HireRight Holdings Corporation (HRT) Stock Fundamental Analysis

NYSE:HRT • US4335371070

14.36 USD
-0.02 (-0.14%)
At close: Jun 27, 2024
14.36 USD
0 (0%)
After Hours: 6/27/2024, 8:21:54 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, HRT scores 4 out of 10 in our fundamental rating. HRT was compared to 88 industry peers in the Professional Services industry. HRT has a medium profitability rating, but doesn't score so well on its financial health evaluation. HRT is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year HRT was profitable.
  • In the past year HRT had a positive cash flow from operations.
  • In the past 5 years HRT reported 4 times negative net income.
  • In the past 5 years HRT always reported a positive cash flow from operatings.
HRT Yearly Net Income VS EBIT VS OCF VS FCFHRT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M

1.2 Ratios

  • HRT has a worse Return On Assets (-0.46%) than 64.63% of its industry peers.
  • HRT has a Return On Equity of -1.55%. This is in the lower half of the industry: HRT underperforms 67.07% of its industry peers.
  • The Return On Invested Capital of HRT (4.90%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for HRT is significantly below the industry average of 12.55%.
  • The last Return On Invested Capital (4.90%) for HRT is above the 3 year average (4.42%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.46%
ROE -1.55%
ROIC 4.9%
ROA(3y)2.29%
ROA(5y)-0.83%
ROE(3y)6.03%
ROE(5y)-7.45%
ROIC(3y)4.42%
ROIC(5y)3.25%
HRT Yearly ROA, ROE, ROICHRT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 20 -20

1.3 Margins

  • HRT has a Operating Margin of 11.85%. This is amongst the best in the industry. HRT outperforms 82.93% of its industry peers.
  • HRT's Operating Margin has improved in the last couple of years.
  • The Gross Margin of HRT (48.75%) is comparable to the rest of the industry.
  • HRT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.85%
PM (TTM) N/A
GM 48.75%
OM growth 3Y70.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5YN/A
HRT Yearly Profit, Operating, Gross MarginsHRT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRT is destroying value.
  • Compared to 1 year ago, HRT has less shares outstanding
  • The debt/assets ratio for HRT is higher compared to a year ago.
HRT Yearly Shares OutstandingHRT Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M
HRT Yearly Total Debt VS Total AssetsHRT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

  • HRT has an Altman-Z score of 1.08. This is a bad value and indicates that HRT is not financially healthy and even has some risk of bankruptcy.
  • HRT has a Altman-Z score of 1.08. This is in the lower half of the industry: HRT underperforms 71.95% of its industry peers.
  • The Debt to FCF ratio of HRT is 10.42, which is on the high side as it means it would take HRT, 10.42 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of HRT (10.42) is worse than 63.41% of its industry peers.
  • A Debt/Equity ratio of 1.61 is on the high side and indicates that HRT has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.61, HRT is doing worse than 85.37% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.61
Debt/FCF 10.42
Altman-Z 1.08
ROIC/WACC0.54
WACC9.02%
HRT Yearly LT Debt VS Equity VS FCFHRT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.3 Liquidity

  • HRT has a Current Ratio of 1.76. This is a normal value and indicates that HRT is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.76, HRT is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
  • HRT has a Quick Ratio of 1.76. This is a normal value and indicates that HRT is financially healthy and should not expect problems in meeting its short term obligations.
  • HRT has a better Quick ratio (1.76) than 63.41% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.76
HRT Yearly Current Assets VS Current LiabilitesHRT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • HRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.25%.
  • Looking at the last year, HRT shows a decrease in Revenue. The Revenue has decreased by -8.14% in the last year.
  • HRT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.15% yearly.
EPS 1Y (TTM)-53.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y10.15%
Revenue growth 5YN/A
Sales Q2Q%-1.28%

3.2 Future

  • HRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.89% yearly.
  • The Revenue is expected to grow by 6.63% on average over the next years.
EPS Next Y22.84%
EPS Next 2Y27.37%
EPS Next 3Y23.89%
EPS Next 5YN/A
Revenue Next Year4.35%
Revenue Next 2Y7.18%
Revenue Next 3Y6.63%
Revenue Next 5YN/A

3.3 Evolution

  • 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.
HRT Yearly Revenue VS EstimatesHRT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
HRT Yearly EPS VS EstimatesHRT Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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Find the best growth stocksShow best growing peers

8

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.49, HRT is valued correctly.
  • 82.93% of the companies in the same industry are more expensive than HRT, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.99, HRT is valued rather cheaply.
  • The Price/Forward Earnings ratio is 7.97, which indicates a rather cheap valuation of HRT.
  • HRT's Price/Forward Earnings ratio is rather cheap when compared to the industry. HRT is cheaper than 93.90% of the companies in the same industry.
  • HRT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 12.49
Fwd PE 7.97
HRT Price Earnings VS Forward Price EarningsHRT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 76.83% of the companies in the same industry are more expensive than HRT, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of HRT indicates a somewhat cheap valuation: HRT is cheaper than 79.27% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.78
EV/EBITDA 9.64
HRT Per share dataHRT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • HRT's earnings are expected to grow with 23.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y27.37%
EPS Next 3Y23.89%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • HRT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

