HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
NASDAQ:HSII - Nasdaq - US4228191023 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to HSII. HSII was compared to 82 industry peers in the Professional Services industry. HSII has an average financial health and profitability rating. HSII has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HSII had positive earnings in the past year.
HSII had a positive operating cash flow in the past year.
Of the past 5 years HSII 4 years were profitable.
Of the past 5 years HSII 4 years had a positive operating cash flow.
1.2 Ratios
HSII's Return On Assets of 0.78% is in line compared to the rest of the industry. HSII outperforms 42.68% of its industry peers.
HSII has a Return On Equity (1.72%) which is in line with its industry peers.
HSII has a Return On Invested Capital of 8.66%. This is in the better half of the industry: HSII outperforms 64.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSII is in line with the industry average of 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 1.72% | ||
| ROIC | 8.66% |
ROA(3y)4.09%
ROA(5y)2.81%
ROE(3y)11.02%
ROE(5y)8.12%
ROIC(3y)10.87%
ROIC(5y)11.02%
1.3 Margins
The Profit Margin of HSII (0.71%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HSII has declined.
HSII has a Operating Margin (6.52%) which is comparable to the rest of the industry.
HSII's Operating Margin has declined in the last couple of years.
HSII has a Gross Margin of 87.77%. This is amongst the best in the industry. HSII outperforms 96.34% of its industry peers.
In the last couple of years the Gross Margin of HSII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 0.71% | ||
| GM | 87.77% |
OM growth 3Y-13.17%
OM growth 5Y-6.58%
PM growth 3Y-52.28%
PM growth 5Y-34.45%
GM growth 3Y-2.32%
GM growth 5Y-2.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HSII is creating some value.
HSII has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HSII has more shares outstanding
There is no outstanding debt for HSII. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
HSII has an Altman-Z score of 2.95. This is not the best score and indicates that HSII is in the grey zone with still only limited risk for bankruptcy at the moment.
HSII has a Altman-Z score (2.95) which is in line with its industry peers.
HSII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.95 |
ROIC/WACC0.96
WACC9.02%
2.3 Liquidity
HSII has a Current Ratio of 1.70. This is a normal value and indicates that HSII is financially healthy and should not expect problems in meeting its short term obligations.
HSII's Current ratio of 1.70 is fine compared to the rest of the industry. HSII outperforms 64.63% of its industry peers.
A Quick Ratio of 1.70 indicates that HSII should not have too much problems paying its short term obligations.
The Quick ratio of HSII (1.70) is better than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
HSII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.18%, which is quite good.
The Earnings Per Share has been growing slightly by 3.93% on average over the past years.
Looking at the last year, HSII shows a small growth in Revenue. The Revenue has grown by 6.16% in the last year.
Measured over the past years, HSII shows a quite strong growth in Revenue. The Revenue has been growing by 8.99% on average per year.
EPS 1Y (TTM)10.18%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%0%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%8.39%
3.2 Future
Based on estimates for the next years, HSII will show a small growth in Earnings Per Share. The EPS will grow by 5.09% on average per year.
Based on estimates for the next years, HSII will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y-6.99%
EPS Next 2Y5.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.51%
Revenue Next 2Y4.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 14.79 indicates a correct valuation of HSII.
Compared to the rest of the industry, the Price/Earnings ratio of HSII indicates a somewhat cheap valuation: HSII is cheaper than 74.39% of the companies listed in the same industry.
HSII is valuated rather cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.39, which indicates a correct valuation of HSII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSII indicates a somewhat cheap valuation: HSII is cheaper than 71.95% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HSII to the average of the S&P500 Index (36.71), we can say HSII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 13.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSII is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
86.59% of the companies in the same industry are more expensive than HSII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.7 | ||
| EV/EBITDA | 5.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.77
EPS Next 2Y5.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.30%.
Compared to an average industry Dividend Yield of 2.11, HSII pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, HSII's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of HSII has a limited annual growth rate of 0.64%.
HSII has been paying a dividend for at least 10 years, so it has a reliable track record.
HSII has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.64%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
HSII pays out 161.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HSII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP161.25%
EPS Next 2Y5.09%
EPS Next 3YN/A
NASDAQ:HSII (7/23/2025, 11:17:19 AM)
46.44
+0.2 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.05%
Ins Owners1.48%
Ins Owner Change3.23%
Market Cap957.59M
Analysts82.5
Price Target52.36 (12.75%)
Short Float %1.79%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend0.64
Dividend Growth(5Y)0.64%
DP161.25%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)33.26%
Min EPS beat(2)-2.45%
Max EPS beat(2)68.96%
EPS beat(4)3
Avg EPS beat(4)21.86%
Min EPS beat(4)-2.45%
Max EPS beat(4)68.96%
EPS beat(8)6
Avg EPS beat(8)13.16%
EPS beat(12)10
Avg EPS beat(12)14.99%
EPS beat(16)13
Avg EPS beat(16)17.99%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)4.61%
Max Revenue beat(2)4.83%
Revenue beat(4)4
Avg Revenue beat(4)3.96%
Min Revenue beat(4)2.81%
Max Revenue beat(4)4.83%
Revenue beat(8)8
Avg Revenue beat(8)2.92%
Revenue beat(12)9
Avg Revenue beat(12)1.68%
Revenue beat(16)13
Avg Revenue beat(16)3.3%
PT rev (1m)1.32%
PT rev (3m)2.67%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)0%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)3.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 13.39 | ||
| P/S | 0.84 | ||
| P/FCF | 9.7 | ||
| P/OCF | 7.87 | ||
| P/B | 2.06 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)3.14
EY6.76%
EPS(NY)3.47
Fwd EY7.47%
FCF(TTM)4.79
FCFY10.31%
OCF(TTM)5.9
OCFY12.7%
SpS55
BVpS22.55
TBVpS15.24
PEG (NY)N/A
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 1.72% | ||
| ROCE | 10.96% | ||
| ROIC | 8.66% | ||
| ROICexc | 16.7% | ||
| ROICexgc | 29.38% | ||
| OM | 6.52% | ||
| PM (TTM) | 0.71% | ||
| GM | 87.77% | ||
| FCFM | 8.71% |
ROA(3y)4.09%
ROA(5y)2.81%
ROE(3y)11.02%
ROE(5y)8.12%
ROIC(3y)10.87%
ROIC(5y)11.02%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.76%
ROCE(5y)13.95%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-49.09%
ROICexc growth 5Y4.22%
OM growth 3Y-13.17%
OM growth 5Y-6.58%
PM growth 3Y-52.28%
PM growth 5Y-34.45%
GM growth 3Y-2.32%
GM growth 5Y-2.06%
F-Score5
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 120.95% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.05% | ||
| Profit Quality | 1234.13% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 2.95 |
F-Score5
WACC9.02%
ROIC/WACC0.96
Cap/Depr(3y)105.62%
Cap/Depr(5y)75.16%
Cap/Sales(3y)1.56%
Cap/Sales(5y)1.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.18%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%0%
EPS Next Y-6.99%
EPS Next 2Y5.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.16%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%8.39%
Revenue Next Year5.51%
Revenue Next 2Y4.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.81%
EBIT growth 3Y-10.2%
EBIT growth 5Y1.81%
EBIT Next Year78.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y214.51%
FCF growth 3Y-22.36%
FCF growth 5Y10.54%
OCF growth 1Y173.33%
OCF growth 3Y-17.86%
OCF growth 5Y13.86%