HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
NASDAQ:HSII - US4228191023 - Common Stock
50.53 USD
-0.06 (-0.12%)
50.53 USD
0 (0%)
Overall HSII gets a fundamental rating of 5 out of 10. We evaluated HSII against 81 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.
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
The Return On Assets of HSII (3.00%) is comparable to the rest of the industry.
HSII's Return On Equity of 6.95% is in line compared to the rest of the industry. HSII outperforms 51.85% of its industry peers.
HSII has a Return On Invested Capital of 8.90%. This is in the better half of the industry: HSII outperforms 62.96% of its industry peers.
HSII had an Average Return On Invested Capital over the past 3 years of 10.87%. This is in line with the industry average of 12.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 6.95% | ||
| ROIC | 8.9% |
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 of 2.92%. This is comparable to the rest of the industry: HSII outperforms 50.62% of its industry peers.
HSII's Profit Margin has declined in the last couple of years.
The Operating Margin of HSII (6.83%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HSII has declined.
HSII has a better Gross Margin (87.73%) than 95.06% of its industry peers.
In the last couple of years the Gross Margin of HSII has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 2.92% | ||
| GM | 87.73% |
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.
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 2.80 indicates that HSII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HSII's Altman-Z score of 2.80 is in line compared to the rest of the industry. HSII outperforms 45.68% 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 | 0 | ||
| Altman-Z | 2.8 |
ROIC/WACC1
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.63 indicates that HSII should not have too much problems paying its short term obligations.
HSII has a better Current ratio (1.63) than 64.20% of its industry peers.
A Quick Ratio of 1.63 indicates that HSII should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.63, HSII is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
HSII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.00%, which is quite good.
HSII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.93% yearly.
Looking at the last year, HSII shows a quite strong growth in Revenue. The Revenue has grown by 8.89% in the last year.
HSII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.99% yearly.
EPS 1Y (TTM)19%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%26.87%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%13.86%
3.2 Future
HSII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.13% yearly.
The Revenue is expected to grow by 6.20% on average over the next years.
EPS Next Y-6.12%
EPS Next 2Y6.25%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue Next Year10.38%
Revenue Next 2Y5.53%
Revenue Next 3Y6.2%
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 correctly with a Price/Earnings ratio of 15.22.
HSII's Price/Earnings ratio is a bit cheaper when compared to the industry. HSII is cheaper than 74.07% of the companies in the same industry.
HSII is valuated rather cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.26, the valuation of HSII can be described as correct.
Based on the Price/Forward Earnings ratio, HSII is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
HSII's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSII is valued cheaply inside the industry as 95.06% of the companies are valued more expensively.
85.19% 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 | 9.42 | ||
| EV/EBITDA | 4.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.88
EPS Next 2Y6.25%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.23%.
HSII's Dividend Yield is a higher than the industry average which is at 2.25.
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 | 1.23% |
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 37.89% of its income as dividend. This is a sustainable payout ratio.
The dividend of HSII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.89%
EPS Next 2Y6.25%
EPS Next 3Y6.13%
50.53
-0.06 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.36%
Inst Owner Change0.13%
Ins Owners1.46%
Ins Owner Change3.55%
Market Cap1.05B
Analysts82.5
Price Target53.04 (4.97%)
Short Float %1.62%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend0.64
Dividend Growth(5Y)0.64%
DP37.89%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.34%
Min EPS beat(2)-2.45%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)20.99%
Min EPS beat(4)-2.45%
Max EPS beat(4)68.96%
EPS beat(8)7
Avg EPS beat(8)14.88%
EPS beat(12)10
Avg EPS beat(12)14.33%
EPS beat(16)13
Avg EPS beat(16)16.49%
Revenue beat(2)2
Avg Revenue beat(2)5.21%
Min Revenue beat(2)4.83%
Max Revenue beat(2)5.59%
Revenue beat(4)4
Avg Revenue beat(4)4.66%
Min Revenue beat(4)3.6%
Max Revenue beat(4)5.59%
Revenue beat(8)8
Avg Revenue beat(8)3.41%
Revenue beat(12)10
Avg Revenue beat(12)2.16%
Revenue beat(16)13
Avg Revenue beat(16)2.62%
PT rev (1m)1.3%
PT rev (3m)2.63%
EPS NQ rev (1m)2.96%
EPS NQ rev (3m)-5.03%
EPS NY rev (1m)0.93%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)6.09%
Revenue NQ rev (3m)6.12%
Revenue NY rev (1m)4.62%
Revenue NY rev (3m)4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 14.26 | ||
| P/S | 0.89 | ||
| P/FCF | 9.42 | ||
| P/OCF | 8.21 | ||
| P/B | 2.13 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 4.61 |
EPS(TTM)3.32
EY6.57%
EPS(NY)3.54
Fwd EY7.01%
FCF(TTM)5.37
FCFY10.62%
OCF(TTM)6.16
OCFY12.19%
SpS56.56
BVpS23.75
TBVpS16.36
PEG (NY)N/A
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 6.95% | ||
| ROCE | 11.27% | ||
| ROIC | 8.9% | ||
| ROICexc | 20.32% | ||
| ROICexgc | 39.96% | ||
| OM | 6.83% | ||
| PM (TTM) | 2.92% | ||
| GM | 87.73% | ||
| FCFM | 9.49% |
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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.01% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.51% | ||
| Profit Quality | 325.14% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.8 |
F-Score5
WACC8.9%
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)19%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%26.87%
EPS Next Y-6.12%
EPS Next 2Y6.25%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue 1Y (TTM)8.89%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%13.86%
Revenue Next Year10.38%
Revenue Next 2Y5.53%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
EBIT growth 1Y1.18%
EBIT growth 3Y-10.2%
EBIT growth 5Y1.81%
EBIT Next Year91.15%
EBIT Next 3Y30.7%
EBIT Next 5YN/A
FCF growth 1Y2326.04%
FCF growth 3Y-22.36%
FCF growth 5Y10.54%
OCF growth 1Y1368.03%
OCF growth 3Y-17.86%
OCF growth 5Y13.86%