HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
USA - NASDAQ:HSII - US4228191023 - Common Stock
58.36 USD
+0.11 (+0.19%)
58.36 USD
0 (0%)
Taking everything into account, HSII scores 5 out of 10 in our fundamental rating. HSII was compared to 86 industry peers in the Professional Services industry. HSII has an average financial health and profitability rating. HSII has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HSII had positive earnings in the past year.
In the past year HSII had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.00%, HSII is in line with its industry, outperforming 53.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.95%, HSII is in line with its industry, outperforming 52.33% of the companies in the same industry.
HSII has a better Return On Invested Capital (8.90%) than 63.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HSII is below the industry average of 13.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 6.95% | ||
| ROIC | 8.9% |
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
HSII has a Profit Margin of 2.92%. This is comparable to the rest of the industry: HSII outperforms 51.16% of its industry peers.
In the last couple of years the Profit Margin of HSII has declined.
Looking at the Operating Margin, with a value of 6.83%, HSII is in line with its industry, outperforming 58.14% of the companies in the same industry.
In the last couple of years the Operating Margin of HSII has declined.
Looking at the Gross Margin, with a value of 87.73%, HSII belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
HSII's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.83% | ||
| PM (TTM) | 2.92% | ||
| GM | 87.73% |
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.
The number of shares outstanding for HSII has been increased compared to 1 year ago.
Compared to 5 years ago, HSII has more shares outstanding
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
HSII has an Altman-Z score of 2.95. This is not the best score and indicates that HSII is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.95, HSII is in line with its industry, outperforming 55.81% of the companies in the same industry.
There is no outstanding debt for HSII. 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 | 0 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.03
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.63 indicates that HSII should not have too much problems paying its short term obligations.
HSII has a better Current ratio (1.63) than 62.79% of its industry peers.
HSII has a Quick Ratio of 1.63. This is a normal value and indicates that HSII is financially healthy and should not expect problems in meeting its short term obligations.
HSII has a better Quick ratio (1.63) than 63.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.00% over the past year.
The Earnings Per Share has been growing slightly by 3.93% on average over the past years.
Looking at the last year, HSII shows a quite strong growth in Revenue. The Revenue has grown by 8.89% in the last year.
HSII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.99% yearly.
EPS 1Y (TTM)19%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%26.87%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%13.86%
3.2 Future
Based on estimates for the next years, HSII will show a small growth in Earnings Per Share. The EPS will grow by 6.13% on average per year.
HSII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.20% yearly.
EPS Next Y-2.87%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y6.13%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.58, which indicates a rather expensive current valuation of HSII.
66.28% 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 26.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.27, the valuation of HSII can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HSII indicates a somewhat cheap valuation: HSII is cheaper than 63.95% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. HSII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
93.02% of the companies in the same industry are more expensive than HSII, based on the Enterprise Value to EBITDA ratio.
HSII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HSII is cheaper than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.9 | ||
| EV/EBITDA | 6.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.48
EPS Next 2Y6.88%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.93, HSII pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.03, HSII pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.64%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
37.89% of the earnings are spent on dividend by HSII. This is a low number and sustainable payout ratio.
The dividend of HSII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.89%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
58.36
+0.11 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change-0.06%
Ins Owners1.47%
Ins Owner Change1.57%
Market Cap1.21B
Revenue(TTM)1.17B
Net Income(TTM)34.23M
Analysts82.5
Price Target54.4 (-6.79%)
Short Float %1.11%
Short Ratio0.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend0.64
Dividend Growth(5Y)0.64%
DP37.89%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.34%
Min EPS beat(2)-2.45%
Max EPS beat(2)13.12%
EPS beat(4)3
Avg EPS beat(4)20.99%
Min EPS beat(4)-2.45%
Max EPS beat(4)68.96%
EPS beat(8)7
Avg EPS beat(8)14.88%
EPS beat(12)10
Avg EPS beat(12)14.33%
EPS beat(16)13
Avg EPS beat(16)16.49%
Revenue beat(2)2
Avg Revenue beat(2)5.21%
Min Revenue beat(2)4.83%
Max Revenue beat(2)5.59%
Revenue beat(4)4
Avg Revenue beat(4)4.66%
Min Revenue beat(4)3.6%
Max Revenue beat(4)5.59%
Revenue beat(8)8
Avg Revenue beat(8)3.41%
Revenue beat(12)10
Avg Revenue beat(12)2.16%
Revenue beat(16)13
Avg Revenue beat(16)2.62%
PT rev (1m)0%
PT rev (3m)3.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)3.46%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 16.27 | ||
| P/S | 1.03 | ||
| P/FCF | 10.9 | ||
| P/OCF | 9.5 | ||
| P/B | 2.46 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 6.22 |
EPS(TTM)3.32
EY5.69%
EPS(NY)3.59
Fwd EY6.15%
FCF(TTM)5.35
FCFY9.17%
OCF(TTM)6.14
OCFY10.53%
SpS56.42
BVpS23.69
TBVpS16.32
PEG (NY)N/A
PEG (5Y)4.48
Graham Number42.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 6.95% | ||
| ROCE | 11.27% | ||
| ROIC | 8.9% | ||
| ROICexc | 20.32% | ||
| ROICexgc | 39.96% | ||
| OM | 6.83% | ||
| PM (TTM) | 2.92% | ||
| GM | 87.73% | ||
| FCFM | 9.49% |
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%
ROICexgc growth 3YN/A
ROICexgc 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.01% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 127.51% | ||
| Profit Quality | 325.14% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 2.95 |
F-Score5
WACC8.66%
ROIC/WACC1.03
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)19%
EPS 3Y-7.75%
EPS 5Y3.93%
EPS Q2Q%26.87%
EPS Next Y-2.87%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue 1Y (TTM)8.89%
Revenue growth 3Y3.42%
Revenue growth 5Y8.99%
Sales Q2Q%13.86%
Revenue Next Year10.47%
Revenue Next 2Y6.13%
Revenue Next 3Y6.2%
Revenue Next 5YN/A
EBIT growth 1Y1.18%
EBIT growth 3Y-10.2%
EBIT growth 5Y1.81%
EBIT Next Year95.07%
EBIT Next 3Y30.7%
EBIT Next 5YN/A
FCF growth 1Y2326.04%
FCF growth 3Y-22.36%
FCF growth 5Y10.54%
OCF growth 1Y1368.03%
OCF growth 3Y-17.86%
OCF growth 5Y13.86%
HEIDRICK & STRUGGLES INTL / HSII FAQ
What is the fundamental rating for HSII stock?
ChartMill assigns a fundamental rating of 5 / 10 to HSII.
What is the valuation status for HSII stock?
ChartMill assigns a valuation rating of 5 / 10 to HEIDRICK & STRUGGLES INTL (HSII). This can be considered as Fairly Valued.
What is the profitability of HSII stock?
HEIDRICK & STRUGGLES INTL (HSII) has a profitability rating of 4 / 10.
Can you provide the financial health for HSII stock?
The financial health rating of HEIDRICK & STRUGGLES INTL (HSII) is 6 / 10.
Can you provide the expected EPS growth for HSII stock?
The Earnings per Share (EPS) of HEIDRICK & STRUGGLES INTL (HSII) is expected to decline by -2.87% in the next year.