HOULIHAN LOKEY INC (HLI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HLI - US4415931009 - Common Stock
175.37 USD
+0.43 (+0.25%)
Taking everything into account, HLI scores 6 out of 10 in our fundamental rating. HLI was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make HLI suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year HLI was profitable.
HLI had a positive operating cash flow in the past year.
In the past 5 years HLI has always been profitable.
In the past 5 years HLI always reported a positive cash flow from operatings.
1.2 Ratios
HLI's Return On Assets of 11.24% is amongst the best of the industry. HLI outperforms 92.44% of its industry peers.
HLI's Return On Equity of 18.98% is amongst the best of the industry. HLI outperforms 87.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.66%, HLI belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
HLI had an Average Return On Invested Capital over the past 3 years of 15.77%. This is significantly above the industry average of 6.95%.
The last Return On Invested Capital (18.66%) for HLI is above the 3 year average (15.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 18.98% | ||
| ROIC | 18.66% |
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
Looking at the Profit Margin, with a value of 16.62%, HLI is in line with its industry, outperforming 52.10% of the companies in the same industry.
HLI's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 23.62%, HLI perfoms like the industry average, outperforming 49.16% of the companies in the same industry.
HLI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.62% | ||
| PM (TTM) | 16.62% | ||
| 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
Compared to 1 year ago, HLI has more shares outstanding
Compared to 5 years ago, HLI has more shares outstanding
HLI has a better debt/assets ratio than last year.
2.2 Solvency
HLI has an Altman-Z score of 6.51. This indicates that HLI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.51, HLI belongs to the best of the industry, outperforming 89.50% of the companies in the same industry.
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 | 6.51 |
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 in line with its industry, outperforming 40.34% of the companies in the same industry.
HLI has a Quick 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.
HLI has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
HLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.62%, 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.
Looking at the last year, HLI shows a very strong growth in Revenue. 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
Based on estimates for the next years, HLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.38% on average per year.
HLI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.08% yearly.
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.
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
With a Price/Earnings ratio of 23.14, HLI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of HLI indicates a slightly more expensive valuation: HLI is more expensive than 63.03% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, HLI is valued at the same level.
With a Price/Forward Earnings ratio of 19.56, HLI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as HLI.
The average S&P500 Price/Forward Earnings ratio is at 36.22. HLI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 19.56 |
4.2 Price Multiples
HLI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HLI is cheaper than 75.63% of the companies in the same industry.
HLI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HLI is cheaper than 62.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.68 | ||
| EV/EBITDA | 17.24 |
4.3 Compensation for Growth
HLI's 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.
A more expensive valuation may be justified as HLI's earnings are expected to grow with 16.38% in the coming years.
PEG (NY)0.86
PEG (5Y)1.61
EPS Next 2Y19.49%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
HLI has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
HLI's Dividend Yield is slightly below the industry average, which is at 8.39.
Compared to an average S&P500 Dividend Yield of 2.32, HLI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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
39.81% of the earnings are spent on dividend by HLI. This is a low number and sustainable payout ratio.
The dividend of HLI is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP39.81%
EPS Next 2Y19.49%
EPS Next 3Y16.38%
NYSE:HLI (12/3/2025, 1:25:17 PM)
175.37
+0.43 (+0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners103.13%
Inst Owner Change-1.24%
Ins Owners0.13%
Ins Owner Change-0.42%
Market Cap12.29B
Revenue(TTM)2.57B
Net Income(TTM)426.54M
Analysts70
Price Target218.57 (24.63%)
Short Float %2.4%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.38
Dividend Growth(5Y)14.04%
DP39.81%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.69%
Min EPS beat(2)7.04%
Max EPS beat(2)26.35%
EPS beat(4)4
Avg EPS beat(4)15.08%
Min EPS beat(4)7.04%
Max EPS beat(4)26.35%
EPS beat(8)8
Avg EPS beat(8)9.86%
EPS beat(12)10
Avg EPS beat(12)7.35%
EPS beat(16)14
Avg EPS beat(16)9.82%
Revenue beat(2)2
Avg Revenue beat(2)3.17%
Min Revenue beat(2)0.74%
Max Revenue beat(2)5.6%
Revenue beat(4)4
Avg Revenue beat(4)3.87%
Min Revenue beat(4)0.74%
Max Revenue beat(4)5.6%
Revenue beat(8)7
Avg Revenue beat(8)3.15%
Revenue beat(12)9
Avg Revenue beat(12)1.68%
Revenue beat(16)13
Avg Revenue beat(16)4.38%
PT rev (1m)3.32%
PT rev (3m)5.87%
EPS NQ rev (1m)-2.76%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)1.87%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)-2.1%
Revenue NQ rev (3m)-1.58%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 19.56 | ||
| P/S | 4.79 | ||
| P/FCF | 15.68 | ||
| P/OCF | 15.03 | ||
| P/B | 5.47 | ||
| P/tB | 16.3 | ||
| EV/EBITDA | 17.24 |
EPS(TTM)7.58
EY4.32%
EPS(NY)8.97
Fwd EY5.11%
FCF(TTM)11.18
FCFY6.38%
OCF(TTM)11.66
OCFY6.65%
SpS36.62
BVpS32.07
TBVpS10.76
PEG (NY)0.86
PEG (5Y)1.61
Graham Number73.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 18.98% | ||
| ROCE | 25.39% | ||
| ROIC | 18.66% | ||
| ROICexc | 30.44% | ||
| ROICexgc | N/A | ||
| OM | 23.62% | ||
| PM (TTM) | 16.62% | ||
| GM | N/A | ||
| FCFM | 30.54% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 65.84% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.35% | ||
| Profit Quality | 183.7% | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 6.51 |
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 1Y40.12%
EBIT growth 3Y-3.18%
EBIT growth 5Y19.36%
EBIT Next Year40.71%
EBIT Next 3Y23.18%
EBIT Next 5YN/A
FCF growth 1Y201.72%
FCF growth 3Y3.58%
FCF growth 5Y24.82%
OCF growth 1Y146.55%
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 23.14 and the Price/Book (PB) ratio is 5.47.
Can you provide the financial health for HLI stock?
The financial health rating of HOULIHAN LOKEY INC (HLI) is 6 / 10.