HOULIHAN LOKEY INC (HLI)
US4415931009 - Common Stock
Taking everything into account, HLI scores 6 out of 10 in our fundamental rating. HLI was compared to 220 industry peers in the Capital Markets industry. HLI has an average financial health and profitability rating. HLI shows excellent growth, but is valued quite expensive already. These ratings would make HLI suitable for growth investing!
1. Profitability
1.1 Basic Checks
HLI had positive earnings in the past year.
In the past year HLI had a positive cash flow from operations.
In the past 5 years HLI has always been profitable.
In the past 5 years HLI always reported a positive cash flow from operatings.
1.2 Ratios
HLI has a Return On Assets of 10.41%. This is amongst the best in the industry. HLI outperforms 87.10% of its industry peers.
Looking at the Return On Equity, with a value of 17.09%, HLI belongs to the top of the industry, outperforming 81.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.26%, HLI belongs to the top of the industry, outperforming 93.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HLI is significantly above the industry average of 6.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 17.09% | ||
| ROIC | 16.26% |
ROA(3y)10.86%
ROA(5y)11.28%
ROE(3y)20.45%
ROE(5y)20.52%
ROIC(3y)20.04%
ROIC(5y)19.66%
1.3 Margins
Looking at the Profit Margin, with a value of 15.77%, HLI is in line with its industry, outperforming 52.07% of the companies in the same industry.
HLI's Profit Margin has been stable in the last couple of years.
HLI has a Operating Margin (20.40%) which is comparable to the rest of the industry.
HLI's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.4% | ||
| PM (TTM) | 15.77% | ||
| GM | N/A |
OM growth 3Y-10.86%
OM growth 5Y-1.27%
PM growth 3Y-10.62%
PM growth 5Y-0.04%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for HLI has been increased compared to 1 year ago.
The number of shares outstanding for HLI has been increased compared to 5 years ago.
Compared to 1 year ago, HLI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.48 indicates that HLI is not in any danger for bankruptcy at the moment.
The Altman-Z score of HLI (7.48) is better than 93.55% of its industry peers.
HLI has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
HLI's Debt to FCF ratio of 0.03 is amongst the best of the industry. HLI outperforms 93.09% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that HLI is not too dependend on debt financing.
The Debt to Equity ratio of HLI (0.01) is better than 86.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 7.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.88 indicates that HLI may have some problems paying its short term obligations.
HLI's Current ratio of 0.88 is in line compared to the rest of the industry. HLI outperforms 40.55% of its industry peers.
A Quick Ratio of 0.88 indicates that HLI may have some problems paying its short term obligations.
HLI has a Quick ratio (0.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.70% over the past year.
Measured over the past years, HLI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.29% on average per year.
HLI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.84%.
Measured over the past years, HLI shows a quite strong growth in Revenue. The Revenue has been growing by 12.04% on average per year.
EPS 1Y (TTM)21.7%
EPS 3Y-0.73%
EPS 5Y9.29%
EPS Q2Q%31.53%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y7.86%
Revenue growth 5Y12.04%
Sales Q2Q%23.12%
3.2 Future
Based on estimates for the next years, HLI will show a very strong growth in Earnings Per Share. The EPS will grow by 21.36% on average per year.
The Revenue is expected to grow by 14.95% on average over the next years. This is quite good.
EPS Next Y28.19%
EPS Next 2Y23.34%
EPS Next 3Y21.36%
EPS Next 5YN/A
Revenue Next Year20%
Revenue Next 2Y17.51%
Revenue Next 3Y14.95%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.92, the valuation of HLI can be described as expensive.
Based on the Price/Earnings ratio, HLI is valued a bit more expensive than 74.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of HLI to the average of the S&P500 Index (27.54), we can say HLI is valued slightly more expensively.
The Price/Forward Earnings ratio is 25.68, which means the current valuation is very expensive for HLI.
Based on the Price/Forward Earnings ratio, HLI is valued a bit more expensive than the industry average as 68.66% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, HLI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.92 | ||
| Fwd PE | 25.68 |
4.2 Price Multiples
62.67% of the companies in the same industry are more expensive than HLI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.53 | ||
| EV/EBITDA | 25.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HLI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HLI's earnings are expected to grow with 21.36% in the coming years.
PEG (NY)1.2
PEG (5Y)3.65
EPS Next 2Y23.34%
EPS Next 3Y21.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, HLI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 9.57, HLI is paying slightly less dividend.
With a Dividend Yield of 1.32, HLI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of HLI is nicely growing with an annual growth rate of 16.14%!
