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 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.
HSII had positive earnings in 4 of the past 5 years.
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 41.46% of its industry peers.
Looking at the Return On Equity, with a value of 1.72%, HSII is in line with its industry, outperforming 41.46% of the companies in the same industry.
HSII's Return On Invested Capital of 8.66% is fine compared to the rest 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 12.36%.
| 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's Profit Margin of 0.71% is in line compared to the rest of the industry. HSII outperforms 42.68% of its industry peers.
HSII's Profit Margin has declined in the last couple of years.
HSII has a Operating Margin of 6.52%. This is comparable to the rest of the industry: HSII outperforms 59.76% of its industry peers.
In the last couple of years the Operating Margin of HSII has declined.
With an excellent Gross Margin value of 87.77%, HSII belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
HSII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| 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
HSII has an Altman-Z score of 2.91. 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.
Looking at the Altman-Z score, with a value of 2.91, HSII is in line with its industry, outperforming 53.66% of the companies in the same industry.
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 | 2.91 |
ROIC/WACC0.97
WACC8.9%
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 has a better Current ratio (1.70) than 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.
HSII has a Quick ratio of 1.70. This is in the better half of the industry: HSII outperforms 65.85% 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.
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.
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.
The Revenue is expected to grow by 4.07% on average over the next years.
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
With a Price/Earnings ratio of 14.19, HSII is valued correctly.
Based on the Price/Earnings ratio, HSII is valued a bit cheaper than 76.83% of the companies in the same industry.
HSII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 12.85, the valuation of HSII can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSII indicates a somewhat cheap valuation: HSII is cheaper than 74.39% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. HSII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
96.34% of the companies in the same industry are more expensive than HSII, based on the Enterprise Value to EBITDA ratio.
87.80% 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 | 9.3 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.61
EPS Next 2Y5.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.40%, HSII has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.15, HSII pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, HSII's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
161.25% of the earnings are spent on dividend by HSII. 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
44.56
+0.5 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change2.98%
Ins Owners1.48%
Ins Owner Change4.29%
Market Cap918.83M
Analysts82.5
Price Target52.36 (17.5%)
Short Float %1.86%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)6.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.74%
EPS NY rev (1m)1.36%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.43%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 12.85 | ||
| P/S | 0.81 | ||
| P/FCF | 9.3 | ||
| P/OCF | 7.55 | ||
| P/B | 1.98 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)3.14
EY7.05%
EPS(NY)3.47
Fwd EY7.78%
FCF(TTM)4.79
FCFY10.75%
OCF(TTM)5.9
OCFY13.24%
SpS55
BVpS22.55
TBVpS15.24
PEG (NY)N/A
PEG (5Y)3.61
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 | 2.91 |
F-Score5
WACC8.9%
ROIC/WACC0.97
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%