HOULIHAN LOKEY INC (HLI) Stock Fundamental Analysis
NYSE:HLI - New York Stock Exchange, Inc. - US4415931009 - Common Stock - Currency: USD
Overall HLI gets a fundamental rating of 5 out of 10. We evaluated HLI against 222 industry peers in the Capital Markets industry. Both the profitability and the financial health of HLI get a neutral evaluation. Nothing too spectacular is happening here. HLI shows excellent growth, but is valued quite expensive already. This makes HLI very considerable for growth investing!
1. Profitability
1.1 Basic Checks
HLI had positive earnings in the past year.
HLI had a positive operating cash flow in the past year.
HLI had positive earnings in each of the past 5 years.
Each year in the past 5 years HLI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.41%, HLI belongs to the top of the industry, outperforming 88.02% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.09%, HLI belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
The Return On Invested Capital of HLI (16.26%) is better than 94.01% of its industry peers.
HLI had an Average Return On Invested Capital over the past 3 years of 20.04%. This is significantly above the industry average of 6.67%.
| 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
The Profit Margin of HLI (15.77%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HLI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 20.40%, HLI is in line with its industry, outperforming 41.94% of the companies in the same 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.
HLI has a worse debt/assets ratio than last year.
2.2 Solvency
HLI has an Altman-Z score of 7.65. This indicates that HLI is financially healthy and has little risk of bankruptcy at the moment.
HLI has a better Altman-Z score (7.65) than 93.09% 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 92.63% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that HLI is not too dependend on debt financing.
HLI has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. HLI outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 7.65 |
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 has a Current ratio (0.88) which is in line with 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
HLI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.70%, which is quite impressive.
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.
Looking at the last year, HLI shows a quite strong growth in Revenue. The Revenue has grown by 18.84% in the last year.
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
HLI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.94% yearly.
Based on estimates for the next years, HLI will show a quite strong growth in Revenue. The Revenue will grow by 12.75% on average per year.
EPS Next Y28.19%
EPS Next 2Y23.34%
EPS Next 3Y21.36%
EPS Next 5Y17.94%
Revenue Next Year20.52%
Revenue Next 2Y18.1%
Revenue Next 3Y15.56%
Revenue Next 5Y12.75%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.60 indicates a quite expensive valuation of HLI.
Based on the Price/Earnings ratio, HLI is valued a bit more expensive than the industry average as 74.19% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.42. HLI is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 26.95, HLI can be considered very expensive at the moment.
68.66% of the companies in the same industry are cheaper than HLI, based on the Price/Forward Earnings ratio.
HLI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 26.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLI is valued a bit cheaper than the industry average as 63.13% of the companies are valued more expensively.
HLI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.74 | ||
| EV/EBITDA | 25.86 |
4.3 Compensation for Growth
HLI's 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)1.26
PEG (5Y)3.83
EPS Next 2Y23.34%
EPS Next 3Y21.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, HLI has a reasonable but not impressive dividend return.
HLI's Dividend Yield is slightly below the industry average, which is at 9.43.
With a Dividend Yield of 1.22, HLI pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of HLI grows each year by 16.14%, which is quite nice.
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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP48.07%
EPS Next 2Y23.34%
EPS Next 3Y21.36%
HOULIHAN LOKEY INC
NYSE:HLI (1/28/2025, 8:04:00 PM)
After market: 186.35 +2.28 (+1.24%)184.07
+3.49 (+1.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change0.77%
Ins Owners0.13%
Ins Owner Change-1.29%
Market Cap12.91B
Analysts50
Price Target191.42 (3.99%)
Short Float %1.53%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend2.15
Dividend Growth(5Y)16.14%
DP48.07%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
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)6.93%
PT rev (3m)17.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.64%
EPS NY rev (1m)0%
EPS NY rev (3m)1.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.6 | ||
| Fwd PE | 26.95 | ||
| P/S | 6.09 | ||
| P/FCF | 25.74 | ||
| P/OCF | 23.44 | ||
| P/B | 6.6 | ||
| P/tB | 22.16 | ||
| EV/EBITDA | 25.86 |
EPS(TTM)5.17
EY2.81%
EPS(NY)6.83
Fwd EY3.71%
FCF(TTM)7.15
FCFY3.88%
OCF(TTM)7.85
OCFY4.27%
SpS30.22
BVpS27.89
TBVpS8.31
PEG (NY)1.26
PEG (5Y)3.83
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 | 7.65 |
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 5Y17.94%
Revenue 1Y (TTM)18.84%
Revenue growth 3Y7.86%
Revenue growth 5Y12.04%
Sales Q2Q%23.12%
Revenue Next Year20.52%
Revenue Next 2Y18.1%
Revenue Next 3Y15.56%
Revenue Next 5Y12.75%
EBIT growth 1Y27.81%
EBIT growth 3Y-3.85%
EBIT growth 5Y10.62%
EBIT Next Year37.24%
EBIT Next 3Y21.98%
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%