HOULIHAN LOKEY INC (HLI) Stock Fundamental Analysis
NYSE:HLI - New York Stock Exchange, Inc. - US4415931009 - Common Stock - Currency: USD
Taking everything into account, HLI scores 6 out of 10 in our fundamental rating. HLI was compared to 227 industry peers in the Capital Markets industry. HLI has an average financial health and profitability rating. HLI is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make HLI suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year HLI was profitable.
HLI had a positive operating cash flow in the past year.
HLI had positive earnings in each of the past 5 years.
HLI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.32%, HLI belongs to the best of the industry, outperforming 88.11% of the companies in the same industry.
With an excellent Return On Equity value of 17.25%, HLI belongs to the best of the industry, outperforming 81.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.91%, HLI belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
HLI had an Average Return On Invested Capital over the past 3 years of 20.04%. This is significantly above the industry average of 7.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 17.25% | ||
| ROIC | 16.91% |
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
The Profit Margin of HLI (16.00%) is comparable to the rest of the industry.
HLI's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 21.61%, HLI perfoms like the industry average, outperforming 43.61% of the companies in the same industry.
In the last couple of years the Operating Margin of HLI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.61% | ||
| PM (TTM) | 16% | ||
| 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.
HLI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HLI has a worse debt to assets ratio.
2.2 Solvency
HLI has an Altman-Z score of 6.21. This indicates that HLI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.21, HLI belongs to the top of the industry, outperforming 90.31% of the companies in the same industry.
The Debt to FCF ratio of HLI is 0.02, which is an excellent value as it means it would take HLI, only 0.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.02, HLI belongs to the top of the industry, outperforming 92.51% of the companies in the same industry.
HLI has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HLI (0.01) is better than 85.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.21 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
HLI has a Current Ratio of 0.88. This is a bad value and indicates that HLI is not financially healthy enough and could expect problems in meeting its short term obligations.
HLI has a Current ratio of 0.88. This is comparable to the rest of the industry: HLI outperforms 42.29% of its industry peers.
HLI has a Quick Ratio of 0.88. This is a bad value and indicates that HLI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, HLI is in line with its industry, outperforming 42.29% of the companies in the same industry.
| 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 29.16% over the past year.
The Earnings Per Share has been growing by 9.29% on average over the past years. This is quite good.
HLI shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.01%.
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)29.16%
EPS 3Y-0.73%
EPS 5Y9.29%
EPS Q2Q%34.43%
Revenue 1Y (TTM)22.01%
Revenue growth 3Y7.86%
Revenue growth 5Y12.04%
Sales Q2Q%24.12%
3.2 Future
Based on estimates for the next years, HLI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.11% on average per year.
HLI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.25% yearly.
EPS Next Y33.64%
EPS Next 2Y23.33%
EPS Next 3Y20.29%
EPS Next 5Y18.11%
Revenue Next Year23.43%
Revenue Next 2Y17.46%
Revenue Next 3Y14.78%
Revenue Next 5Y13.25%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
HLI is valuated quite expensively with a Price/Earnings ratio of 26.87.
HLI's Price/Earnings ratio is a bit more expensive when compared to the industry. HLI is more expensive than 70.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. HLI is around the same levels.
A Price/Forward Earnings ratio of 21.99 indicates a rather expensive valuation of HLI.
Based on the Price/Forward Earnings ratio, HLI is valued a bit more expensive than the industry average as 63.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, HLI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 21.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLI is valued a bit cheaper than the industry average as 72.69% of the companies are valued more expensively.
62.56% of the companies in the same industry are more expensive than HLI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.54 | ||
| EV/EBITDA | 19.2 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 20.29% in the coming years.
PEG (NY)0.8
PEG (5Y)2.89
EPS Next 2Y23.33%
EPS Next 3Y20.29%
5. Dividend
5.1 Amount
HLI has a Yearly Dividend Yield of 1.49%.
HLI's Dividend Yield is slightly below the industry average, which is at 8.41.
With a Dividend Yield of 1.49, HLI pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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
45.21% of the earnings are spent on dividend by HLI. This is a bit on the high side, but may be sustainable.
HLI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.21%
EPS Next 2Y23.33%
EPS Next 3Y20.29%
150.2
-3.08 (-2.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners103.38%
Inst Owner Change1.47%
Ins Owners0.13%
Ins Owner Change-1.3%
Market Cap10.54B
Analysts69.23
Price Target195.84 (30.39%)
Short Float %1.44%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend2.15
Dividend Growth(5Y)16.14%
DP45.21%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.74%
Min EPS beat(2)7.29%
Max EPS beat(2)10.19%
EPS beat(4)4
Avg EPS beat(4)5.09%
Min EPS beat(4)0.24%
Max EPS beat(4)10.19%
EPS beat(8)7
Avg EPS beat(8)4.66%
EPS beat(12)10
Avg EPS beat(12)6.05%
EPS beat(16)14
Avg EPS beat(16)11.68%
Revenue beat(2)2
Avg Revenue beat(2)5.07%
Min Revenue beat(2)4.31%
Max Revenue beat(2)5.83%
Revenue beat(4)3
Avg Revenue beat(4)2.84%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)5.83%
Revenue beat(8)6
Avg Revenue beat(8)1.84%
Revenue beat(12)9
Avg Revenue beat(12)2.21%
Revenue beat(16)12
Avg Revenue beat(16)8.16%
PT rev (1m)-1.79%
PT rev (3m)2.31%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)3.32%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)4.25%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)3.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 21.99 | ||
| P/S | 4.7 | ||
| P/FCF | 15.54 | ||
| P/OCF | 14.72 | ||
| P/B | 5.06 | ||
| P/tB | 18.22 | ||
| EV/EBITDA | 19.2 |
EPS(TTM)5.59
EY3.72%
EPS(NY)6.83
Fwd EY4.55%
FCF(TTM)9.67
FCFY6.44%
OCF(TTM)10.2
OCFY6.79%
SpS31.99
BVpS29.66
TBVpS8.24
PEG (NY)0.8
PEG (5Y)2.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 17.25% | ||
| ROCE | 22.51% | ||
| ROIC | 16.91% | ||
| ROICexc | 26.88% | ||
| ROICexgc | N/A | ||
| OM | 21.61% | ||
| PM (TTM) | 16% | ||
| GM | N/A | ||
| FCFM | 30.23% |
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-Score9
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0.03 | ||
| Cap/Depr | 109.73% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 354.44 | ||
| Cash Conversion | 137.87% | ||
| Profit Quality | 188.95% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.21 |
F-Score9
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)29.16%
EPS 3Y-0.73%
EPS 5Y9.29%
EPS Q2Q%34.43%
EPS Next Y33.64%
EPS Next 2Y23.33%
EPS Next 3Y20.29%
EPS Next 5Y18.11%
Revenue 1Y (TTM)22.01%
Revenue growth 3Y7.86%
Revenue growth 5Y12.04%
Sales Q2Q%24.12%
Revenue Next Year23.43%
Revenue Next 2Y17.46%
Revenue Next 3Y14.78%
Revenue Next 5Y13.25%
EBIT growth 1Y38.24%
EBIT growth 3Y-3.85%
EBIT growth 5Y10.62%
EBIT Next Year45.75%
EBIT Next 3Y23.71%
EBIT Next 5YN/A
FCF growth 1Y1067.32%
FCF growth 3Y-22.66%
FCF growth 5Y3.76%
OCF growth 1Y2013.2%
OCF growth 3Y-17.26%
OCF growth 5Y7.93%