ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
27.27 USD
+1.52 (+5.9%)
27.27 USD
0 (0%)
Taking everything into account, RHI scores 6 out of 10 in our fundamental rating. RHI was compared to 87 industry peers in the Professional Services industry. While RHI has a great health rating, its profitability is only average at the moment. RHI has a decent growth rate and is not valued too expensively. Finally RHI also has an excellent dividend rating. With these ratings, RHI could be worth investigating further 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.
Each year in the past 5 years RHI has been profitable.
Each year in the past 5 years RHI had a positive operating cash flow.
1.2 Ratios
RHI's Return On Assets of 5.46% is in line compared to the rest of the industry. RHI outperforms 59.77% of its industry peers.
RHI has a Return On Equity (12.09%) which is in line with its industry peers.
The Return On Invested Capital of RHI (5.66%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is in line with the industry average of 22.56%.
The last Return On Invested Capital (5.66%) 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 | 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
RHI has a Profit Margin (2.85%) which is comparable to the rest of the industry.
RHI's Profit Margin has declined in the last couple of years.
RHI's Operating Margin of 2.17% is in line compared to the rest of the industry. RHI outperforms 43.68% of its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
With a Gross Margin value of 37.53%, RHI perfoms like the industry average, outperforming 50.57% of the companies in the same 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RHI is creating value.
The number of shares outstanding for RHI has been reduced compared to 1 year ago.
Compared to 5 years ago, RHI has less shares outstanding
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 3.44 indicates that RHI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.44, RHI is in the better half of the industry, outperforming 67.82% 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 | 3.44 |
ROIC/WACC0.65
WACC8.7%
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 52.87% of its industry peers.
RHI has a Quick 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.
The Quick ratio of RHI (1.55) is comparable to the rest of the 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%.
The Earnings Per Share has been decreasing by -8.95% on average over the past years.
The Revenue has decreased by -7.27% in the past year.
RHI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.93% yearly.
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.
Based on estimates for the next years, RHI will show a quite strong growth in Revenue. The Revenue will grow by 8.52% on average per year.
EPS Next Y-44.41%
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
EPS Next 5Y28.18%
Revenue Next Year-7.41%
Revenue Next 2Y-3.34%
Revenue Next 3Y0.32%
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
The Price/Earnings ratio is 17.71, which indicates a rather expensive current valuation of RHI.
Based on the Price/Earnings ratio, RHI is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
RHI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 14.67, RHI is valued correctly.
64.37% 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 rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 62.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHI indicates a rather cheap valuation: RHI is cheaper than 81.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.73 | ||
| EV/EBITDA | 14.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.17%, RHI is a good candidate for dividend investing.
The stock price of RHI dropped by -28.12% 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 4.41, RHI pays a better dividend. On top of this RHI pays more dividend than 97.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
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
RHI pays out 150.26% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP150.26%
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
27.27
+1.52 (+5.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change-77.6%
Ins Owners1.92%
Ins Owner Change-0.1%
Market Cap2.77B
Revenue(TTM)5.46B
Net Income(TTM)155.52M
Analysts50.53
Price Target35.81 (31.32%)
Short Float %10.88%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP150.26%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.48%
Min EPS beat(2)-0.84%
Max EPS beat(2)1.79%
EPS beat(4)1
Avg EPS beat(4)-14.12%
Min EPS beat(4)-53.13%
Max EPS beat(4)1.79%
EPS beat(8)2
Avg EPS beat(8)-7.81%
EPS beat(12)3
Avg EPS beat(12)-5.47%
EPS beat(16)5
Avg EPS beat(16)-4.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.52%
PT rev (1m)-19.28%
PT rev (3m)-19.28%
EPS NQ rev (1m)-30.45%
EPS NQ rev (3m)-30.45%
EPS NY rev (1m)-7.76%
EPS NY rev (3m)-7.76%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 14.67 | ||
| P/S | 0.51 | ||
| P/FCF | 11.73 | ||
| P/OCF | 9.49 | ||
| P/B | 2.16 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 14.06 |
EPS(TTM)1.54
EY5.65%
EPS(NY)1.86
Fwd EY6.82%
FCF(TTM)2.33
FCFY8.53%
OCF(TTM)2.87
OCFY10.53%
SpS53.65
BVpS12.64
TBVpS10.15
PEG (NY)N/A
PEG (5Y)N/A
Graham Number20.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 12.09% | ||
| ROCE | 8% | ||
| ROIC | 5.66% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 9.73% | ||
| OM | 2.17% | ||
| PM (TTM) | 2.85% | ||
| GM | 37.53% | ||
| FCFM | 4.33% |
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%
ROICexgc growth 3Y-32.53%
ROICexgc 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 Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.35% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 170.55% | ||
| Profit Quality | 152.1% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 3.44 |
F-Score5
WACC8.7%
ROIC/WACC0.65
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)-43.8%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-32.81%
EPS Next Y-44.41%
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-7.54%
Revenue Next Year-7.41%
Revenue Next 2Y-3.34%
Revenue Next 3Y0.32%
Revenue Next 5Y8.52%
EBIT growth 1Y-51.4%
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-65.1%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-59.66%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%
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.
Can you provide the valuation status for ROBERT HALF INC?
ChartMill assigns a valuation rating of 4 / 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 5 / 10.
Can you provide the PE and PB ratios for RHI stock?
The Price/Earnings (PE) ratio for ROBERT HALF INC (RHI) is 17.71 and the Price/Book (PB) ratio is 2.16.
What is the expected EPS growth for ROBERT HALF INC (RHI) stock?
The Earnings per Share (EPS) of ROBERT HALF INC (RHI) is expected to decline by -44.41% in the next year.