HireRight Holdings Corporation

NYSE:HRT (6/27/2024, 8:21:54 PM)

After market: 14.36 0 (0%)

14.36

-0.02 (-0.14%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)05-07
Earnings (Next)08-06
Inst Owners1.42%
Inst Owner Change0%
Ins Owners11.66%
Ins Owner Change0%
Market Cap967.15M
Revenue(TTM)719.65M
Net Income(TTM)-6.98M
Analysts46.67
Price Target14.37 (0.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.84%
Min EPS beat(2)5.74%
Max EPS beat(2)11.94%
EPS beat(4)3
Avg EPS beat(4)5.01%
Min EPS beat(4)-3.39%
Max EPS beat(4)11.94%
EPS beat(8)6
Avg EPS beat(8)37.54%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.25%
Min Revenue beat(2)-3.53%
Max Revenue beat(2)-2.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.53%
Max Revenue beat(4)0.22%
Revenue beat(8)4
Avg Revenue beat(8)0.51%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.62%
PT rev (3m)5.62%
EPS NQ rev (1m)-10.53%
EPS NQ rev (3m)-10.53%
EPS NY rev (1m)-7.53%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)-0.21%
Valuation
Industry RankSector Rank
PE 12.49
Fwd PE 7.97
P/S 1.34
P/FCF 13.78
P/OCF 11.25
P/B 2.15
P/tB N/A
EV/EBITDA 9.64
EPS(TTM)1.15
EY8.01%
EPS(NY)1.8
Fwd EY12.54%
FCF(TTM)1.04
FCFY7.26%
OCF(TTM)1.28
OCFY8.89%
SpS10.69
BVpS6.68
TBVpS-10.44
PEG (NY)0.55
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.46%
ROE -1.55%
ROCE 6.21%
ROIC 4.9%
ROICexc 5.19%
ROICexgc 46.9%
OM 11.85%
PM (TTM) N/A
GM 48.75%
FCFM 9.75%
ROA(3y)2.29%
ROA(5y)-0.83%
ROE(3y)6.03%
ROE(5y)-7.45%
ROIC(3y)4.42%
ROIC(5y)3.25%
ROICexc(3y)4.88%
ROICexc(5y)3.53%
ROICexgc(3y)63.88%
ROICexgc(5y)52.87%
ROCE(3y)5.59%
ROCE(5y)4.11%
ROICexgc growth 3Y28.97%
ROICexgc growth 5YN/A
ROICexc growth 3Y88.84%
ROICexc growth 5YN/A
OM growth 3Y70.3%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.2%
GM growth 5YN/A
F-Score4
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 1.61
Debt/FCF 10.42
Debt/EBITDA 4.3
Cap/Depr 19.08%
Cap/Sales 2.2%
Interest Coverage 1.27
Cash Conversion 51.13%
Profit Quality N/A
Current Ratio 1.76
Quick Ratio 1.76
Altman-Z 1.08
F-Score4
WACC9.02%
ROIC/WACC0.54
Cap/Depr(3y)19.13%
Cap/Depr(5y)18.31%
Cap/Sales(3y)1.98%
Cap/Sales(5y)2.08%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%22.22%
EPS Next Y22.84%
EPS Next 2Y27.37%
EPS Next 3Y23.89%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y10.15%
Revenue growth 5YN/A
Sales Q2Q%-1.28%
Revenue Next Year4.35%
Revenue Next 2Y7.18%
Revenue Next 3Y6.63%
Revenue Next 5YN/A
EBIT growth 1Y-1.86%
EBIT growth 3Y87.58%
EBIT growth 5YN/A
EBIT Next Year195.39%
EBIT Next 3Y58.42%
EBIT Next 5YN/A
FCF growth 1Y164.8%
FCF growth 3Y160.88%
FCF growth 5YN/A
OCF growth 1Y103.29%
OCF growth 3Y76.53%
OCF growth 5YN/A

HireRight Holdings Corporation / HRT FAQ

What is the fundamental rating for HRT stock?

ChartMill assigns a fundamental rating of 4 / 10 to HRT.


Can you provide the valuation status for HireRight Holdings Corporation?

ChartMill assigns a valuation rating of 8 / 10 to HireRight Holdings Corporation (HRT). This can be considered as Undervalued.


How profitable is HireRight Holdings Corporation (HRT) stock?

HireRight Holdings Corporation (HRT) has a profitability rating of 4 / 10.


What is the expected EPS growth for HireRight Holdings Corporation (HRT) stock?

The Earnings per Share (EPS) of HireRight Holdings Corporation (HRT) is expected to grow by 22.84% in the next year.