HOULIHAN LOKEY INC (HLI) Stock Fundamental Analysis
NYSE:HLI - New York Stock Exchange, Inc. - US4415931009 - Common Stock - Currency: USD
Overall HLI gets a fundamental rating of 6 out of 10. We evaluated HLI against 236 industry peers in the Capital Markets industry. HLI has an excellent profitability rating, but there are some minor concerns on its financial health. HLI shows excellent growth, but is valued quite expensive already. 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.
In the past year HLI had a positive cash flow from operations.
HLI had positive earnings in each of the past 5 years.
HLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.46%, HLI belongs to the best of the industry, outperforming 88.56% of the companies in the same industry.
The Return On Equity of HLI (18.38%) is better than 85.59% of its industry peers.
HLI's Return On Invested Capital of 17.68% is amongst the best of the industry. HLI outperforms 92.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLI is significantly above the industry average of 7.88%.
The last Return On Invested Capital (17.68%) for HLI is above the 3 year average (15.77%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 18.38% | ||
| ROIC | 17.68% |
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 16.73%. This is comparable to the rest of the industry: HLI outperforms 55.93% of its industry peers.
HLI's Profit Margin has been stable in the last couple of years.
HLI has a Operating Margin of 22.69%. This is comparable to the rest of the industry: HLI outperforms 44.49% of its industry peers.
HLI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.69% | ||
| PM (TTM) | 16.73% | ||
| 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
HLI has more shares outstanding than it did 5 years ago.
HLI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.43 indicates that HLI is not in any danger for bankruptcy at the moment.
HLI has a better Altman-Z score (6.43) than 86.86% of its industry peers.
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 92.80% 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 85.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.43 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HLI has a Current Ratio of 0.88. This is a bad value and indicates that HLI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HLI (0.88) is worse than 61.02% 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: 60.59% 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
The Earnings Per Share has grown by an impressive 49.38% over the past year.
The Earnings Per Share has been growing by 14.36% on average over the past years. This is quite good.
Looking at the last year, HLI shows a very strong growth in Revenue. The Revenue has grown by 24.81%.
The Revenue has been growing by 15.56% on average over the past years. This is quite good.
EPS 1Y (TTM)49.38%
EPS 3Y-4.01%
EPS 5Y14.36%
EPS Q2Q%75.41%
Revenue 1Y (TTM)24.81%
Revenue growth 3Y1.72%
Revenue growth 5Y15.56%
Sales Q2Q%17.86%
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 14.69% 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 12.40% on average per year.
EPS Next Y13.75%
EPS Next 2Y14.79%
EPS Next 3Y14.69%
EPS Next 5YN/A
Revenue Next Year11.91%
Revenue Next 2Y13.09%
Revenue Next 3Y12.4%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.02, which means the current valuation is very expensive for HLI.
Compared to the rest of the industry, the Price/Earnings ratio of HLI indicates a slightly more expensive valuation: HLI is more expensive than 65.68% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.91. HLI is around the same levels.
HLI is valuated rather expensively with a Price/Forward Earnings ratio of 23.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLI indicates a slightly more expensive valuation: HLI is more expensive than 60.59% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.11. HLI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 23.51 |
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 71.19% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLI indicates a somewhat cheap valuation: HLI is cheaper than 64.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.78 | ||
| EV/EBITDA | 21.3 |
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 14.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)1.88
EPS Next 2Y14.79%
EPS Next 3Y14.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, HLI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.23, HLI is paying slightly less dividend.
With a Dividend Yield of 1.24, HLI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
On average, the dividend of HLI grows each year by 14.04%, which is quite nice.
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)14.04%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
41.33% of the earnings are spent on dividend by HLI. 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.
DP41.33%
EPS Next 2Y14.79%
EPS Next 3Y14.69%
NYSE:HLI (7/30/2025, 12:30:06 PM)
194.523
+2.81 (+1.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.26%
Inst Owner Change-1.02%
Ins Owners0.13%
Ins Owner Change2.35%
Market Cap13.58B
Analysts69.23
Price Target204.85 (5.31%)
Short Float %2.1%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend2.38
Dividend Growth(5Y)14.04%
DP41.33%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.46%
Min EPS beat(2)7.29%
Max EPS beat(2)19.63%
EPS beat(4)4
Avg EPS beat(4)9.34%
Min EPS beat(4)0.24%
Max EPS beat(4)19.63%
EPS beat(8)7
Avg EPS beat(8)4.93%
EPS beat(12)10
Avg EPS beat(12)7.08%
EPS beat(16)14
Avg EPS beat(16)10.96%
Revenue beat(2)2
Avg Revenue beat(2)4.58%
Min Revenue beat(2)4.31%
Max Revenue beat(2)4.85%
Revenue beat(4)3
Avg Revenue beat(4)3.74%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)5.83%
Revenue beat(8)6
Avg Revenue beat(8)2.04%
Revenue beat(12)9
Avg Revenue beat(12)2.53%
Revenue beat(16)12
Avg Revenue beat(16)6.35%
PT rev (1m)11.37%
PT rev (3m)14.98%
EPS NQ rev (1m)3.54%
EPS NQ rev (3m)14.38%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-2.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.02 | ||
| Fwd PE | 23.51 | ||
| P/S | 5.68 | ||
| P/FCF | 16.78 | ||
| P/OCF | 16 | ||
| P/B | 6.24 | ||
| P/tB | 20.03 | ||
| EV/EBITDA | 21.3 |
EPS(TTM)7.2
EY3.7%
EPS(NY)8.27
Fwd EY4.25%
FCF(TTM)11.59
FCFY5.96%
OCF(TTM)12.16
OCFY6.25%
SpS34.24
BVpS31.16
TBVpS9.71
PEG (NY)1.96
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 18.38% | ||
| ROCE | 24.06% | ||
| ROIC | 17.68% | ||
| ROICexc | 31.08% | ||
| ROICexgc | N/A | ||
| OM | 22.69% | ||
| PM (TTM) | 16.73% | ||
| GM | N/A | ||
| FCFM | 33.85% |
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-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 96.19% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 397.71 | ||
| Cash Conversion | 145.47% | ||
| Profit Quality | 202.37% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.43 |
F-Score8
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 Y13.75%
EPS Next 2Y14.79%
EPS Next 3Y14.69%
EPS Next 5YN/A
Revenue 1Y (TTM)24.81%
Revenue growth 3Y1.72%
Revenue growth 5Y15.56%
Sales Q2Q%17.86%
Revenue Next Year11.91%
Revenue Next 2Y13.09%
Revenue Next 3Y12.4%
Revenue Next 5YN/A
EBIT growth 1Y49.4%
EBIT growth 3Y-3.18%
EBIT growth 5Y19.36%
EBIT Next Year24.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y209.07%
FCF growth 3Y3.58%
FCF growth 5Y24.82%
OCF growth 1Y158.36%
OCF growth 3Y4.83%
OCF growth 5Y24.15%