HireRight Holdings Corporation (HRT) Fundamental Analysis & Valuation

NYSE:HRT • US4335371070

Current stock price

14.36 USD
-0.02 (-0.14%)
At close:
14.36 USD
0 (0%)
After Hours:

This HRT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. HRT Profitability Analysis

1.1 Basic Checks

  • In the past year HRT was profitable.
  • HRT had a positive operating cash flow in the past year.
  • HRT had negative earnings in 4 of the past 5 years.
  • 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

  • Looking at the Return On Assets, with a value of -0.46%, HRT is doing worse than 64.63% of the companies in the same industry.
  • HRT has a worse Return On Equity (-1.55%) than 67.07% of its industry peers.
  • HRT's Return On Invested Capital of 4.90% is in line compared to the rest of the industry. HRT outperforms 45.12% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for HRT is significantly below the industry average of 13.12%.
  • The 3 year average ROIC (4.42%) for HRT is below the current ROIC(4.90%), indicating increased profibility in the last year.
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's Operating Margin of 11.85% is amongst the best of the industry. HRT outperforms 82.93% of its industry peers.
  • HRT's Operating Margin has improved in the last couple of years.
  • HRT has a Gross Margin (48.75%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of HRT has grown nicely.
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. HRT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRT is destroying value.
  • Compared to 1 year ago, HRT has less shares outstanding
  • HRT has a worse debt/assets ratio than last year.
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.
  • HRT has a Debt/Equity ratio of 1.61. This is a high value indicating a heavy dependency on external financing.
  • HRT's Debt to Equity ratio of 1.61 is on the low side compared to the rest of the industry. HRT is outperformed by 85.37% of its industry peers.
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.
  • With a decent Current ratio value of 1.76, HRT is doing good in the industry, outperforming 63.41% of the companies in the same industry.
  • A Quick Ratio of 1.76 indicates that HRT should not have too much problems paying its short term obligations.
  • HRT has a Quick ratio of 1.76. This is in the better half of the industry: HRT outperforms 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. HRT Growth Analysis

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%.
  • 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

  • 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.
  • 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

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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. HRT Valuation Analysis

4.1 Price/Earnings Ratio

  • HRT is valuated correctly with a Price/Earnings ratio of 12.49.
  • HRT's Price/Earnings ratio is rather cheap when compared to the industry. HRT is cheaper than 82.93% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.35, HRT is valued rather cheaply.
  • A Price/Forward Earnings ratio of 7.97 indicates a rather cheap valuation of HRT.
  • 93.90% of the companies in the same industry are more expensive than HRT, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of HRT to the average of the S&P500 Index (22.61), we can say HRT is valued rather cheaply.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRT indicates a somewhat cheap valuation: HRT is cheaper than 76.83% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, HRT is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
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

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

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

0

5. HRT Dividend Analysis

5.1 Amount

  • No dividends for HRT!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

HRT Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis FAQ

What is the fundamental rating for HRT stock?

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


What is the valuation status of HireRight Holdings Corporation (HRT) stock?

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


Can you provide the profitability details for HireRight Holdings Corporation?

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


Can you provide the financial health for HRT stock?

The financial health rating of HireRight Holdings Corporation (HRT) is 2 / 10.