HEIDRICK & STRUGGLES INTL (HSII)
US4228191023 - Common Stock
HSII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. HSII has an average financial health and profitability rating. HSII has a valuation in line with the averages, but it does not seem to be growing. Finally HSII also has an excellent dividend rating. With these ratings, HSII could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year HSII was profitable.
HSII had a negative operating cash flow in the past year.
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 4.77%. This is in the better half of the industry: HSII outperforms 63.75% of its industry peers.
Looking at the Return On Equity, with a value of 11.78%, HSII is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
HSII has a Return On Invested Capital (7.65%) which is in line with its industry peers.
HSII had an Average Return On Invested Capital over the past 3 years of 10.58%. This is in line with the industry average of 12.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 11.78% | ||
| ROIC | 7.65% |
ROA(3y)6.03%
ROA(5y)3.77%
ROE(3y)17.58%
ROE(5y)10.76%
ROIC(3y)10.58%
ROIC(5y)9.5%
1.3 Margins
HSII has a Profit Margin of 5.23%. This is in the better half of the industry: HSII outperforms 67.50% of its industry peers.
HSII's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.93%, HSII is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
HSII's Operating Margin has declined in the last couple of years.
HSII has a Gross Margin of 88.15%. This is amongst the best in the industry. HSII outperforms 96.25% of its industry peers.
In the last couple of years the Gross Margin of HSII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.93% | ||
| PM (TTM) | 5.23% | ||
| GM | 88.15% |
OM growth 3Y0.09%
OM growth 5Y-3.26%
PM growth 3YN/A
PM growth 5Y-4.85%
GM growth 3Y-3.72%
GM growth 5Y-1.96%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HSII is still creating some value.
Compared to 1 year ago, HSII has more shares outstanding
Compared to 5 years ago, HSII has more shares outstanding
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 2.21 indicates that HSII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HSII has a worse Altman-Z score (2.21) than 62.50% of 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 | N/A | ||
| Altman-Z | 2.21 |
ROIC/WACC0.82
WACC9.31%
2.3 Liquidity
HSII has a Current Ratio of 1.58. 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 of 1.58. This is in the better half of the industry: HSII outperforms 65.00% of its industry peers.
HSII has a Quick Ratio of 1.58. 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 Quick ratio of 1.58. This is in the better half of the industry: HSII outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
HSII shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.03%.
HSII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.89% yearly.
The Revenue has decreased by -3.91% in the past year.
Measured over the past years, HSII shows a small growth in Revenue. The Revenue has been growing by 7.19% on average per year.
EPS 1Y (TTM)-24.03%
EPS 3Y17.99%
EPS 5Y2.89%
EPS growth Q2Q-7.69%
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y18.27%
Revenue growth 5Y7.19%
Revenue growth Q2Q7.83%
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 6.73% on average per year.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y-6.56%
EPS Next 2Y6.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.59%
Revenue Next 2Y3.77%
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
HSII is valuated reasonably with a Price/Earnings ratio of 10.37.
Based on the Price/Earnings ratio, HSII is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
HSII is valuated cheaply when we compare the Price/Earnings ratio to 24.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.10, which indicates a very decent valuation of HSII.
91.25% of the companies in the same industry are more expensive than HSII, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, HSII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
HSII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSII is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 0.64 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.59
EPS Next 2Y6.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.98%.
Compared to an average industry Dividend Yield of 2.07, HSII pays a better dividend. On top of this HSII pays more dividend than 85.00% of the companies listed in the same industry.
HSII's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of HSII has a limited annual growth rate of 3.03%.
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)3.03%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
23.02% of the earnings are spent on dividend by HSII. This is a low number and sustainable payout ratio.
The dividend of HSII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.02%
EPS Next 2Y6.73%
EPS Next 3YN/A
HEIDRICK & STRUGGLES INTL
NASDAQ:HSII (4/29/2024, 1:57:05 PM)
30.5
+0.24 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap613.66M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 11.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 11.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.93% | ||
| PM (TTM) | 5.23% | ||
| GM | 88.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-24.03%
EPS 3Y17.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y18.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y