HOULIHAN LOKEY INC (HLI) Stock Fundamental Analysis
USA - NYSE:HLI - US4415931009 - Common Stock
180.33 USD
+0.57 (+0.32%)
180.33 USD
0 (0%)
Taking everything into account, HLI scores 6 out of 10 in our fundamental rating. HLI was compared to 237 industry peers in the Capital Markets industry. HLI has an excellent profitability rating, but there are some minor concerns on its financial health. HLI is growing strongly while it is still valued neutral. This is a good combination! This makes HLI very considerable for growth investing!
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
Looking at the Return On Assets, with a value of 11.61%, HLI belongs to the top of the industry, outperforming 91.98% of the companies in the same industry.
The Return On Equity of HLI (18.75%) is better than 85.65% of its industry peers.
The Return On Invested Capital of HLI (18.53%) is better than 94.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLI is significantly above the industry average of 7.63%.
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 (16.46%) which is in line with its industry peers.
HLI's Profit Margin has been stable in the last couple of years.
HLI has a Operating Margin (23.16%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HLI has grown nicely.
| 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
The number of shares outstanding for HLI has been increased compared to 1 year ago.
HLI has more shares outstanding than it did 5 years ago.
HLI has a better debt/assets ratio than last year.
2.2 Solvency
HLI has an Altman-Z score of 7.48. This indicates that HLI is financially healthy and has little risk of bankruptcy at the moment.
HLI has a better Altman-Z score (7.48) than 91.56% 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.
HLI has a better Debt to FCF ratio (0.02) than 93.67% 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 85.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 7.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HLI has a Current Ratio of 0.97. This is a bad value and indicates that HLI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.97, HLI is doing worse than 61.18% of the companies in the same industry.
A Quick Ratio of 0.97 indicates that HLI may have some problems paying its short term obligations.
HLI's Quick ratio of 0.97 is on the low side compared to the rest of the industry. HLI is outperformed by 60.76% of its industry peers.
| 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 46.62% 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.
HLI shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.01%.
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)46.62%
EPS 3Y-4.01%
EPS 5Y14.36%
EPS Q2Q%26.03%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y1.72%
Revenue growth 5Y15.56%
Sales Q2Q%14.7%
3.2 Future
The Earnings Per Share is expected to grow by 16.38% on average over the next years. This is quite good.
Based on estimates for the next years, HLI will show a quite strong growth in Revenue. The Revenue will grow by 13.08% on average per year.
EPS Next Y26.8%
EPS Next 2Y19.49%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue Next Year15.49%
Revenue Next 2Y14.57%
Revenue Next 3Y13.08%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HLI is valuated rather expensively with a Price/Earnings ratio of 23.79.
Based on the Price/Earnings ratio, HLI is valued a bit more expensive than 64.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of HLI to the average of the S&P500 Index (26.06), we can say HLI is valued inline with the index average.
The Price/Forward Earnings ratio is 20.11, which indicates a rather expensive current valuation of HLI.
The rest of the industry has a similar Price/Forward Earnings ratio as HLI.
HLI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 20.11 |
4.2 Price Multiples
73.84% of the companies in the same industry are more expensive than HLI, based on the Enterprise Value to EBITDA ratio.
HLI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.15 | ||
| EV/EBITDA | 19.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HLI has a very decent profitability rating, which may justify a higher PE ratio.
HLI's earnings are expected to grow with 16.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)1.66
EPS Next 2Y19.49%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, HLI has a reasonable but not impressive dividend return.
HLI's Dividend Yield is slightly below the industry average, which is at 8.49.
Compared to an average S&P500 Dividend Yield of 2.37, HLI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
5.2 History
The dividend of HLI is nicely growing with an annual growth rate of 14.04%!
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.
The dividend of HLI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP40.76%
EPS Next 2Y19.49%
EPS Next 3Y16.38%
180.33
+0.57 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners103.13%
Inst Owner Change1.49%
Ins Owners0.13%
Ins Owner Change2.97%
Market Cap12.68B
Revenue(TTM)2.57B
Net Income(TTM)408.30M
Analysts70
Price Target218.86 (21.37%)
Short Float %2.1%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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)3.46%
PT rev (3m)6.01%
EPS NQ rev (1m)3.47%
EPS NQ rev (3m)2.94%
EPS NY rev (1m)2.89%
EPS NY rev (3m)11.47%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 20.11 | ||
| P/S | 5.11 | ||
| P/FCF | 17.15 | ||
| P/OCF | 16.22 | ||
| P/B | 5.82 | ||
| P/tB | 18.67 | ||
| EV/EBITDA | 19.1 |
EPS(TTM)7.58
EY4.2%
EPS(NY)8.97
Fwd EY4.97%
FCF(TTM)10.52
FCFY5.83%
OCF(TTM)11.11
OCFY6.16%
SpS35.29
BVpS30.97
TBVpS9.66
PEG (NY)0.89
PEG (5Y)1.66
Graham Number72.68
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 7.48 |
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)46.62%
EPS 3Y-4.01%
EPS 5Y14.36%
EPS Q2Q%26.03%
EPS Next Y26.8%
EPS Next 2Y19.49%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue 1Y (TTM)21.01%
Revenue growth 3Y1.72%
Revenue growth 5Y15.56%
Sales Q2Q%14.7%
Revenue Next Year15.49%
Revenue Next 2Y14.57%
Revenue Next 3Y13.08%
Revenue Next 5YN/A
EBIT growth 1Y49.24%
EBIT growth 3Y-3.18%
EBIT growth 5Y19.36%
EBIT Next Year40.71%
EBIT Next 3Y23.15%
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%
HOULIHAN LOKEY INC / HLI FAQ
What is the ChartMill fundamental rating of HOULIHAN LOKEY INC (HLI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HLI.
Can you provide the valuation status for HOULIHAN LOKEY INC?
ChartMill assigns a valuation rating of 4 / 10 to HOULIHAN LOKEY INC (HLI). This can be considered as Fairly Valued.
How profitable is HOULIHAN LOKEY INC (HLI) stock?
HOULIHAN LOKEY INC (HLI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for HLI stock?
The Price/Earnings (PE) ratio for HOULIHAN LOKEY INC (HLI) is 23.79 and the Price/Book (PB) ratio is 5.82.
Can you provide the financial health for HLI stock?
The financial health rating of HOULIHAN LOKEY INC (HLI) is 5 / 10.