HIREQUEST INC (HQI) Stock Fundamental Analysis
NASDAQ:HQI - Nasdaq - US4335351015 - Common Stock - Currency: USD
Overall HQI gets a fundamental rating of 6 out of 10. We evaluated HQI against 80 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
In the past year HQI was profitable.
In the past year HQI had a positive cash flow from operations.
Each year in the past 5 years HQI has been profitable.
In the past 5 years HQI always reported a positive cash flow from operatings.
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 47.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.43%, HQI is in the better half of the industry, outperforming 71.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HQI is above the industry average of 12.73%.
The last Return On Invested Capital (11.43%) for HQI is well below the 3 year average (16.15%), which needs to be investigated, but indicates that HQI had better years and this may not be a problem.
| 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
HQI's Profit Margin of 10.15% is amongst the best of the industry. HQI outperforms 82.50% of its industry peers.
In the last couple of years the Profit Margin of HQI has declined.
Looking at the Operating Margin, with a value of 29.07%, HQI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
HQI's Operating Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, HQI has more shares outstanding
HQI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HQI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.47 indicates that HQI is not in any danger for bankruptcy at the moment.
HQI's Altman-Z score of 4.47 is fine compared to the rest of the industry. HQI outperforms 76.25% 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.
HQI has a Debt to FCF ratio of 0.38. This is amongst the best in the industry. HQI outperforms 82.50% 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.
The Debt to Equity ratio of HQI (0.08) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.38 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.29
WACC8.85%
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.
With an excellent Current ratio value of 2.18, HQI belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 2.18 indicates that HQI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.18, HQI belongs to the best of the industry, outperforming 81.25% 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 45.24%, which is quite impressive.
Measured over the past years, HQI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.31% on average per year.
Looking at the last year, HQI shows a decrease in Revenue. The Revenue has decreased by -8.67% in the last 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)45.24%
EPS 3Y-31.31%
EPS 5YN/A
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-8.67%
Revenue growth 3Y15.37%
Revenue growth 5Y16.85%
Sales Q2Q%-12%
3.2 Future
HQI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.67% yearly.
Based on estimates for the next years, HQI will show a small growth in Revenue. The Revenue will grow by 2.03% on average per year.
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
With a Price/Earnings ratio of 15.87, HQI is valued correctly.
HQI's Price/Earnings ratio is a bit cheaper when compared to the industry. HQI is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.11, HQI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.96, the valuation of HQI can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as HQI.
HQI is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HQI is valued a bit cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HQI is valued cheaply inside the industry as 83.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.39 | ||
| EV/EBITDA | 10.92 |
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
With a Yearly Dividend Yield of 2.43%, HQI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.28, HQI pays a better dividend. On top of this HQI pays more dividend than 88.75% of the companies listed in the same industry.
HQI's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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%
NASDAQ:HQI (8/13/2025, 8:13:41 PM)
9.68
-0.3 (-3.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners11.97%
Inst Owner Change-1.42%
Ins Owners43.84%
Ins Owner Change0.35%
Market Cap135.52M
Analysts83.33
Price Target14.28 (47.52%)
Short Float %3.91%
Short Ratio15.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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)0%
EPS NY rev (3m)-29.29%
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 | 15.87 | ||
| Fwd PE | 16.96 | ||
| P/S | 4.03 | ||
| P/FCF | 9.39 | ||
| P/OCF | 9.12 | ||
| P/B | 2.07 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)0.61
EY6.3%
EPS(NY)0.57
Fwd EY5.9%
FCF(TTM)1.03
FCFY10.65%
OCF(TTM)1.06
OCFY10.97%
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
WACC8.85%
ROIC/WACC1.29
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)45.24%
EPS 3Y-31.31%
EPS 5YN/A
EPS Q2Q%-46.67%
EPS Next Y-28.58%
EPS Next 2Y-9.71%
EPS Next 3Y0.33%
EPS Next 5Y3.67%
Revenue 1Y (TTM)-8.67%
Revenue growth 3Y15.37%
Revenue growth 5Y16.85%
Sales Q2Q%-12%
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%