ROBERT HALF INC (RHI)
US7703231032 - Common Stock
RHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. RHI gets an excellent profitability rating and is at the same time showing great financial health properties. RHI is not valued too expensively and it also shows a decent growth rate. Finally RHI also has an excellent dividend rating. These ratings would make RHI suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year RHI was profitable.
RHI had a positive operating cash flow in the past year.
RHI had positive earnings in each of the past 5 years.
RHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RHI has a better Return On Assets (12.21%) than 87.65% of its industry peers.
RHI has a better Return On Equity (23.22%) than 80.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.59%, RHI belongs to the top of the industry, outperforming 82.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 11.79%.
The last Return On Invested Capital (15.59%) for RHI is well below the 3 year average (30.99%), which needs to be investigated, but indicates that RHI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.21% | ||
| ROE | 23.22% | ||
| ROIC | 15.59% |
ROA(3y)18.71%
ROA(5y)17.55%
ROE(3y)37.06%
ROE(5y)35.26%
ROIC(3y)30.99%
ROIC(5y)27.87%
1.3 Margins
RHI's Profit Margin of 5.74% is fine compared to the rest of the industry. RHI outperforms 72.84% of its industry peers.
In the last couple of years the Profit Margin of RHI has declined.
RHI has a Operating Margin of 5.99%. This is comparable to the rest of the industry: RHI outperforms 51.85% of its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
The Gross Margin of RHI (39.79%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RHI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 5.74% | ||
| GM | 39.79% |
OM growth 3Y2.45%
OM growth 5Y-6.78%
PM growth 3Y2.37%
PM growth 5Y-2.99%
GM growth 3Y0.75%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
RHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for RHI has been reduced compared to 1 year ago.
The number of shares outstanding for RHI has been reduced compared to 5 years ago.
RHI 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
RHI has an Altman-Z score of 6.28. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.28, RHI belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
RHI 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 | 6.28 |
ROIC/WACC1.71
WACC9.11%
2.3 Liquidity
RHI has a Current Ratio of 1.85. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
RHI's Current ratio of 1.85 is fine compared to the rest of the industry. RHI outperforms 75.31% of its industry peers.
A Quick Ratio of 1.85 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a better Quick ratio (1.85) than 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The earnings per share for RHI have decreased strongly by -40.78% in the last year.
Measured over the past 5 years, RHI shows a small growth in Earnings Per Share. The EPS has been growing by 1.51% on average per year.
Looking at the last year, RHI shows a very negative growth in Revenue. The Revenue has decreased by -13.83% in the last year.
The Revenue has been growing slightly by 1.96% on average over the past years.
EPS 1Y (TTM)-40.78%
EPS 3Y12.61%
EPS 5Y1.51%
EPS growth Q2Q-46.49%
Revenue 1Y (TTM)-13.83%
Revenue growth 3Y7.76%
Revenue growth 5Y1.96%
Revenue growth Q2Q-14.01%
3.2 Future
The Earnings Per Share is expected to grow by 15.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y-11.93%
EPS Next 2Y7.8%
EPS Next 3Y10.53%
EPS Next 5Y15.6%
Revenue Next Year-3.53%
Revenue Next 2Y2.39%
Revenue Next 3Y2.59%
Revenue Next 5Y5.49%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.99 indicates a rather expensive valuation of RHI.
The rest of the industry has a similar Price/Earnings ratio as RHI.
RHI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.59 indicates a correct valuation of RHI.
RHI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RHI is cheaper than 69.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.30. RHI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.99 | ||
| Fwd PE | 15.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI is on the same level as its industry peers.
RHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RHI is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 16.12 |
4.3 Compensation for Growth
The decent profitability rating of RHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)13.87
EPS Next 2Y7.8%
EPS Next 3Y10.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.05%, RHI has a reasonable but not impressive dividend return.
RHI's Dividend Yield is rather good when compared to the industry average which is at 2.03. RHI pays more dividend than 93.83% of the companies in the same industry.
RHI's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
The dividend of RHI is nicely growing with an annual growth rate of 11.53%!
RHI has been paying a dividend for at least 10 years, so it has a reliable track record.
RHI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.53%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
RHI pays out 59.43% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.43%
EPS Next 2Y7.8%
EPS Next 3Y10.53%
ROBERT HALF INC
NYSE:RHI (5/8/2024, 5:40:00 PM)
After market: 70.12 0 (0%)70.12
+0.14 (+0.2%)
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 Cap7.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 | 20.99 | ||
| Fwd PE | 15.59 | ||
| 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)13.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.21% | ||
| ROE | 23.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.99% | ||
| PM (TTM) | 5.74% | ||
| GM | 39.79% | ||
| 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 Turnover2.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.85 | ||
| 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)-40.78%
EPS 3Y12.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.83%
Revenue growth 3Y7.76%
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