ROBERT HALF INC (RHI)

US7703231032 - Common Stock

63.62  +0.87 (+1.39%)

After market: 63.62 0 (0%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to RHI. RHI was compared to 80 industry peers in the Professional Services industry. RHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RHI has a decent growth rate and is not valued too expensively. Finally RHI also has an excellent dividend rating. These ratings would make RHI suitable for dividend investing!



7

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.
Each year in the past 5 years RHI had a positive operating cash flow.

1.2 Ratios

RHI has a Return On Assets of 12.21%. This is amongst the best in the industry. RHI outperforms 87.50% of its industry peers.
With a decent Return On Equity value of 23.22%, RHI is doing good in the industry, outperforming 78.75% of the companies in the same industry.
RHI's Return On Invested Capital of 15.59% is fine compared to the rest of the industry. RHI outperforms 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RHI is significantly above the industry average of 12.80%.
The 3 year average ROIC (30.99%) for RHI is well above the current ROIC(15.59%). The reason for the recent decline needs to be investigated.
Industry RankSector 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 has a Profit Margin of 5.74%. This is in the better half of the industry: RHI outperforms 71.25% of its industry peers.
RHI's Profit Margin has declined in the last couple of years.
RHI's Operating Margin of 5.99% is in line compared to the rest of the industry. RHI outperforms 52.50% of its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
RHI has a Gross Margin (39.79%) which is in line with its industry peers.
RHI's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

9

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.
Compared to 5 years ago, RHI has less shares outstanding
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 5.94. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
RHI has a Altman-Z score of 5.94. This is amongst the best in the industry. RHI outperforms 86.25% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.94
ROIC/WACC1.76
WACC8.84%

2.3 Liquidity

A Current Ratio of 1.85 indicates that RHI should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.85, RHI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.85 indicates that RHI should not have too much problems paying its short term obligations.
RHI's Quick ratio of 1.85 is fine compared to the rest of the industry. RHI outperforms 70.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.85
Quick Ratio 1.85

4

3. Growth

3.1 Past

The earnings per share for RHI have decreased strongly by -40.78% in the last year.
The Earnings Per Share has been growing slightly by 1.51% on average over the past years.
The Revenue for RHI has decreased by -13.83% in the past year. This is quite bad
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 Q2Q%-46.49%
Revenue 1Y (TTM)-13.83%
Revenue growth 3Y7.76%
Revenue growth 5Y1.96%
Sales 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-22.8%
EPS Next 2Y1.69%
EPS Next 3Y9.3%
EPS Next 5Y15.6%
Revenue Next Year-6.02%
Revenue Next 2Y0.54%
Revenue Next 3Y2.11%
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.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.05 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 61.25% of the companies in the same industry.
RHI is valuated rather cheaply when we compare the Price/Earnings ratio to 29.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.90, the valuation of RHI can be described as correct.
Based on the Price/Forward Earnings ratio, RHI is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RHI to the average of the S&P500 Index (20.65), we can say RHI is valued slightly cheaper.
Industry RankSector Rank
PE 19.05
Fwd PE 15.9

4.2 Price Multiples

RHI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RHI is cheaper than 63.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RHI is valued a bit cheaper than the industry average as 78.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.16
EV/EBITDA 14.29

4.3 Compensation for Growth

The decent profitability rating of RHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)12.59
EPS Next 2Y1.69%
EPS Next 3Y9.3%

8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.33%, 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 2.07. RHI pays more dividend than 93.75% of the companies in the same industry.
RHI's Dividend Yield is a higher than the S&P500 average which is at 2.38.
Industry RankSector Rank
Dividend Yield 3.33%

5.2 History

The dividend of RHI is nicely growing with an annual growth rate of 11.53%!
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)11.53%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

59.43% of the earnings are spent on dividend by RHI. 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 2Y1.69%
EPS Next 3Y9.3%

ROBERT HALF INC

NYSE:RHI (7/12/2024, 7:04:00 PM)

After market: 63.62 0 (0%)

63.62

+0.87 (+1.39%)

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 Cap6.68B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.33%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 19.05
Fwd PE 15.9
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)12.59
Profitability
Industry RankSector 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 RankSector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-40.78%
EPS 3Y12.61%
EPS 5Y
EPS Q2Q%
EPS Next Y-22.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.83%
Revenue growth 3Y7.76%
Revenue growth 5Y
Sales 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