HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
USA - NASDAQ:HSII - US4228191023 - Common Stock
58.21 USD
-0.05 (-0.09%)
58.21 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to HSII. HSII was compared to 83 industry peers in the Professional Services industry. HSII has an average financial health and profitability rating. HSII has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HSII had positive earnings in the past year.
HSII had a positive operating cash flow in the past year.
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
HSII has a Return On Assets (3.00%) which is comparable to the rest of the industry.
HSII has a Return On Equity of 6.95%. This is comparable to the rest of the industry: HSII outperforms 52.33% of its industry peers.
The Return On Invested Capital of HSII (8.90%) is better than 63.95% of its industry peers.
HSII had an Average Return On Invested Capital over the past 3 years of 10.87%. This is below the industry average of 13.40%.
| 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 (2.92%) which is comparable to the rest of the industry.
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.
HSII's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 87.73%, HSII belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
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
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.
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 2.95. 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 (2.95) which is in line with 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 | 2.95 |
ROIC/WACC1.03
WACC8.66%
2.3 Liquidity
HSII has a Current Ratio of 1.63. This is a normal value and indicates that HSII is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.63, HSII is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
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 63.95% 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.
The Earnings Per Share has been growing slightly by 3.93% on average over the past years.
The Revenue has grown by 8.89% in the past year. This is quite good.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
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.
HSII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.20% yearly.
EPS Next Y-2.87%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y6.13%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HSII is valuated rather expensively with a Price/Earnings ratio of 17.53.
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 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.23 indicates a correct valuation of HSII.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSII indicates a somewhat cheap valuation: HSII is cheaper than 62.79% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, HSII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.53 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HSII is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HSII is valued cheaper than 80.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.47
EPS Next 2Y6.88%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.03%.
Compared to an average industry Dividend Yield of 3.95, HSII pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, HSII pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 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.
HSII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.89%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
58.21
-0.05 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change0.57%
Ins Owners1.47%
Ins Owner Change1.57%
Market Cap1.21B
Analysts82.5
Price Target54.4 (-6.55%)
Short Float %1.17%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)0%
PT rev (3m)3.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)3.46%
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 | 17.53 | ||
| Fwd PE | 16.23 | ||
| P/S | 1.03 | ||
| P/FCF | 10.87 | ||
| P/OCF | 9.48 | ||
| P/B | 2.46 | ||
| P/tB | 3.57 | ||
| EV/EBITDA | 6.21 |
EPS(TTM)3.32
EY5.7%
EPS(NY)3.59
Fwd EY6.16%
FCF(TTM)5.35
FCFY9.2%
OCF(TTM)6.14
OCFY10.55%
SpS56.42
BVpS23.69
TBVpS16.32
PEG (NY)N/A
PEG (5Y)4.47
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 | 2.95 |
F-Score5
WACC8.66%
ROIC/WACC1.03
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-2.87%
EPS Next 2Y6.88%
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 Year10.47%
Revenue Next 2Y6.13%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
EBIT growth 1Y1.18%
EBIT growth 3Y-10.2%
EBIT growth 5Y1.81%
EBIT Next Year95.07%
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%