ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - NYSE:RHI - US7703231032 - Common Stock
26.19 USD
-0.37 (-1.39%)
26.5 USD
+0.31 (+1.18%)
We assign a fundamental rating of 6 out of 10 to RHI. RHI was compared to 86 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 decent growth rate and is not valued too expensively. 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.
In the past 5 years RHI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.29%, RHI is in the better half of the industry, outperforming 66.28% of the companies in the same industry.
RHI has a better Return On Equity (13.57%) than 65.12% of its industry peers.
RHI has a Return On Invested Capital (7.76%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 13.22%.
The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(7.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 13.57% | ||
| ROIC | 7.76% |
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 3.20%, RHI is in line with its industry, outperforming 52.33% of the companies in the same industry.
In the last couple of years the Profit Margin of RHI has declined.
With a Operating Margin value of 2.97%, RHI perfoms like the industry average, outperforming 45.35% of the companies in the same industry.
In the last couple of years the Operating Margin of RHI has declined.
RHI's Gross Margin of 38.00% is in line compared to the rest of the industry. RHI outperforms 54.65% of 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 | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% |
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.
Compared to 1 year ago, RHI has less shares outstanding
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 3.55. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.55, RHI is in the better half of the industry, outperforming 67.44% 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 | 3.55 |
ROIC/WACC0.89
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.57 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a Current ratio of 1.57. This is comparable to the rest of the industry: RHI outperforms 56.98% of its industry peers.
RHI has a Quick Ratio of 1.57. 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 Quick ratio (1.57) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
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.
Looking at the last year, RHI shows a decrease in Revenue. The Revenue has decreased by -7.27% in the last year.
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)-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-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
EPS Next 5Y28.18%
Revenue Next Year-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
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
A Price/Earnings ratio of 17.01 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 66.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.10. RHI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.82, which indicates a very decent valuation of RHI.
RHI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RHI is cheaper than 72.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, RHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 11.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHI is valued a bit cheaper than 73.26% of the companies in the same industry.
84.88% of the companies in the same industry are more expensive than RHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
The decent profitability rating of RHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.60%, RHI is a good candidate for dividend investing.
In the last 3 months the price of RHI has falen by -25.89%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RHI's Dividend Yield is rather good when compared to the industry average which is at 3.98. RHI pays more dividend than 98.84% of the companies in the same industry.
RHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
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
128.51% 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.
DP128.51%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
26.19
-0.37 (-1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change0.63%
Ins Owners1.92%
Ins Owner Change0.62%
Market Cap2.66B
Revenue(TTM)5.46B
Net Income(TTM)178.06M
Analysts50.53
Price Target36.04 (37.61%)
Short Float %12.39%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.6% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP128.51%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.67%
Min EPS beat(2)-53.13%
Max EPS beat(2)1.79%
EPS beat(4)2
Avg EPS beat(4)-13.23%
Min EPS beat(4)-53.13%
Max EPS beat(4)2.73%
EPS beat(8)3
Avg EPS beat(8)-6.4%
EPS beat(12)3
Avg EPS beat(12)-5.99%
EPS beat(16)6
Avg EPS beat(16)-3.61%
Revenue beat(2)1
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)4
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)-4.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.01 | ||
| Fwd PE | 11.82 | ||
| P/S | 0.48 | ||
| P/FCF | 9.36 | ||
| P/OCF | 7.74 | ||
| P/B | 2.03 | ||
| P/tB | 2.52 | ||
| EV/EBITDA | 10.6 |
EPS(TTM)1.54
EY5.88%
EPS(NY)2.22
Fwd EY8.46%
FCF(TTM)2.8
FCFY10.69%
OCF(TTM)3.39
OCFY12.93%
SpS54.74
BVpS12.89
TBVpS10.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 13.57% | ||
| ROCE | 10.96% | ||
| ROIC | 7.76% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 13.39% | ||
| OM | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% | ||
| FCFM | 5.11% |
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%
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 Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.46% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 157.27% | ||
| Profit Quality | 159.92% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 3.55 |
F-Score5
WACC8.75%
ROIC/WACC0.89
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-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
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-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
Revenue Next 5Y8.52%
EBIT growth 1Y-49.36%
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-58.33%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-52.7%
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 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.
Can you provide the PE and PB ratios for RHI stock?
The Price/Earnings (PE) ratio for ROBERT HALF INC (RHI) is 17.01 and the Price/Book (PB) ratio is 2.03.
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 -39.73% in the next year.