HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
NASDAQ:HSII - Nasdaq - US4228191023 - Common Stock - Currency: USD
HSII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. HSII has an excellent financial health rating, but there are some minor concerns on its profitability. HSII has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HSII was profitable.
HSII had a positive operating cash flow in the past year.
HSII had positive earnings in 4 of the past 5 years.
Of the past 5 years HSII 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HSII (0.78%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.72%, HSII is in line with its industry, outperforming 41.46% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.66%, HSII is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HSII is in line with the industry average of 12.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 1.72% | ||
| ROIC | 8.66% |
ROA(3y)4.09%
ROA(5y)2.81%
ROE(3y)11.02%
ROE(5y)8.12%
ROIC(3y)10.87%
ROIC(5y)11.02%
1.3 Margins
The Profit Margin of HSII (0.71%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HSII has declined.
HSII has a Operating Margin of 6.52%. This is comparable to the rest of the industry: HSII outperforms 59.76% of its industry peers.
HSII's Operating Margin has declined in the last couple of years.
HSII has a Gross Margin of 87.77%. This is amongst the best in the industry. HSII outperforms 96.34% of its industry peers.
HSII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 0.71% | ||
| GM | 87.77% |
OM growth 3Y-13.17%
OM growth 5Y-6.58%
PM growth 3Y-52.28%
PM growth 5Y-34.45%
GM growth 3Y-2.32%
GM growth 5Y-2.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HSII is still creating some value.
HSII has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HSII has been increased compared to 5 years ago.
HSII has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.00 indicates that HSII is not in any danger for bankruptcy at the moment.
HSII has a Altman-Z score (3.00) which is comparable to the rest of the industry.
HSII 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 |
ROIC/WACC0.96
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.70 indicates that HSII should not have too much problems paying its short term obligations.
HSII has a Current ratio of 1.70. This is in the better half of the industry: HSII outperforms 64.63% of its industry peers.
A Quick Ratio of 1.70 indicates that HSII should not have too much problems paying its short term obligations.
HSII has a better Quick ratio (1.70) than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
HSII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.18%, which is quite good.
HSII shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.93% yearly.
The Revenue has been growing slightly by 6.16% in the past year.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
EPS 1Y (TTM)10.18%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%0%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%8.39%
3.2 Future
HSII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.09% yearly.
Based on estimates for the next years, HSII will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y-6.99%
EPS Next 2Y5.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.51%
Revenue Next 2Y4.07%
Revenue Next 3YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.92 indicates a correct valuation of HSII.
69.51% of the companies in the same industry are more expensive than HSII, based on the Price/Earnings ratio.
HSII is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.51, which indicates a correct valuation of HSII.
73.17% of the companies in the same industry are more expensive than HSII, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. HSII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.51 |
4.2 Price Multiples
HSII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSII is cheaper than 92.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HSII is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 6.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.8
EPS Next 2Y5.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.24%.
HSII's Dividend Yield is a higher than the industry average which is at 2.06.
With a Dividend Yield of 1.24, HSII pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of HSII has a limited annual growth rate of 0.64%.
HSII has paid a dividend for at least 10 years, which is a reliable track record.
HSII has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.64%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
161.25% of the earnings are spent on dividend by HSII. This is not a sustainable payout ratio.
HSII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP161.25%
EPS Next 2Y5.09%
EPS Next 3YN/A
46.86
-1.54 (-3.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change0%
Ins Owners1.48%
Ins Owner Change3.23%
Market Cap966.25M
Analysts82.5
Price Target52.36 (11.74%)
Short Float %1.89%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.64
Dividend Growth(5Y)0.64%
DP161.25%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)33.26%
Min EPS beat(2)-2.45%
Max EPS beat(2)68.96%
EPS beat(4)3
Avg EPS beat(4)21.86%
Min EPS beat(4)-2.45%
Max EPS beat(4)68.96%
EPS beat(8)6
Avg EPS beat(8)13.16%
EPS beat(12)10
Avg EPS beat(12)14.99%
EPS beat(16)13
Avg EPS beat(16)17.99%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)4.61%
Max Revenue beat(2)4.83%
Revenue beat(4)4
Avg Revenue beat(4)3.96%
Min Revenue beat(4)2.81%
Max Revenue beat(4)4.83%
Revenue beat(8)8
Avg Revenue beat(8)2.92%
Revenue beat(12)9
Avg Revenue beat(12)1.68%
Revenue beat(16)13
Avg Revenue beat(16)3.3%
PT rev (1m)1.32%
PT rev (3m)2.67%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)0.91%
EPS NY rev (1m)1.36%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)3.33%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 13.51 | ||
| P/S | 0.85 | ||
| P/FCF | 9.78 | ||
| P/OCF | 7.94 | ||
| P/B | 2.08 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | 6.04 |
EPS(TTM)3.14
EY6.7%
EPS(NY)3.47
Fwd EY7.4%
FCF(TTM)4.79
FCFY10.22%
OCF(TTM)5.9
OCFY12.59%
SpS55
BVpS22.55
TBVpS15.24
PEG (NY)N/A
PEG (5Y)3.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 1.72% | ||
| ROCE | 10.96% | ||
| ROIC | 8.66% | ||
| ROICexc | 16.7% | ||
| ROICexgc | 29.38% | ||
| OM | 6.52% | ||
| PM (TTM) | 0.71% | ||
| GM | 87.77% | ||
| FCFM | 8.71% |
ROA(3y)4.09%
ROA(5y)2.81%
ROE(3y)11.02%
ROE(5y)8.12%
ROIC(3y)10.87%
ROIC(5y)11.02%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.76%
ROCE(5y)13.95%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-49.09%
ROICexc growth 5Y4.22%
OM growth 3Y-13.17%
OM growth 5Y-6.58%
PM growth 3Y-52.28%
PM growth 5Y-34.45%
GM growth 3Y-2.32%
GM growth 5Y-2.06%
F-Score5
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 120.95% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.05% | ||
| Profit Quality | 1234.13% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 3 |
F-Score5
WACC8.99%
ROIC/WACC0.96
Cap/Depr(3y)105.62%
Cap/Depr(5y)75.16%
Cap/Sales(3y)1.56%
Cap/Sales(5y)1.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.18%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%0%
EPS Next Y-6.99%
EPS Next 2Y5.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.16%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%8.39%
Revenue Next Year5.51%
Revenue Next 2Y4.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.81%
EBIT growth 3Y-10.2%
EBIT growth 5Y1.81%
EBIT Next Year78.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y214.51%
FCF growth 3Y-22.36%
FCF growth 5Y10.54%
OCF growth 1Y173.33%
OCF growth 3Y-17.86%
OCF growth 5Y13.86%