates that HLI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.97, HLI is in line with its industry, outperforming 44.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.38% over the past year.
HLI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.36% yearly.
The Revenue has grown by 23.31% in the past year. This is a very strong growth!
Measured over the past years, HLI shows a quite strong growth in Revenue. The Revenue has been growing by 15.56% on average per year.
EPS 1Y (TTM)49.38%
EPS 3Y-4.01%
EPS 5Y14.36%
EPS Q2Q%75.41%
Revenue 1Y (TTM)23.31%
Revenue growth 3Y1.72%
Revenue growth 5Y15.56%
Sales Q2Q%17.86%
3.2 Future
HLI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.26% yearly.
HLI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.03% yearly.
EPS Next Y23.22%
EPS Next 2Y18.71%
EPS Next 3Y16.26%
EPS Next 5YN/A
Revenue Next Year14.48%
Revenue Next 2Y14.48%
Revenue Next 3Y13.03%
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
A Price/Earnings ratio of 28.50 indicates a quite expensive valuation of HLI.
Based on the Price/Earnings ratio, HLI is valued a bit more expensive than 67.65% of the companies in the same industry.
HLI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
HLI is valuated rather expensively with a Price/Forward Earnings ratio of 23.19.
HLI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HLI is more expensive than 61.76% of the companies in the same industry.
HLI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 23.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLI is valued a bit cheaper than the industry average as 71.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.51 | ||
| EV/EBITDA | 21.9 |
4.3 Compensation for Growth
HLI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HLI may justify a higher PE ratio.
HLI's earnings are expected to grow with 16.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)1.98
EPS Next 2Y18.71%
EPS Next 3Y16.26%
5. Dividend
5.1 Amount
HLI has a Yearly Dividend Yield of 1.15%. Purely for dividend investing, there may be better candidates out there.
HLI's Dividend Yield is slightly below the industry average, which is at 7.96.
With a Dividend Yield of 1.15, HLI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
On average, the dividend of HLI grows each year by 14.04%, which is quite nice.
HLI has been paying a dividend for at least 10 years, so it has a reliable track record.
HLI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.04%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
HLI pays out 40.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
HLI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.76%
EPS Next 2Y18.71%
EPS Next 3Y16.26%
205.19
-2.96 (-1.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.11%
Inst Owner Change1.05%
Ins Owners0.13%
Ins Owner Change2.78%
Market Cap14.43B
Analysts70
Price Target211.55 (3.1%)
Short Float %1.65%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Yearly Dividend2.38
Dividend Growth(5Y)14.04%
DP40.76%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.99%
Min EPS beat(2)19.63%
Max EPS beat(2)26.35%
EPS beat(4)4
Avg EPS beat(4)15.86%
Min EPS beat(4)7.29%
Max EPS beat(4)26.35%
EPS beat(8)8
Avg EPS beat(8)9.85%
EPS beat(12)10
Avg EPS beat(12)8%
EPS beat(16)14
Avg EPS beat(16)12.2%
Revenue beat(2)2
Avg Revenue beat(2)5.22%
Min Revenue beat(2)4.85%
Max Revenue beat(2)5.6%
Revenue beat(4)4
Avg Revenue beat(4)5.15%
Min Revenue beat(4)4.31%
Max Revenue beat(4)5.83%
Revenue beat(8)7
Avg Revenue beat(8)3.41%
Revenue beat(12)9
Avg Revenue beat(12)2.62%
Revenue beat(16)13
Avg Revenue beat(16)6.94%
PT rev (1m)2.47%
PT rev (3m)15.01%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)3.51%
EPS NY rev (1m)8.32%
EPS NY rev (3m)9.46%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)3.88%
Revenue NY rev (1m)2.29%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.5 | ||
| Fwd PE | 23.19 | ||
| P/S | 5.81 | ||
| P/FCF | 19.51 | ||
| P/OCF | 18.46 | ||
| P/B | 6.62 | ||
| P/tB | 21.25 | ||
| EV/EBITDA | 21.9 |
EPS(TTM)7.2
EY3.51%
EPS(NY)8.85
Fwd EY4.31%
FCF(TTM)10.52
FCFY5.13%
OCF(TTM)11.11
OCFY5.42%
SpS35.29
BVpS30.97
TBVpS9.66
PEG (NY)1.23
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.61% | ||
| ROE | 18.75% | ||
| ROCE | 25.21% | ||
| ROIC | 18.53% | ||
| ROICexc | 28.43% | ||
| ROICexgc | N/A | ||
| OM | 23.16% | ||
| PM (TTM) | 16.46% | ||
| GM | N/A | ||
| FCFM | 29.8% |
ROA(3y)9.29%
ROA(5y)11.19%
ROE(3y)16.47%
ROE(5y)20.47%
ROIC(3y)15.77%
ROIC(5y)19.56%
ROICexc(3y)27.01%
ROICexc(5y)39.46%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.46%
ROCE(5y)26.61%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-21.39%
ROICexc growth 5Y3.92%
OM growth 3Y-4.82%
OM growth 5Y3.29%
PM growth 3Y-4.63%
PM growth 5Y1.08%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 86.79% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 444.85 | ||
| Cash Conversion | 125.41% | ||
| Profit Quality | 181.11% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 8.27 |
F-Score9
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)139.05%
Cap/Depr(5y)105.57%
Cap/Sales(3y)2.65%
Cap/Sales(5y)1.85%
Profit Quality(3y)109.81%
Profit Quality(5y)135.31%
High Growth Momentum
Growth
EPS 1Y (TTM)49.38%
EPS 3Y-4.01%
EPS 5Y14.36%
EPS Q2Q%75.41%
EPS Next Y23.22%
EPS Next 2Y18.71%
EPS Next 3Y16.26%
EPS Next 5YN/A
Revenue 1Y (TTM)23.31%
Revenue growth 3Y1.72%
Revenue growth 5Y15.56%
Sales Q2Q%17.86%
Revenue Next Year14.48%
Revenue Next 2Y14.48%
Revenue Next 3Y13.03%
Revenue Next 5YN/A
EBIT growth 1Y49.24%
EBIT growth 3Y-3.18%
EBIT growth 5Y19.36%
EBIT Next Year26.68%
EBIT Next 3Y21.87%
EBIT Next 5YN/A
FCF growth 1Y237.97%
FCF growth 3Y3.58%
FCF growth 5Y24.82%
OCF growth 1Y178.41%
OCF growth 3Y4.83%
OCF growth 5Y24.15%