HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
NASDAQ:HSII - Nasdaq - US4228191023 - Common Stock - Currency: USD
HSII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. HSII has only an average score on both its financial health and profitability. HSII has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HSII was profitable.
HSII had a positive operating cash flow in the past year.
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 has a Return On Assets (0.78%) which is in line with its industry peers.
HSII has a Return On Equity (1.72%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 8.66%, HSII is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HSII is in line with the industry average of 12.28%.
| 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 has a Profit Margin (0.71%) which is in line with its industry peers.
In the last couple of years the Profit Margin of HSII has declined.
The Operating Margin of HSII (6.52%) is comparable to the rest of the industry.
HSII's Operating Margin has declined in the last couple of years.
HSII's Gross Margin of 87.77% is amongst the best of the industry. HSII outperforms 96.34% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HSII is creating some value.
HSII has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HSII has been increased compared to 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 2.97. 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.
With a Altman-Z score value of 2.97, HSII perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
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 | 2.97 |
ROIC/WACC0.96
WACC8.99%
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's Current ratio of 1.70 is fine compared to the rest of the industry. HSII outperforms 64.63% of its industry peers.
A Quick Ratio of 1.70 indicates that HSII should not have too much problems paying its short term obligations.
HSII has a better Quick ratio (1.70) than 64.63% 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.
The Earnings Per Share has been growing slightly by 3.93% on average over the past years.
Looking at the last year, HSII shows a small growth in Revenue. The Revenue has grown by 6.16% in the last year.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 5.09% on average over the next years.
HSII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
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
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
A Price/Earnings ratio of 14.91 indicates a correct valuation of HSII.
Compared to the rest of the industry, the Price/Earnings ratio of HSII indicates a somewhat cheap valuation: HSII is cheaper than 75.61% 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 27.69.
Based on the Price/Forward Earnings ratio of 13.50, the valuation of HSII can be described as correct.
71.95% of the companies in the same industry are more expensive than HSII, based on the Price/Forward Earnings ratio.
HSII is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
95.12% of the companies in the same industry are more expensive than HSII, based on the Enterprise Value to EBITDA ratio.
86.59% 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 | 9.78 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.8
EPS Next 2Y5.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.30%.
HSII's Dividend Yield is a higher than the industry average which is at 2.11.
With a Dividend Yield of 1.30, HSII pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
HSII pays out 161.25% of its income as dividend. This is not a sustainable payout ratio.
HSII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP161.25%
EPS Next 2Y5.09%
EPS Next 3YN/A
NASDAQ:HSII (7/24/2025, 10:42:35 AM)
46.82
-0.05 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.05%
Ins Owners1.48%
Ins Owner Change3.23%
Market Cap965.43M
Analysts82.5
Price Target52.36 (11.83%)
Short Float %1.79%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)2.67%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)0%
EPS NY rev (3m)6.44%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)3.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 13.5 | ||
| P/S | 0.85 | ||
| P/FCF | 9.78 | ||
| P/OCF | 7.94 | ||
| P/B | 2.08 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 5.7 |
EPS(TTM)3.14
EY6.71%
EPS(NY)3.47
Fwd EY7.41%
FCF(TTM)4.79
FCFY10.23%
OCF(TTM)5.9
OCFY12.6%
SpS55
BVpS22.55
TBVpS15.24
PEG (NY)N/A
PEG (5Y)3.8
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 | 2.97 |
F-Score5
WACC8.99%
ROIC/WACC0.96
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%