HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
USA - NASDAQ:HSII - US4228191023 - Common Stock
49.99 USD
+0.3 (+0.6%)
49.99 USD
0 (0%)
Overall HSII gets a fundamental rating of 5 out of 10. We evaluated HSII against 82 industry peers in the Professional Services industry. HSII has an average financial health and profitability rating. HSII has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HSII was profitable.
HSII had a positive operating cash flow in the past year.
Of the past 5 years HSII 4 years were profitable.
Of the past 5 years HSII 4 years had a positive operating cash flow.
1.2 Ratios
HSII has a Return On Assets (3.00%) which is comparable to the rest of the industry.
HSII's Return On Equity of 6.95% is in line compared to the rest of the industry. HSII outperforms 51.22% of its industry peers.
With a decent Return On Invested Capital value of 8.90%, HSII is doing good in the industry, outperforming 62.20% 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 12.76%.
| 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 50.00% of its industry peers.
In the last couple of years the Profit Margin of HSII has declined.
HSII's Operating Margin of 6.83% is in line compared to the rest of the industry. HSII outperforms 57.32% of its industry peers.
In the last couple of years the Operating Margin of HSII has declined.
HSII has a Gross Margin of 87.73%. This is amongst the best in the industry. HSII outperforms 95.12% of its industry peers.
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
HSII has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HSII has more shares outstanding than it did 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 2.79. 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.
HSII has a Altman-Z score of 2.79. This is comparable to the rest of the industry: HSII outperforms 46.34% of its industry peers.
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 | 2.79 |
ROIC/WACC1.03
WACC8.68%
2.3 Liquidity
HSII has a Current 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.
With a decent Current ratio value of 1.63, HSII is doing good in the industry, outperforming 64.63% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that HSII should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.63, HSII is doing good in the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
HSII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.00%, which is quite good.
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.
Measured over the past years, HSII shows a quite strong growth in Revenue. The Revenue has been growing by 8.99% on average per year.
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
HSII is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.13% yearly.
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-6.12%
EPS Next 2Y6.25%
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.06 indicates a correct valuation of HSII.
HSII's Price/Earnings ratio is a bit cheaper when compared to the industry. HSII is cheaper than 74.39% of the companies in the same industry.
HSII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 14.10, which indicates a correct valuation of HSII.
HSII's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HSII is cheaper than 70.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, HSII is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
HSII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSII is cheaper than 96.34% of the companies in the same industry.
HSII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HSII is cheaper than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.32 | ||
| EV/EBITDA | 4.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.83
EPS Next 2Y6.25%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, HSII has a reasonable but not impressive dividend return.
HSII's Dividend Yield is a higher than the industry average which is at 2.07.
Compared to an average S&P500 Dividend Yield of 2.38, HSII's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of HSII has a limited annual growth rate of 0.64%.
HSII has been paying a dividend for at least 10 years, so it has 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
HSII pays out 37.89% of its income as dividend. This is a sustainable payout ratio.
HSII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.89%
EPS Next 2Y6.25%
EPS Next 3Y6.13%
49.99
+0.3 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.36%
Inst Owner Change0.13%
Ins Owners1.46%
Ins Owner Change1.57%
Market Cap1.04B
Analysts82.5
Price Target54.4 (8.82%)
Short Float %1.33%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)2.56%
PT rev (3m)5.26%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)4.83%
EPS NY rev (1m)0.93%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)5.32%
Revenue NY rev (1m)4.7%
Revenue NY rev (3m)5.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.06 | ||
| Fwd PE | 14.1 | ||
| P/S | 0.88 | ||
| P/FCF | 9.32 | ||
| P/OCF | 8.12 | ||
| P/B | 2.11 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 4.48 |
EPS(TTM)3.32
EY6.64%
EPS(NY)3.54
Fwd EY7.09%
FCF(TTM)5.37
FCFY10.74%
OCF(TTM)6.16
OCFY12.32%
SpS56.56
BVpS23.75
TBVpS16.36
PEG (NY)N/A
PEG (5Y)3.83
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%
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 Turnover1.03
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 | 2.79 |
F-Score5
WACC8.68%
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-6.12%
EPS Next 2Y6.25%
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 Year91.15%
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%