HIREQUEST INC (HQI)
US4335351015 - Common Stock
Taking everything into account, HQI scores 5 out of 10 in our fundamental rating. HQI was compared to 79 industry peers in the Professional Services industry. HQI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HQI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HQI was profitable.
In the past year HQI had a positive cash flow from operations.
Of the past 5 years HQI 4 years were profitable.
Each year in the past 5 years HQI had a positive operating cash flow.
1.2 Ratios
HQI has a worse Return On Assets (1.43%) than 60.53% of its industry peers.
The Return On Equity of HQI (2.33%) is worse than 61.84% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.15%, HQI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HQI is below the industry average of 18.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 2.33% | ||
| ROIC | 13.15% |
ROA(3y)11.09%
ROA(5y)8.72%
ROE(3y)18.84%
ROE(5y)14.07%
ROIC(3y)15.05%
ROIC(5y)13.15%
1.3 Margins
HQI has a Profit Margin (4.04%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HQI has grown nicely.
HQI has a Operating Margin of 29.16%. This is amongst the best in the industry. HQI outperforms 93.42% of its industry peers.
HQI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.16% | ||
| PM (TTM) | 4.04% | ||
| GM | N/A |
OM growth 3Y-16.15%
OM growth 5Y87.52%
PM growth 3Y-25.27%
PM growth 5Y74.67%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HQI is still creating some value.
Compared to 1 year ago, HQI has more shares outstanding
Compared to 5 years ago, HQI has more shares outstanding
The debt/assets ratio for HQI has been reduced compared to a year ago.
2.2 Solvency
HQI has an Altman-Z score of 4.28. This indicates that HQI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.28, HQI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
There is no outstanding debt for HQI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 4.28 |
ROIC/WACC1.37
WACC9.63%
2.3 Liquidity
HQI has a Current Ratio of 1.68. This is a normal value and indicates that HQI is financially healthy and should not expect problems in meeting its short term obligations.
HQI has a Current ratio of 1.68. This is in the better half of the industry: HQI outperforms 61.84% of its industry peers.
A Quick Ratio of 1.68 indicates that HQI should not have too much problems paying its short term obligations.
HQI's Quick ratio of 1.68 is fine compared to the rest of the industry. HQI outperforms 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
HQI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.65%.
The Earnings Per Share has been growing by 17.08% on average over the past years. This is quite good.
The Revenue has grown by 12.38% in the past year. This is quite good.
The Revenue for HQI have been decreasing by -17.21% on average. This is quite bad
EPS 1Y (TTM)-17.65%
EPS 3Y4.1%
EPS 5Y17.08%
EPS Q2Q%107.69%
Revenue 1Y (TTM)12.38%
Revenue growth 3Y39.98%
Revenue growth 5Y-17.21%
Sales Q2Q%1.56%
3.2 Future
HQI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.70% yearly.
Based on estimates for the next years, HQI will show a small growth in Revenue. The Revenue will grow by 4.15% on average per year.
EPS Next Y-42.29%
EPS Next 2Y26.8%
EPS Next 3Y22.42%
EPS Next 5Y16.7%
Revenue Next Year-2.48%
Revenue Next 2Y2.81%
Revenue Next 3Y3.66%
Revenue Next 5Y4.15%
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 stable.
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
HQI is valuated rather expensively with a Price/Earnings ratio of 24.70.
The rest of the industry has a similar Price/Earnings ratio as HQI.
HQI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 17.56, HQI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HQI is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
HQI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 17.56 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HQI.
HQI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HQI is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.52 | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
A more expensive valuation may be justified as HQI's earnings are expected to grow with 22.42% in the coming years.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y26.8%
EPS Next 3Y22.42%
5. Dividend
5.1 Amount
HQI has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
HQI's Dividend Yield is rather good when compared to the industry average which is at 1.83. HQI pays more dividend than 85.53% of the companies in the same industry.
HQI's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
HQI has been paying a dividend for over 5 years, so it has already some track record.
HQI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
HQI pays out 228.72% of its income as dividend. This is not a sustainable payout ratio.
