ROBERT HALF INC (RHI) Stock Fundamental Analysis
NYSE:RHI - New York Stock Exchange, Inc. - US7703231032 - Common Stock - Currency: USD
Overall RHI gets a fundamental rating of 6 out of 10. We evaluated RHI against 82 industry peers in the Professional Services industry. While RHI has a great health rating, its profitability is only average at the moment. RHI is not valued too expensively and it also shows a decent growth rate. RHI also has an excellent dividend rating. These ratings would make RHI suitable for dividend investing!
1. Profitability
1.1 Basic Checks
RHI had positive earnings in the past year.
RHI had a positive operating cash flow in the past year.
In the past 5 years RHI has always been profitable.
Each year in the past 5 years RHI had a positive operating cash flow.
1.2 Ratios
RHI has a better Return On Assets (8.81%) than 78.05% of its industry peers.
RHI has a Return On Equity of 18.26%. This is in the better half of the industry: RHI outperforms 65.85% of its industry peers.
The Return On Invested Capital of RHI (10.90%) is better than 68.29% of its industry peers.
RHI had an Average Return On Invested Capital over the past 3 years of 22.98%. This is significantly above the industry average of 12.98%.
The last Return On Invested Capital (10.90%) for RHI is well below the 3 year average (22.98%), which needs to be investigated, but indicates that RHI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.81% | ||
| ROE | 18.26% | ||
| ROIC | 10.9% |
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 (4.34%) which is in line with its industry peers.
RHI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.17%, RHI is in line with its industry, outperforming 45.12% of the companies in the same industry.
In the last couple of years the Operating Margin of RHI has declined.
RHI has a Gross Margin (38.77%) 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 | 4.17% | ||
| PM (TTM) | 4.34% | ||
| GM | 38.77% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RHI is creating value.
Compared to 1 year ago, RHI has less shares outstanding
The number of shares outstanding for RHI has been reduced compared to 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
An Altman-Z score of 4.64 indicates that RHI is not in any danger for bankruptcy at the moment.
RHI's Altman-Z score of 4.64 is amongst the best of the industry. RHI outperforms 80.49% of its industry peers.
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 | 4.64 |
ROIC/WACC1.2
WACC9.12%
2.3 Liquidity
RHI has a Current Ratio of 1.66. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.66, RHI is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
RHI has a Quick Ratio of 1.66. 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 better Quick ratio (1.66) than 67.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.12%.
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.
RHI shows a decrease in Revenue. In the last year, the revenue decreased by -7.81%.
Measured over the past years, RHI shows a decrease in Revenue. The Revenue has been decreasing by -0.93% on average per year.
EPS 1Y (TTM)-40.12%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-72.13%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-8.4%
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.
RHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.52% yearly.
EPS Next Y-28.76%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
EPS Next 5Y28.18%
Revenue Next Year-6.3%
Revenue Next 2Y-0.63%
Revenue Next 3Y2.52%
Revenue Next 5Y8.52%
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
Based on the Price/Earnings ratio of 22.79, the valuation of RHI can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as RHI.
Compared to an average S&P500 Price/Earnings ratio of 26.03, RHI is valued at the same level.
With a Price/Forward Earnings ratio of 16.85, RHI is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as RHI.
RHI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 16.85 |
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 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.13 | ||
| EV/EBITDA | 14.55 |
4.3 Compensation for Growth
The decent profitability rating of RHI may justify a higher PE ratio.
RHI's earnings are expected to grow with 18.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.3%
EPS Next 3Y18.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.00%, RHI is a good candidate for dividend investing.
The stock price of RHI dropped by -24.03% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.98, RHI pays a better dividend. On top of this RHI pays more dividend than 97.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
5.2 History
On average, the dividend of RHI grows each year by 11.32%, which is quite nice.
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)11.32%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
87.60% of the earnings are spent on dividend by RHI. This is not a sustainable payout ratio.
The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP87.6%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
45.58
-1.74 (-3.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.2%
Inst Owner Change-1.63%
Ins Owners1.74%
Ins Owner Change3.32%
Market Cap4.65B
Analysts54
Price Target50.43 (10.64%)
Short Float %10.88%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP87.6%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.8%
Min EPS beat(2)-4.32%
Max EPS beat(2)2.73%
EPS beat(4)1
Avg EPS beat(4)-2.54%
Min EPS beat(4)-7.38%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-1.63%
EPS beat(12)3
Avg EPS beat(12)-1.48%
EPS beat(16)7
Avg EPS beat(16)2.64%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.36%
Revenue beat(12)1
Avg Revenue beat(12)-1.75%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)-28.4%
PT rev (3m)-29.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)-29.99%
EPS NY rev (3m)-33.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-7.72%
Revenue NY rev (3m)-7.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.79 | ||
| Fwd PE | 16.85 | ||
| P/S | 0.8 | ||
| P/FCF | 13.13 | ||
| P/OCF | 11.33 | ||
| P/B | 3.37 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 14.55 |
EPS(TTM)2
EY4.39%
EPS(NY)2.71
Fwd EY5.94%
FCF(TTM)3.47
FCFY7.62%
OCF(TTM)4.02
OCFY8.83%
SpS56.82
BVpS13.51
TBVpS11.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.81% | ||
| ROE | 18.26% | ||
| ROCE | 15.39% | ||
| ROIC | 10.9% | ||
| ROICexc | 16.59% | ||
| ROICexgc | 21.58% | ||
| OM | 4.17% | ||
| PM (TTM) | 4.34% | ||
| GM | 38.77% | ||
| FCFM | 6.11% |
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 Turnover2.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.72% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 887.77 | ||
| Cash Conversion | 139.26% | ||
| Profit Quality | 140.76% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 4.64 |
F-Score5
WACC9.12%
ROIC/WACC1.2
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)-40.12%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-72.13%
EPS Next Y-28.76%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-8.4%
Revenue Next Year-6.3%
Revenue Next 2Y-0.63%
Revenue Next 3Y2.52%
Revenue Next 5Y8.52%
EBIT growth 1Y-48.02%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year21.28%
EBIT Next 3Y29.76%
EBIT Next 5Y25.83%
FCF growth 1Y-40.08%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-35.55%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%