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 only an average score on both its financial health and profitability. HSII has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HSII had positive earnings in the past year.
In the past year HSII had a positive cash flow from operations.
Of the past 5 years HSII 4 years were profitable.
HSII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HSII's Return On Assets of 0.78% is in line compared to the rest of the industry. HSII outperforms 41.46% of its industry peers.
HSII's Return On Equity of 1.72% is in line compared to the rest of the industry. HSII outperforms 41.46% of its industry peers.
HSII has a better Return On Invested Capital (8.66%) than 64.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HSII is in line with the industry average of 12.61%.
| 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
HSII has a Profit Margin (0.71%) which is in line with its industry peers.
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 better Gross Margin (87.77%) than 95.12% 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
HSII has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HSII has more shares outstanding
HSII has more shares outstanding than it did 5 years ago.
HSII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.90 indicates that HSII is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.90, HSII is in line with its industry, outperforming 51.22% of the companies in the same industry.
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 | 2.9 |
ROIC/WACC0.95
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.70 indicates that HSII should not have too much problems paying its short term obligations.
HSII has a Current ratio of 1.70. This is in the better half of the industry: HSII outperforms 65.85% of its industry peers.
HSII has a Quick 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.
With a decent Quick ratio value of 1.70, HSII is doing good in the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.18% over the past year.
Measured over the past 5 years, HSII shows a small growth in Earnings Per Share. The EPS has been growing by 3.93% on average per year.
HSII shows a small growth in Revenue. In the last year, the Revenue has grown by 6.16%.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
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 5.02% on average per year.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-8.23%
EPS Next 2Y5.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y3.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 14.05, which indicates a correct valuation of HSII.
73.17% of the companies in the same industry are more expensive than HSII, based on the Price/Earnings ratio.
HSII is valuated rather cheaply when we compare the Price/Earnings ratio to 26.52, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.74, which indicates a correct valuation of HSII.
Based on the Price/Forward Earnings ratio, HSII is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, HSII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
HSII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSII is cheaper than 93.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HSII is valued cheaply inside the industry as 91.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 4.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.58
EPS Next 2Y5.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, HSII has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.12, HSII pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.37, HSII pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y5.02%
EPS Next 3YN/A
44.12
+0.46 (+1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.42%
Inst Owner Change2.98%
Ins Owners1.11%
Ins Owner Change4.33%
Market Cap909.75M
Analysts82.5
Price Target51.68 (17.14%)
Short Float %2.2%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)0%
PT rev (3m)4.83%
EPS NQ rev (1m)2.74%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)5.02%
EPS NY rev (3m)-2.47%
Revenue NQ rev (1m)3.43%
Revenue NQ rev (3m)3.64%
Revenue NY rev (1m)4.11%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 12.74 | ||
| P/S | 0.8 | ||
| P/FCF | 9.21 | ||
| P/OCF | 7.48 | ||
| P/B | 1.96 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)3.14
EY7.12%
EPS(NY)3.46
Fwd EY7.85%
FCF(TTM)4.79
FCFY10.86%
OCF(TTM)5.9
OCFY13.37%
SpS55
BVpS22.55
TBVpS15.24
PEG (NY)N/A
PEG (5Y)3.58
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 | 2.9 |
F-Score5
WACC9.15%
ROIC/WACC0.95
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-8.23%
EPS Next 2Y5.02%
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 Year5.14%
Revenue Next 2Y3.5%
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%