HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
USA - NASDAQ:HSII - US4228191023 - Common Stock
58.63 USD
-0.19 (-0.32%)
58.63 USD
0 (0%)
Taking everything into account, HSII scores 5 out of 10 in our fundamental rating. HSII was compared to 86 industry peers in the Professional Services industry. Both the profitability and the financial health of HSII get a neutral evaluation. Nothing too spectacular is happening here. HSII is not valued too expensively and it also shows a decent growth rate.
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.
HSII had positive earnings in 4 of the past 5 years.
HSII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HSII has a Return On Assets of 2.93%. This is comparable to the rest of the industry: HSII outperforms 51.16% of its industry peers.
HSII has a Return On Equity (7.28%) which is in line with its industry peers.
The Return On Invested Capital of HSII (8.74%) is better than 62.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HSII is significantly below the industry average of 22.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 7.28% | ||
| ROIC | 8.74% |
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 (3.04%) which is in line with its industry peers.
HSII's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.59%, HSII is in line with its industry, outperforming 56.98% of the companies in the same industry.
In the last couple of years the Operating Margin of HSII has declined.
With an excellent Gross Margin value of 87.57%, HSII belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
HSII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.59% | ||
| PM (TTM) | 3.04% | ||
| GM | 87.57% |
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.
The number of shares outstanding for HSII has been increased compared to 1 year ago.
HSII has more shares outstanding than it did 5 years ago.
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 2.69. 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 of 2.69. This is comparable to the rest of the industry: HSII outperforms 50.00% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.69 |
ROIC/WACC1
WACC8.72%
2.3 Liquidity
HSII has a Current Ratio of 1.53. This is a normal value and indicates that HSII is financially healthy and should not expect problems in meeting its short term obligations.
HSII has a Current ratio (1.53) which is comparable to the rest of the industry.
HSII has a Quick Ratio of 1.53. 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 Quick ratio value of 1.53, HSII perfoms like the industry average, outperforming 56.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.38% 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.
The Revenue has grown by 11.53% in the past year. This is quite good.
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)23.38%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%15.28%
Revenue 1Y (TTM)11.53%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%15.94%
3.2 Future
The Earnings Per Share is expected to grow by 6.13% on average over the next years.
Based on estimates for the next years, HSII will show a small growth in Revenue. The Revenue will grow by 6.20% on average per year.
EPS Next Y-2.87%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y5.83%
Revenue Next 3Y6.2%
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
With a Price/Earnings ratio of 17.09, HSII is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of HSII indicates a somewhat cheap valuation: HSII is cheaper than 65.12% of the companies listed in the same industry.
HSII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 16.35, HSII is valued correctly.
61.63% of the companies in the same industry are more expensive than HSII, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HSII to the average of the S&P500 Index (34.57), we can say HSII is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
91.86% of the companies in the same industry are more expensive than HSII, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HSII is valued cheaper than 86.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.2 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.35
EPS Next 2Y6.88%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.02%.
HSII's Dividend Yield is a higher than the industry average which is at 4.32.
With a Dividend Yield of 1.02, HSII pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of HSII has a limited annual growth rate of 0.64%.
HSII has paid a dividend for at least 10 years, which is 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 35.14% of its income as dividend. This is a sustainable payout ratio.
HSII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.14%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
58.63
-0.19 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change0.12%
Ins Owners1.47%
Ins Owner Change1.57%
Market Cap1.22B
Revenue(TTM)1.22B
Net Income(TTM)37.05M
Analysts45.71
Price Target60.18 (2.64%)
Short Float %1.7%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.64
Dividend Growth(5Y)0.64%
DP35.14%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.1%
Min EPS beat(2)7.07%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)21.68%
Min EPS beat(4)-2.45%
Max EPS beat(4)68.96%
EPS beat(8)7
Avg EPS beat(8)15.42%
EPS beat(12)10
Avg EPS beat(12)13.71%
EPS beat(16)13
Avg EPS beat(16)13.68%
Revenue beat(2)2
Avg Revenue beat(2)5.17%
Min Revenue beat(2)4.75%
Max Revenue beat(2)5.59%
Revenue beat(4)4
Avg Revenue beat(4)4.94%
Min Revenue beat(4)4.61%
Max Revenue beat(4)5.59%
Revenue beat(8)8
Avg Revenue beat(8)3.68%
Revenue beat(12)11
Avg Revenue beat(12)2.99%
Revenue beat(16)13
Avg Revenue beat(16)2.7%
PT rev (1m)10.63%
PT rev (3m)13.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 16.35 | ||
| P/S | 1 | ||
| P/FCF | 9.2 | ||
| P/OCF | 7.56 | ||
| P/B | 2.39 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)3.43
EY5.85%
EPS(NY)3.59
Fwd EY6.12%
FCF(TTM)6.37
FCFY10.87%
OCF(TTM)7.76
OCFY13.23%
SpS58.59
BVpS24.49
TBVpS17.21
PEG (NY)N/A
PEG (5Y)4.35
Graham Number43.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 7.28% | ||
| ROCE | 11.06% | ||
| ROIC | 8.74% | ||
| ROICexc | 32.14% | ||
| ROICexgc | 138.41% | ||
| OM | 6.59% | ||
| PM (TTM) | 3.04% | ||
| GM | 87.57% | ||
| FCFM | 10.87% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 140.86% | ||
| Cap/Sales | 2.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 160.16% | ||
| Profit Quality | 357.48% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.69 |
F-Score5
WACC8.72%
ROIC/WACC1
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)23.38%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%15.28%
EPS Next Y-2.87%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue 1Y (TTM)11.53%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%15.94%
Revenue Next Year10.47%
Revenue Next 2Y5.83%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
EBIT growth 1Y5.29%
EBIT growth 3Y-10.2%
EBIT growth 5Y1.81%
EBIT Next Year95.07%
EBIT Next 3Y30.7%
EBIT Next 5YN/A
FCF growth 1Y503.79%
FCF growth 3Y-22.36%
FCF growth 5Y10.54%
OCF growth 1Y894.35%
OCF growth 3Y-17.86%
OCF growth 5Y13.86%
HEIDRICK & STRUGGLES INTL / HSII FAQ
What is the fundamental rating for HSII stock?
ChartMill assigns a fundamental rating of 5 / 10 to HSII.
What is the valuation status for HSII stock?
ChartMill assigns a valuation rating of 5 / 10 to HEIDRICK & STRUGGLES INTL (HSII). This can be considered as Fairly Valued.
What is the profitability of HSII stock?
HEIDRICK & STRUGGLES INTL (HSII) has a profitability rating of 4 / 10.
Can you provide the financial health for HSII stock?
The financial health rating of HEIDRICK & STRUGGLES INTL (HSII) is 6 / 10.
Can you provide the expected EPS growth for HSII stock?
The Earnings per Share (EPS) of HEIDRICK & STRUGGLES INTL (HSII) is expected to decline by -2.87% in the next year.