HireRight Holdings Corporation (HRT) Stock Fundamental Analysis
USA - NYSE:HRT - US4335371070 - Common Stock
14.36 USD
-0.02 (-0.14%)
14.36 USD
0 (0%)
Taking everything into account, HRT scores 4 out of 10 in our fundamental rating. HRT was compared to 87 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.
1. Profitability
1.1 Basic Checks
In the past year HRT was profitable.
HRT had a positive operating cash flow in the past year.
In the past 5 years HRT reported 4 times negative net income.
Each year in the past 5 years HRT had a positive operating cash flow.
1.2 Ratios
HRT's Return On Assets of -0.46% is on the low side compared to the rest of the industry. HRT is outperformed by 64.63% of its industry peers.
HRT's Return On Equity of -1.55% is on the low side compared to the rest of the industry. HRT is outperformed by 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 22.56%.
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 Rank | Sector 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%
1.3 Margins
With an excellent Operating Margin value of 11.85%, HRT belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
HRT's Operating Margin has improved in the last couple of years.
HRT has a Gross Margin (48.75%) which is comparable to the rest of the industry.
HRT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRT is destroying value.
HRT has less shares outstanding than it did 1 year ago.
The debt/assets ratio for HRT is higher compared to a year ago.
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.
With a Altman-Z score value of 1.08, HRT is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
HRT has a debt to FCF ratio of 10.42. This is a negative value and a sign of low solvency as HRT would need 10.42 years to pay back of all of its debts.
HRT has a worse Debt to FCF ratio (10.42) 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.
HRT has a worse Debt to Equity ratio (1.61) than 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.61 | ||
| Debt/FCF | 10.42 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.54
WACC9.02%
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.
HRT has a better Current ratio (1.76) than 63.41% of its industry peers.
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.
With a decent Quick ratio value of 1.76, HRT is doing good in the industry, outperforming 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.76 |
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%.
HRT shows a decrease in Revenue. In the last year, the revenue decreased by -8.14%.
Measured over the past years, HRT shows a quite strong growth in Revenue. The Revenue has been growing by 10.15% on average per year.
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
Based on estimates for the next years, HRT will show a very strong growth in Earnings Per Share. The EPS will grow by 23.89% on average per year.
HRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.63% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.49, HRT is valued correctly.
Based on the Price/Earnings ratio, HRT is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.56. HRT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.97, the valuation of HRT can be described as very cheap.
Based on the Price/Forward Earnings ratio, HRT is valued cheaply inside the industry as 93.90% of the companies are valued more expensively.
HRT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRT is valued a bit cheaper than the industry average as 76.83% of the companies are valued more expensively.
79.27% of the companies in the same industry are more expensive than HRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.78 | ||
| EV/EBITDA | 9.64 |
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%
5. Dividend
5.1 Amount
No dividends for HRT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
14.36
-0.02 (-0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
What is the valuation status for HRT stock?
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.
How financially healthy is HireRight Holdings Corporation?
The financial health rating of HireRight Holdings Corporation (HRT) is 2 / 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.