HIREQUEST INC (HQI) Stock Fundamental Analysis
NASDAQ:HQI - Nasdaq - US4335351015 - Common Stock - Currency: USD
HQI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. HQI has an excellent financial health rating, but there are some minor concerns on its profitability. HQI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HQI had positive earnings in the past year.
In the past year HQI had a positive cash flow from operations.
In the past 5 years HQI has always been profitable.
Each year in the past 5 years HQI had a positive operating cash flow.
1.2 Ratios
HQI has a Return On Assets (3.64%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 5.21%, HQI is in line with its industry, outperforming 50.00% of the companies in the same industry.
HQI has a Return On Invested Capital of 11.43%. This is in the better half of the industry: HQI outperforms 71.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HQI is above the industry average of 12.28%.
The 3 year average ROIC (16.15%) for HQI is well above the current ROIC(11.43%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 5.21% | ||
| ROIC | 11.43% |
ROA(3y)7.29%
ROA(5y)9.62%
ROE(3y)12.27%
ROE(5y)15.38%
ROIC(3y)16.15%
ROIC(5y)15.06%
1.3 Margins
With an excellent Profit Margin value of 10.15%, HQI belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
HQI's Profit Margin has declined in the last couple of years.
HQI has a better Operating Margin (29.07%) than 93.90% of its industry peers.
In the last couple of years the Operating Margin of HQI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.07% | ||
| PM (TTM) | 10.15% | ||
| GM | N/A |
OM growth 3Y-3.97%
OM growth 5Y11.43%
PM growth 3Y-41.35%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HQI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HQI has been increased compared to 1 year ago.
HQI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HQI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.47 indicates that HQI is not in any danger for bankruptcy at the moment.
HQI has a better Altman-Z score (4.47) than 75.61% of its industry peers.
HQI has a debt to FCF ratio of 0.38. This is a very positive value and a sign of high solvency as it would only need 0.38 years to pay back of all of its debts.
HQI has a better Debt to FCF ratio (0.38) than 82.93% of its industry peers.
HQI has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.08, HQI is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.24
WACC9.22%
2.3 Liquidity
HQI has a Current Ratio of 2.18. This indicates that HQI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HQI (2.18) is better than 80.49% of its industry peers.
A Quick Ratio of 2.18 indicates that HQI has no problem at all paying its short term obligations.
HQI's Quick ratio of 2.18 is amongst the best of the industry. HQI outperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.90% over the past year.
The earnings per share for HQI have been decreasing by -31.31% on average. This is quite bad
HQI shows a decrease in Revenue. In the last year, the revenue decreased by -7.66%.
The Revenue has been growing by 16.85% on average over the past years. This is quite good.
EPS 1Y (TTM)61.9%
EPS 3Y-31.31%
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-7.66%
Revenue growth 3Y15.37%
Revenue growth 5Y16.85%
Sales Q2Q%-11.25%
3.2 Future
Based on estimates for the next years, HQI will show a small growth in Earnings Per Share. The EPS will grow by 3.67% on average per year.
HQI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.03% yearly.
EPS Next Y-28.58%
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
EPS Next 5Y3.67%
Revenue Next Year-13.25%
Revenue Next 2Y-4.57%
Revenue Next 3Y0.08%
Revenue Next 5Y2.03%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.82, the valuation of HQI can be described as correct.
Based on the Price/Earnings ratio, HQI is valued a bit cheaper than 74.39% of the companies in the same industry.
HQI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.47, HQI is valued correctly.
HQI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HQI to the average of the S&P500 Index (35.33), we can say HQI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
HQI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HQI is cheaper than 71.95% of the companies in the same industry.
85.37% of the companies in the same industry are more expensive than HQI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 10.95 |
4.3 Compensation for Growth
The decent profitability rating of HQI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
5. Dividend
5.1 Amount
HQI has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.06, HQI pays a better dividend. On top of this HQI pays more dividend than 86.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HQI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 Years4
5.3 Sustainability
98.45% of the earnings are spent on dividend by HQI. This is not a sustainable payout ratio.
