HRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. There are concerns on the financial health of HRT while its profitability can be described as average. HRT is valued quite cheap, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

HRT had positive earnings in the past year.
HRT had a positive operating cash flow in the past year.
HRT had negative earnings in 4 of the past 5 years.
Each year in the past 5 years HRT had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -0.46%, HRT is not doing good in the industry: 64.63% of the companies in the same industry are doing better.
The Return On Equity of HRT (-1.55%) is worse than 67.07% of its industry peers.
HRT has a Return On Invested Capital of 4.90%. This is comparable to the rest of the industry: HRT outperforms 45.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HRT is significantly below the industry average of 11.85%.
The 3 year average ROIC (4.42%) for HRT is below the current ROIC(4.90%), indicating increased profibility in the last year.

		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's Operating Margin of 11.85% is amongst the best of the industry. HRT outperforms 82.93% of its industry peers.
In the last couple of years the Operating Margin of HRT has grown nicely.
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 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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRT is destroying value.
The number of shares outstanding for HRT has been reduced compared to 1 year ago.
HRT has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.08, we must say that HRT is in the distress zone and has some risk of bankruptcy.
HRT's Altman-Z score of 1.08 is on the low side compared to the rest of the industry. HRT is outperformed by 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.
Looking at the Debt to FCF ratio, with a value of 10.42, HRT is doing worse than 63.41% of the companies in the same industry.
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.
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 Rank	Sector Rank
Current Ratio	1.76
Quick Ratio	1.76

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for HRT have decreased strongly by -53.25% in the last year.
The Revenue has decreased by -8.14% in the past 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
Based on estimates for the next years, HRT will show a small growth in Revenue. The Revenue will grow by 6.63% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.49 indicates a correct valuation of HRT.
Based on the Price/Earnings ratio, HRT is valued cheaper than 82.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. HRT is valued rather cheaply when compared to this.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HRT is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.49
Fwd PE	7.97

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.
HRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HRT is cheaper than 79.27% of the companies in the same industry.

		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.