HIREQUEST INC (HQI)
US4335351015 - Common Stock
We assign a fundamental rating of 5 out of 10 to HQI. HQI was compared to 81 industry peers in the Professional Services industry. Both the profitability and the financial health of HQI get a neutral evaluation. Nothing too spectacular is happening here. HQI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HQI was profitable.
HQI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HQI reported negative net income in multiple years.
Of the past 5 years HQI 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.40%, HQI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
With a decent Return On Equity value of 14.04%, HQI is doing good in the industry, outperforming 71.25% of the companies in the same industry.
HQI's Return On Invested Capital of 14.39% is fine compared to the rest of the industry. HQI outperforms 78.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HQI is above the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.4% | ||
| ROE | 14.04% | ||
| ROIC | 14.39% |
ROA(3y)12.76%
ROA(5y)8.36%
ROE(3y)20.49%
ROE(5y)13.14%
ROIC(3y)16.43%
ROIC(5y)12.35%
1.3 Margins
HQI's Profit Margin of 27.39% is amongst the best of the industry. HQI outperforms 95.00% of its industry peers.
In the last couple of years the Profit Margin of HQI has grown nicely.
HQI's Operating Margin of 33.54% is amongst the best of the industry. HQI outperforms 96.25% of its industry peers.
In the last couple of years the Operating Margin of HQI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.54% | ||
| PM (TTM) | 27.39% | ||
| GM | N/A |
OM growth 3Y43.59%
OM growth 5Y68.88%
PM growth 3YN/A
PM growth 5Y88.03%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HQI is creating value.
There is no outstanding debt for HQI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.75 indicates that HQI is not in any danger for bankruptcy at the moment.
HQI has a Altman-Z score of 3.75. This is in the better half of the industry: HQI outperforms 71.25% of its industry peers.
HQI has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as HQI would need 2.31 years to pay back of all of its debts.
HQI has a Debt to FCF ratio of 2.31. This is in the better half of the industry: HQI outperforms 68.75% of its industry peers.
HQI has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
HQI has a better Debt to Equity ratio (0.00) than 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.62
WACC8.86%
2.3 Liquidity
HQI has a Current Ratio of 1.51. This is a normal value and indicates that HQI is financially healthy and should not expect problems in meeting its short term obligations.
HQI has a Current ratio (1.51) which is in line with its industry peers.
A Quick Ratio of 1.51 indicates that HQI should not have too much problems paying its short term obligations.
HQI has a Quick ratio (1.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for HQI have decreased strongly by -18.07% in the last year.
HQI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.98% yearly.
The Revenue has been growing slightly by 4.33% in the past year.
HQI shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -20.60% yearly.
EPS 1Y (TTM)-18.07%
EPS 3YN/A
EPS 5Y22.98%
EPS growth Q2Q-56.67%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y24.91%
Revenue growth 5Y-20.6%
Revenue growth Q2Q-0.95%
3.2 Future
HQI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
HQI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.71% yearly.
EPS Next Y-54.99%
EPS Next 2Y-13.6%
EPS Next 3Y-0.4%
EPS Next 5Y6.36%
Revenue Next Year6.76%
Revenue Next 2Y4.37%
Revenue Next 3Y4.36%
Revenue Next 5Y4.71%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.35, the valuation of HQI can be described as rather expensive.
HQI's Price/Earnings ratio is a bit cheaper when compared to the industry. HQI is cheaper than 66.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, HQI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.17, the valuation of HQI can be described as rather expensive.
HQI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.88. HQI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HQI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HQI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.51 | ||
| EV/EBITDA | 14.39 |
4.3 Compensation for Growth
The decent profitability rating of HQI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-13.6%
EPS Next 3Y-0.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, HQI has a reasonable but not impressive dividend return.
HQI's Dividend Yield is rather good when compared to the industry average which is at 2.08. HQI pays more dividend than 86.25% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, HQI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
HQI has been paying a dividend for over 5 years, so it has already some track record.
HQI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
HQI pays out 37.70% of its income as dividend. This is a sustainable payout ratio.
DP37.7%
EPS Next 2Y-13.6%
EPS Next 3Y-0.4%
HIREQUEST INC
NASDAQ:HQI (5/3/2024, 7:00:01 PM)
After market: 12.48 0 (0%)12.48
-0.11 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
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Market Cap174.10M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 18.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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SpS
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PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.4% | ||
| ROE | 14.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 33.54% | ||
| PM (TTM) | 27.39% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.07%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-54.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.33%
Revenue growth 3Y24.91%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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