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.
Each year in the past 5 years HQI has been profitable.
Each year in the past 5 years HQI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HQI (3.64%) is comparable to the rest of the industry.
HQI has a Return On Equity (5.21%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 11.43%, HQI is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HQI is above the industry average of 12.61%.
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
The Profit Margin of HQI (10.15%) is better than 81.71% of its industry peers.
In the last couple of years the Profit Margin of HQI has declined.
HQI has a Operating Margin of 29.07%. This is amongst the best in the industry. HQI outperforms 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HQI is creating value.
HQI has more shares outstanding than it did 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
HQI has an Altman-Z score of 4.50. This indicates that HQI is financially healthy and has little risk of bankruptcy at the moment.
HQI has a Altman-Z score of 4.50. This is in the better half of the industry: HQI outperforms 76.83% of its industry peers.
The Debt to FCF ratio of HQI is 0.38, which is an excellent value as it means it would take HQI, only 0.38 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HQI (0.38) is better than 82.93% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that HQI is not too dependend on debt financing.
HQI has a Debt to Equity ratio of 0.08. This is in the better half of the industry: HQI outperforms 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 4.5 |
ROIC/WACC1.28
WACC8.92%
2.3 Liquidity
A Current Ratio of 2.18 indicates that HQI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.18, HQI belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
HQI has a Quick Ratio of 2.18. This indicates that HQI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.18, HQI belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
HQI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.90%, which is quite impressive.
HQI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.31% yearly.
The Revenue has decreased by -7.66% in the past year.
Measured over the past years, HQI shows a quite strong growth in Revenue. The Revenue has been growing by 16.85% on average per year.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.04% on average per year.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y-19.2%
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
EPS Next 5Y8.04%
Revenue Next Year-13.25%
Revenue Next 2Y-4.57%
Revenue Next 3Y0.08%
Revenue Next 5Y3.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.46, HQI is valued correctly.
HQI's Price/Earnings ratio is a bit cheaper when compared to the industry. HQI is cheaper than 69.51% of the companies in the same industry.
HQI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.23, HQI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as HQI.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, HQI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
HQI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HQI is cheaper than 70.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HQI is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.54 | ||
| EV/EBITDA | 11.04 |
4.3 Compensation for Growth
HQI has a very decent profitability rating, which 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 2.36%.
In the last 3 months the price of HQI has falen by -29.61%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.09, HQI pays a better dividend. On top of this HQI pays more dividend than 86.59% of the companies listed in the same industry.
HQI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
HQI pays out 98.45% of its income as dividend. This is not a sustainable payout ratio.
DP98.45%
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
9.83
-0.26 (-2.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners12.75%
Inst Owner Change-5.01%
Ins Owners43.5%
Ins Owner Change-0.83%
Market Cap137.62M
Analysts83.33
Price Target16.32 (66.02%)
Short Float %3.4%
Short Ratio11.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)-15.79%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-29.41%
EPS NY rev (1m)-20%
EPS NY rev (3m)-28.21%
Revenue NQ rev (1m)-14.29%
Revenue NQ rev (3m)-19.6%
Revenue NY rev (1m)-11%
Revenue NY rev (3m)-19.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 17.23 | ||
| P/S | 4.09 | ||
| P/FCF | 9.54 | ||
| P/OCF | 9.26 | ||
| P/B | 2.1 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 11.04 |
EPS(TTM)0.68
EY6.92%
EPS(NY)0.57
Fwd EY5.81%
FCF(TTM)1.03
FCFY10.48%
OCF(TTM)1.06
OCFY10.8%
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 | 4.5 |
F-Score6
WACC8.92%
ROIC/WACC1.28
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-19.2%
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
EPS Next 5Y8.04%
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 5Y3.87%
EBIT growth 1Y3.72%
EBIT growth 3Y10.79%
EBIT growth 5Y30.2%
EBIT Next Year55.83%
EBIT Next 3Y28.3%
EBIT Next 5Y22.66%
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%