HireRight Holdings Corporation (HRT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HRT - US4335371070 - Common Stock
14.36 USD
-0.02 (-0.14%)
14.36 USD
0 (0%)
Overall HRT gets a fundamental rating of 4 out of 10. We evaluated HRT against 87 industry peers in the Professional Services industry. While HRT is still in line with the averages on profitability rating, there are concerns on its financial health. HRT is cheap, but on the other hand it scores bad on growth.
1. Profitability
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.
1.2 Ratios
- The Return On Assets of HRT (-0.46%) is worse than 64.63% of its industry peers.
- With a Return On Equity value of -1.55%, HRT is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 4.90%, HRT perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HRT is significantly below the industry average of 11.85%.
- 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
- HRT has a Operating Margin of 11.85%. This is amongst the best in the industry. HRT outperforms 82.93% of its industry peers.
- In the last couple of years the Operating Margin of HRT has grown nicely.
- HRT has a Gross Margin (48.75%) which is in line with its industry peers.
- 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
- HRT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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.
- 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.
- HRT's Debt to FCF ratio of 10.42 is on the low side compared to the rest of the industry. HRT is outperformed by 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.
- 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 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.
- Looking at the Quick 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.
| 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%.
- Looking at the last year, HRT shows a decrease in Revenue. The Revenue has decreased by -8.14% in the last year.
- The Revenue has been growing by 10.15% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 23.89% on average over the next years. This is a very strong growth
- 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
- 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
- A Price/Earnings ratio of 12.49 indicates a correct valuation of HRT.
- 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 27.47, HRT is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.97 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 7.97 |
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.
- 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
- HRT's 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)05-07 2024-05-07/amc
Earnings (Next)08-06 2024-08-06/amc
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.
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.