ROBERT HALF INC (RHI) Stock Fundamental Analysis
NYSE:RHI - New York Stock Exchange, Inc. - US7703231032 - Common Stock - Currency: USD
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 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
In the past year RHI was profitable.
In the past year RHI had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 7.61%, RHI is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
RHI's Return On Equity of 15.63% is fine compared to the rest of the industry. RHI outperforms 62.20% of its industry peers.
With a decent Return On Invested Capital value of 11.26%, RHI is doing good in the industry, outperforming 70.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 12.61%.
The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(11.26%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 15.63% | ||
| ROIC | 11.26% |
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
With a Profit Margin value of 3.62%, RHI perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Profit Margin of RHI has declined.
RHI has a Operating Margin (4.22%) which is in line with its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
RHI has a Gross Margin (38.50%) which is in line with its industry peers.
RHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.22% | ||
| PM (TTM) | 3.62% | ||
| GM | 38.5% |
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.
RHI has less shares outstanding than it did 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 4.69 indicates that RHI is not in any danger for bankruptcy at the moment.
The Altman-Z score of RHI (4.69) is better than 81.71% 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 | 4.69 |
ROIC/WACC1.24
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.65 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a better Current ratio (1.65) than 64.63% of its industry peers.
RHI has a Quick Ratio of 1.65. 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 (1.65) is better than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The earnings per share for RHI have decreased strongly by -40.12% in the last year.
RHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.95% yearly.
Looking at the last year, RHI shows a decrease in Revenue. The Revenue has decreased by -7.81% in the last year.
The Revenue has been decreasing by -0.93% on average over the past years.
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
The Earnings Per Share is expected to grow by 28.18% on average over the next years. This is a very strong growth
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-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 22.00, the valuation of RHI can be described as rather expensive.
RHI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.55. RHI is around the same levels.
A Price/Forward Earnings ratio of 16.26 indicates a correct valuation of RHI.
60.98% 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 22.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RHI.
Based on the Price/Free Cash Flow ratio, RHI is valued a bit cheaper than 69.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.5 | ||
| EV/EBITDA | 14.19 |
4.3 Compensation for Growth
RHI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RHI's earnings are expected to grow with 18.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.3%
EPS Next 3Y18.48%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 5.42%, which is a nice return.
Compared to an average industry Dividend Yield of 2.12, RHI pays a better dividend. On top of this RHI pays more dividend than 97.56% 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
The dividend of RHI is nicely growing with an annual growth rate of 11.32%!
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
RHI pays out 109.23% of its income as dividend. This is not a sustainable payout ratio.
RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP109.23%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
44
-0.76 (-1.7%)
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 Change3.55%
Market Cap4.50B
Analysts53
Price Target50.55 (14.89%)
Short Float %11.55%
Short Ratio7.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP109.23%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.72%
Min EPS beat(2)-53.13%
Max EPS beat(2)-4.32%
EPS beat(4)1
Avg EPS beat(4)-15.52%
Min EPS beat(4)-53.13%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-8.24%
EPS beat(12)2
Avg EPS beat(12)-6.16%
EPS beat(16)6
Avg EPS beat(16)-2.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)1
Avg Revenue beat(12)-2.13%
Revenue beat(16)4
Avg Revenue beat(16)-0.86%
PT rev (1m)-15.77%
PT rev (3m)-29.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.71%
EPS NY rev (1m)-29.99%
EPS NY rev (3m)-32.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 16.26 | ||
| P/S | 0.79 | ||
| P/FCF | 14.5 | ||
| P/OCF | 12.25 | ||
| P/B | 3.42 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 14.19 |
EPS(TTM)2
EY4.55%
EPS(NY)2.71
Fwd EY6.15%
FCF(TTM)3.04
FCFY6.9%
OCF(TTM)3.59
OCFY8.17%
SpS55.52
BVpS12.85
TBVpS10.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 15.63% | ||
| ROCE | 15.89% | ||
| ROIC | 11.26% | ||
| ROICexc | 14.57% | ||
| ROICexgc | 18.32% | ||
| OM | 4.22% | ||
| PM (TTM) | 3.62% | ||
| GM | 38.5% | ||
| FCFM | 5.47% |
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 Turnover2.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 106.87% | ||
| Cap/Sales | 1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 125.39% | ||
| Profit Quality | 151.09% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 4.69 |
F-Score5
WACC9.11%
ROIC/WACC1.24
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-35.05%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year-11.31%
EBIT Next 3Y20.98%
EBIT Next 5Y25.83%
FCF growth 1Y-50.35%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-46.03%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%