DP228.72%
EPS Next 2Y26.8%
EPS Next 3Y22.42%
HIREQUEST INC
NASDAQ:HQI (1/3/2025, 8:00:01 PM)
13.83
-0.15 (-1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners12.43%
Inst Owner Change3.46%
Ins Owners44.8%
Ins Owner Change0.25%
Market Cap194.59M
Analysts83.33
Price Target19.38 (40.13%)
Short Float %2.55%
Short Ratio8.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Dividend Growth(5Y)N/A
DP228.72%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.95%
Min EPS beat(2)18.81%
Max EPS beat(2)67.08%
EPS beat(4)4
Avg EPS beat(4)59.43%
Min EPS beat(4)18.81%
Max EPS beat(4)133%
EPS beat(8)4
Avg EPS beat(8)13.93%
EPS beat(12)5
Avg EPS beat(12)4.23%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.65%
Min Revenue beat(2)1.14%
Max Revenue beat(2)4.16%
Revenue beat(4)3
Avg Revenue beat(4)3.39%
Min Revenue beat(4)-4.14%
Max Revenue beat(4)12.41%
Revenue beat(8)5
Avg Revenue beat(8)-5.83%
Revenue beat(12)8
Avg Revenue beat(12)-2.45%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-53.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.7 | ||
| Fwd PE | 17.56 | ||
| P/S | 5.36 | ||
| P/FCF | 16.52 | ||
| P/OCF | 15.93 | ||
| P/B | 3.09 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)0.56
EY4.05%
EPS(NY)0.79
Fwd EY5.7%
FCF(TTM)0.84
FCFY6.05%
OCF(TTM)0.87
OCFY6.28%
SpS2.58
BVpS4.47
TBVpS2.35
PEG (NY)N/A
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.43% | ||
| ROE | 2.33% | ||
| ROCE | 15.56% | ||
| ROIC | 13.15% | ||
| ROICexc | 13.47% | ||
| ROICexgc | 24.44% | ||
| OM | 29.16% | ||
| PM (TTM) | 4.04% | ||
| GM | N/A | ||
| FCFM | 32.47% |
ROA(3y)11.09%
ROA(5y)8.72%
ROE(3y)18.84%
ROE(5y)14.07%
ROIC(3y)15.05%
ROIC(5y)13.15%
ROICexc(3y)15.55%
ROICexc(5y)15.11%
ROICexgc(3y)36.99%
ROICexgc(5y)28.02%
ROCE(3y)17.81%
ROCE(5y)15.56%
ROICexcg growth 3Y12.21%
ROICexcg growth 5Y19.45%
ROICexc growth 3Y-14.4%
ROICexc growth 5Y9.77%
OM growth 3Y-16.15%
OM growth 5Y87.52%
PM growth 3Y-25.27%
PM growth 5Y74.67%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 15.7% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 10.93 | ||
| Cash Conversion | 91.39% | ||
| Profit Quality | 803.55% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 4.28 |
F-Score6
WACC9.63%
ROIC/WACC1.37
Cap/Depr(3y)72.31%
Cap/Depr(5y)339.66%
Cap/Sales(3y)4.95%
Cap/Sales(5y)6.16%
Profit Quality(3y)139.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-17.65%
EPS 3Y4.1%
EPS 5Y17.08%
EPS Q2Q%107.69%
EPS Next Y-42.29%
EPS Next 2Y26.8%
EPS Next 3Y22.42%
EPS Next 5Y16.7%
Revenue 1Y (TTM)12.38%
Revenue growth 3Y39.98%
Revenue growth 5Y-17.21%
Sales Q2Q%1.56%
Revenue Next Year-2.48%
Revenue Next 2Y2.81%
Revenue Next 3Y3.66%
Revenue Next 5Y4.15%
EBIT growth 1Y-2.29%
EBIT growth 3Y17.38%
EBIT growth 5Y55.25%
EBIT Next Year38.64%
EBIT Next 3Y22.81%
EBIT Next 5Y14.76%
FCF growth 1Y-1.51%
FCF growth 3Y3.57%
FCF growth 5Y32.73%
OCF growth 1Y-11.91%
OCF growth 3Y-0.8%
OCF growth 5Y32.3%