DP98.45%
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
9.4
-0.61 (-6.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners12.33%
Inst Owner Change0%
Ins Owners43.66%
Ins Owner Change-0.53%
Market Cap131.60M
Analysts83.33
Price Target14.28 (51.91%)
Short Float %4.05%
Short Ratio15.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP98.45%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-20.51%
Min EPS beat(2)-26.66%
Max EPS beat(2)-14.37%
EPS beat(4)2
Avg EPS beat(4)11.22%
Min EPS beat(4)-26.66%
Max EPS beat(4)67.08%
EPS beat(8)4
Avg EPS beat(8)15.97%
EPS beat(12)5
Avg EPS beat(12)9.28%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-10.9%
Min Revenue beat(2)-13.98%
Max Revenue beat(2)-7.82%
Revenue beat(4)2
Avg Revenue beat(4)-4.13%
Min Revenue beat(4)-13.98%
Max Revenue beat(4)4.16%
Revenue beat(8)4
Avg Revenue beat(8)-2.1%
Revenue beat(12)6
Avg Revenue beat(12)-5.71%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-12.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)-11.61%
EPS NY rev (3m)-36.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.82 | ||
| Fwd PE | 16.47 | ||
| P/S | 3.91 | ||
| P/FCF | 9.12 | ||
| P/OCF | 8.86 | ||
| P/B | 2.01 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 10.95 |
EPS(TTM)0.68
EY7.23%
EPS(NY)0.57
Fwd EY6.07%
FCF(TTM)1.03
FCFY10.96%
OCF(TTM)1.06
OCFY11.29%
SpS2.4
BVpS4.68
TBVpS2.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 5.21% | ||
| ROCE | 13.88% | ||
| ROIC | 11.43% | ||
| ROICexc | 11.75% | ||
| ROICexgc | 19.4% | ||
| OM | 29.07% | ||
| PM (TTM) | 10.15% | ||
| GM | N/A | ||
| FCFM | 42.88% |
ROA(3y)7.29%
ROA(5y)9.62%
ROE(3y)12.27%
ROE(5y)15.38%
ROIC(3y)16.15%
ROIC(5y)15.06%
ROICexc(3y)16.72%
ROICexc(5y)17.02%
ROICexgc(3y)38.78%
ROICexgc(5y)32.73%
ROCE(3y)18.21%
ROCE(5y)16.98%
ROICexcg growth 3Y-0.19%
ROICexcg growth 5Y25.64%
ROICexc growth 3Y3.13%
ROICexc growth 5Y11.87%
OM growth 3Y-3.97%
OM growth 5Y11.43%
PM growth 3Y-41.35%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.38 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 15.29% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 11.4 | ||
| Cash Conversion | 117.85% | ||
| Profit Quality | 422.37% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 4.47 |
F-Score6
WACC9.22%
ROIC/WACC1.24
Cap/Depr(3y)36.09%
Cap/Depr(5y)317.81%
Cap/Sales(3y)2.51%
Cap/Sales(5y)5.81%
Profit Quality(3y)200.92%
Profit Quality(5y)180.57%
High Growth Momentum
Growth
EPS 1Y (TTM)61.9%
EPS 3Y-31.31%
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y-28.58%
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
EPS Next 5Y3.67%
Revenue 1Y (TTM)-7.66%
Revenue growth 3Y15.37%
Revenue growth 5Y16.85%
Sales Q2Q%-11.25%
Revenue Next Year-13.25%
Revenue Next 2Y-4.57%
Revenue Next 3Y0.08%
Revenue Next 5Y2.03%
EBIT growth 1Y3.72%
EBIT growth 3Y10.79%
EBIT growth 5Y30.2%
EBIT Next Year55.83%
EBIT Next 3Y28.3%
EBIT Next 5Y18.75%
FCF growth 1Y38.33%
FCF growth 3Y-9.2%
FCF growth 5Y20.97%
OCF growth 1Y25.61%
OCF growth 3Y-11.52%
OCF growth 5Y19.4%