ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
28.82 USD
+0.16 (+0.56%)
Overall RHI gets a fundamental rating of 6 out of 10. We evaluated RHI against 88 industry peers in the Professional Services industry. RHI has an excellent financial health rating, but there are some minor concerns on its profitability. RHI has a correct valuation and a medium growth rate. RHI also has an excellent dividend rating. This makes RHI very considerable 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
- RHI's Return On Assets of 5.46% is fine compared to the rest of the industry. RHI outperforms 61.36% of its industry peers.
- RHI has a better Return On Equity (12.09%) than 60.23% of its industry peers.
- RHI has a Return On Invested Capital (5.66%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for RHI is significantly above the industry average of 11.85%.
- The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(5.66%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 12.09% | ||
| ROIC | 5.66% |
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
- Looking at the Profit Margin, with a value of 2.85%, RHI is in line with its industry, outperforming 53.41% of the companies in the same industry.
- RHI's Profit Margin has declined in the last couple of years.
- RHI has a Operating Margin (2.17%) which is comparable to the rest of the industry.
- RHI's Operating Margin has declined in the last couple of years.
- RHI has a Gross Margin (37.53%) which is in line with its industry peers.
- 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 | 2.17% | ||
| PM (TTM) | 2.85% | ||
| GM | 37.53% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHI is creating value.
- The number of shares outstanding for RHI has been reduced compared to 1 year ago.
- RHI has less shares outstanding than it did 5 years ago.
- There is no outstanding debt for RHI. 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
- RHI has an Altman-Z score of 3.49. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
- RHI has a better Altman-Z score (3.49) than 67.05% of its industry peers.
- There is no outstanding debt for RHI. 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 | 3.49 |
ROIC/WACC0.64
WACC8.9%
2.3 Liquidity
- RHI has a Current Ratio of 1.55. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
- RHI has a Current ratio of 1.55. This is comparable to the rest of the industry: RHI outperforms 54.55% of its industry peers.
- A Quick Ratio of 1.55 indicates that RHI should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.55, RHI is in line with its industry, outperforming 55.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.80%.
- RHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.95% yearly.
- RHI shows a decrease in Revenue. In the last year, the revenue decreased by -7.27%.
- The Revenue has been decreasing by -0.93% on average over the past years.
EPS 1Y (TTM)-43.8%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-32.81%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-7.54%
3.2 Future
- Based on estimates for the next years, RHI will show a very strong growth in Earnings Per Share. The EPS will grow by 28.18% on average per year.
- The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y-45.06%
EPS Next 2Y-15.51%
EPS Next 3Y2.27%
EPS Next 5Y28.18%
Revenue Next Year-7.48%
Revenue Next 2Y-3.45%
Revenue Next 3Y0.01%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 18.71 indicates a rather expensive valuation of RHI.
- RHI's Price/Earnings ratio is a bit cheaper when compared to the industry. RHI is cheaper than 65.91% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. RHI is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 16.55, RHI is valued correctly.
- 65.91% of the companies in the same industry are more expensive than RHI, based on the Price/Forward Earnings ratio.
- RHI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
- RHI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RHI is cheaper than 62.50% of the companies in the same industry.
- RHI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RHI is cheaper than 82.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.33 | ||
| EV/EBITDA | 14.79 |
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-15.51%
EPS Next 3Y2.27%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.13%, RHI is a good candidate for dividend investing.
- RHI's Dividend Yield is rather good when compared to the industry average which is at 1.41. RHI pays more dividend than 96.59% of the companies in the same industry.
- RHI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.13% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.32%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
- 150.26% 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.
DP150.26%
EPS Next 2Y-15.51%
EPS Next 3Y2.27%
ROBERT HALF INC / RHI FAQ
What is the ChartMill fundamental rating of ROBERT HALF INC (RHI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RHI.
What is the valuation status for RHI stock?
ChartMill assigns a valuation rating of 5 / 10 to ROBERT HALF INC (RHI). This can be considered as Fairly Valued.
What is the profitability of RHI stock?
ROBERT HALF INC (RHI) has a profitability rating of 6 / 10.
What is the earnings growth outlook for ROBERT HALF INC?
The Earnings per Share (EPS) of ROBERT HALF INC (RHI) is expected to decline by -45.06% in the next year.
Can you provide the dividend sustainability for RHI stock?
The dividend rating of ROBERT HALF INC (RHI) is 8 / 10 and the dividend payout ratio is 150.26%.