ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - NYSE:RHI - US7703231032 - Common Stock
34.43 USD
+0.19 (+0.55%)
35 USD
+0.57 (+1.66%)
We assign a fundamental rating of 6 out of 10 to RHI. RHI was compared to 82 industry peers in the Professional Services industry. RHI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RHI has a decent growth rate and is not valued too expensively. RHI also has an excellent dividend rating. These ratings could make RHI a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
RHI had positive earnings in the past year.
In the past year RHI had a positive cash flow from operations.
Each year in the past 5 years RHI has been profitable.
RHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RHI (6.29%) is better than 64.63% of its industry peers.
The Return On Equity of RHI (13.57%) is better than 63.41% of its industry peers.
RHI has a Return On Invested Capital (7.76%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 13.20%.
The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(7.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 13.57% | ||
| ROIC | 7.76% |
ROA(3y)14.89%
ROA(5y)15.38%
ROE(3y)28.7%
ROE(5y)30.97%
ROIC(3y)22.98%
ROIC(5y)23.62%
1.3 Margins
RHI has a Profit Margin (3.20%) which is comparable to the rest of the industry.
RHI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.97%, RHI is in line with its industry, outperforming 42.68% of the companies in the same industry.
RHI's Operating Margin has declined in the last couple of years.
RHI's Gross Margin of 38.00% is in line compared to the rest of the industry. RHI outperforms 53.66% of its industry peers.
RHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% |
OM growth 3Y-28.69%
OM growth 5Y-14.85%
PM growth 3Y-22.33%
PM growth 5Y-10.31%
GM growth 3Y-2.42%
GM growth 5Y-1.38%
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
An Altman-Z score of 3.86 indicates that RHI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.86, RHI is in the better half of the industry, outperforming 67.07% 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 | 3.86 |
ROIC/WACC0.89
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.57 indicates that RHI should not have too much problems paying its short term obligations.
RHI's Current ratio of 1.57 is in line compared to the rest of the industry. RHI outperforms 57.32% of its industry peers.
A Quick Ratio of 1.57 indicates that RHI should not have too much problems paying its short term obligations.
RHI's Quick ratio of 1.57 is in line compared to the rest of the industry. RHI outperforms 59.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.67%.
Measured over the past years, RHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.95% on average per year.
Looking at the last year, RHI shows a decrease in Revenue. The Revenue has decreased by -6.95% in the last year.
RHI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.93% yearly.
EPS 1Y (TTM)-41.67%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-37.88%
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.98%
3.2 Future
The Earnings Per Share is expected to grow by 28.18% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
EPS Next 5Y28.18%
Revenue Next Year-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
Revenue Next 5Y8.52%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.67, the valuation of RHI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RHI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.86, RHI is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.53, which 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 69.51% of the companies in the same industry.
RHI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
RHI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RHI is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 14.26 |
4.3 Compensation for Growth
RHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 6.89%, which is a nice return.
Compared to an average industry Dividend Yield of 3.62, RHI pays a better dividend. On top of this RHI pays more dividend than 98.78% of the companies listed in the same industry.
RHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
5.2 History
On average, the dividend of RHI grows each year by 11.32%, which is quite nice.
RHI has paid a dividend for at least 10 years, which is a reliable track record.
RHI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.32%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
128.51% of the earnings are spent on dividend by RHI. This is not a sustainable payout ratio.
RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP128.51%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
34.43
+0.19 (+0.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change0.06%
Ins Owners1.92%
Ins Owner Change0.62%
Market Cap3.50B
Analysts50.53
Price Target44.37 (28.87%)
Short Float %12.84%
Short Ratio6.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.89% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP128.51%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.67%
Min EPS beat(2)-53.13%
Max EPS beat(2)1.79%
EPS beat(4)2
Avg EPS beat(4)-13.23%
Min EPS beat(4)-53.13%
Max EPS beat(4)2.73%
EPS beat(8)3
Avg EPS beat(8)-6.4%
EPS beat(12)3
Avg EPS beat(12)-5.99%
EPS beat(16)6
Avg EPS beat(16)-3.61%
Revenue beat(2)1
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)4
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)-4.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.4%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 15.53 | ||
| P/S | 0.63 | ||
| P/FCF | 12.3 | ||
| P/OCF | 10.17 | ||
| P/B | 2.67 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 14.26 |
EPS(TTM)1.75
EY5.08%
EPS(NY)2.22
Fwd EY6.44%
FCF(TTM)2.8
FCFY8.13%
OCF(TTM)3.39
OCFY9.83%
SpS54.74
BVpS12.89
TBVpS10.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 13.57% | ||
| ROCE | 10.96% | ||
| ROIC | 7.76% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 13.39% | ||
| OM | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% | ||
| FCFM | 5.11% |
ROA(3y)14.89%
ROA(5y)15.38%
ROE(3y)28.7%
ROE(5y)30.97%
ROIC(3y)22.98%
ROIC(5y)23.62%
ROICexc(3y)37.16%
ROICexc(5y)38.31%
ROICexgc(3y)48.04%
ROICexgc(5y)49.78%
ROCE(3y)32.44%
ROCE(5y)33.36%
ROICexcg growth 3Y-32.53%
ROICexcg growth 5Y-13.71%
ROICexc growth 3Y-32.51%
ROICexc growth 5Y-14.55%
OM growth 3Y-28.69%
OM growth 5Y-14.85%
PM growth 3Y-22.33%
PM growth 5Y-10.31%
GM growth 3Y-2.42%
GM growth 5Y-1.38%
F-Score5
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.46% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 157.27% | ||
| Profit Quality | 159.92% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 3.86 |
F-Score5
WACC8.77%
ROIC/WACC0.89
Cap/Depr(3y)104.95%
Cap/Depr(5y)86.94%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.75%
Profit Quality(3y)126.38%
Profit Quality(5y)131.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-41.67%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-37.88%
EPS Next Y-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.98%
Revenue Next Year-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
Revenue Next 5Y8.52%
EBIT growth 1Y-49.36%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year-22.06%
EBIT Next 3Y15.55%
EBIT Next 5Y25.83%
FCF growth 1Y-58.33%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-52.7%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%