HLI has been paying a dividend for at least 10 years, so it has a reliable track record.
As HLI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)16.14%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
48.07% of the earnings are spent on dividend by HLI. This is a bit on the high side, but may be sustainable.
The dividend of HLI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.07%
EPS Next 2Y23.34%
EPS Next 3Y21.36%
HOULIHAN LOKEY INC
NYSE:HLI (12/24/2024, 8:19:13 PM)
After market: 175.39 0 (0%)175.39
+1.47 (+0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change-1.1%
Ins Owners0.13%
Ins Owner Change-1.08%
Market Cap12.31B
Analysts51.25
Price Target179.01 (2.06%)
Short Float %1.09%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Dividend Growth(5Y)16.14%
DP48.07%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.22%
Min EPS beat(2)0.24%
Max EPS beat(2)10.19%
EPS beat(4)4
Avg EPS beat(4)4.65%
Min EPS beat(4)0.24%
Max EPS beat(4)10.19%
EPS beat(8)6
Avg EPS beat(8)3.49%
EPS beat(12)10
Avg EPS beat(12)8.06%
EPS beat(16)14
Avg EPS beat(16)15.94%
Revenue beat(2)1
Avg Revenue beat(2)2.9%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)5.83%
Revenue beat(4)3
Avg Revenue beat(4)2.42%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)5.83%
Revenue beat(8)5
Avg Revenue beat(8)0.59%
Revenue beat(12)9
Avg Revenue beat(12)4.55%
Revenue beat(16)12
Avg Revenue beat(16)11.28%
PT rev (1m)9.57%
PT rev (3m)15.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.64%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.92 | ||
| Fwd PE | 25.68 | ||
| P/S | 5.8 | ||
| P/FCF | 24.53 | ||
| P/OCF | 22.34 | ||
| P/B | 6.29 | ||
| P/tB | 21.12 | ||
| EV/EBITDA | 25.07 |
EPS(TTM)5.17
EY2.95%
EPS(NY)6.83
Fwd EY3.89%
FCF(TTM)7.15
FCFY4.08%
OCF(TTM)7.85
OCFY4.48%
SpS30.22
BVpS27.89
TBVpS8.31
PEG (NY)1.2
PEG (5Y)3.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.41% | ||
| ROE | 17.09% | ||
| ROCE | 21.65% | ||
| ROIC | 16.26% | ||
| ROICexc | 24.87% | ||
| ROICexgc | N/A | ||
| OM | 20.4% | ||
| PM (TTM) | 15.77% | ||
| GM | N/A | ||
| FCFM | 23.66% |
ROA(3y)10.86%
ROA(5y)11.28%
ROE(3y)20.45%
ROE(5y)20.52%
ROIC(3y)20.04%
ROIC(5y)19.66%
ROICexc(3y)39.11%
ROICexc(5y)39.19%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.67%
ROCE(5y)26.17%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-23.15%
ROICexc growth 5Y-1.65%
OM growth 3Y-10.86%
OM growth 5Y-1.27%
PM growth 3Y-10.62%
PM growth 5Y-0.04%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 157.5% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 462.09 | ||
| Cash Conversion | 118.79% | ||
| Profit Quality | 150.04% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 7.48 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)112.97%
Cap/Depr(5y)110.26%
Cap/Sales(3y)2.22%
Cap/Sales(5y)1.88%
Profit Quality(3y)97.77%
Profit Quality(5y)123.89%
High Growth Momentum
Growth
EPS 1Y (TTM)21.7%
EPS 3Y-0.73%
EPS 5Y9.29%
EPS Q2Q%31.53%
EPS Next Y28.19%
EPS Next 2Y23.34%
EPS Next 3Y21.36%
EPS Next 5YN/A
Revenue 1Y (TTM)18.84%
Revenue growth 3Y7.86%
Revenue growth 5Y12.04%
Sales Q2Q%23.12%
Revenue Next Year20%
Revenue Next 2Y17.51%
Revenue Next 3Y14.95%
Revenue Next 5YN/A
EBIT growth 1Y27.81%
EBIT growth 3Y-3.85%
EBIT growth 5Y10.62%
EBIT Next Year36.94%
EBIT Next 3Y21.22%
EBIT Next 5YN/A
FCF growth 1Y25.54%
FCF growth 3Y-22.66%
FCF growth 5Y3.76%
OCF growth 1Y30.04%
OCF growth 3Y-17.26%
OCF growth 5Y7.93%