HEIDRICK & STRUGGLES INTL (HSII) Stock Fundamental Analysis
USA - NASDAQ:HSII - US4228191023 - Common Stock
58.74 USD
+0.02 (+0.03%)
58.74 USD
0 (0%)
Overall HSII gets a fundamental rating of 5 out of 10. We evaluated HSII against 87 industry peers in the Professional Services industry. Both the profitability and the financial health of HSII get a neutral evaluation. Nothing too spectacular is happening here. 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 (3.00%) is comparable to the rest of the industry.
With a Return On Equity value of 6.95%, HSII perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.90%, HSII is doing good in the industry, outperforming 63.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HSII is below the industry average of 13.25%.
| 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
With a Profit Margin value of 2.92%, HSII perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
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 59.77% 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 95.40% 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.
HSII has more shares outstanding than it did 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 2.96 indicates that HSII is not a great score, but indicates only limited risk for bankruptcy at the moment.
HSII has a Altman-Z score of 2.96. This is comparable to the rest of the industry: HSII outperforms 56.32% of its industry peers.
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 | 2.96 |
ROIC/WACC1.02
WACC8.75%
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.
The Current ratio of HSII (1.63) is better than 64.37% of its industry peers.
A Quick Ratio of 1.63 indicates that HSII should not have too much problems paying its short term obligations.
HSII's Quick ratio of 1.63 is fine compared to the rest of the industry. HSII outperforms 65.52% 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.
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 grown by 8.89% in the past year. This is quite good.
The Revenue has been growing by 8.99% on average over the past years. This is quite good.
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-2.87%
EPS Next 2Y6.88%
EPS Next 3Y6.13%
EPS Next 5YN/A
Revenue Next Year10.47%
Revenue Next 2Y5.83%
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
Based on the Price/Earnings ratio of 17.69, the valuation of HSII can be described as rather expensive.
Based on the Price/Earnings ratio, HSII is valued a bit cheaper than the industry average as 63.22% of the companies are valued more expensively.
HSII is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.38 indicates a correct valuation of HSII.
The rest of the industry has a similar Price/Forward Earnings ratio as HSII.
When comparing the Price/Forward Earnings ratio of HSII to the average of the S&P500 Index (32.68), we can say HSII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.69 | ||
| Fwd PE | 16.38 |
4.2 Price Multiples
HSII's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HSII is cheaper than 90.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HSII is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.97 | ||
| EV/EBITDA | 6.32 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.51
EPS Next 2Y6.88%
EPS Next 3Y6.13%
5. Dividend
5.1 Amount
HSII has a Yearly Dividend Yield of 1.02%.
Compared to an average industry Dividend Yield of 4.58, HSII pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, HSII's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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
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%
58.74
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change0.08%
Ins Owners1.47%
Ins Owner Change1.57%
Market Cap1.22B
Revenue(TTM)1.17B
Net Income(TTM)34.23M
Analysts45.71
Price Target60.18 (2.45%)
Short Float %1.7%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)10.63%
PT rev (3m)14.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.64%
EPS NY rev (1m)0%
EPS NY rev (3m)4.42%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)4.91%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)4.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.69 | ||
| Fwd PE | 16.38 | ||
| P/S | 1.04 | ||
| P/FCF | 10.97 | ||
| P/OCF | 9.56 | ||
| P/B | 2.48 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 6.32 |
EPS(TTM)3.32
EY5.65%
EPS(NY)3.59
Fwd EY6.11%
FCF(TTM)5.35
FCFY9.11%
OCF(TTM)6.14
OCFY10.46%
SpS56.42
BVpS23.69
TBVpS16.32
PEG (NY)N/A
PEG (5Y)4.51
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 | 2.96 |
F-Score5
WACC8.75%
ROIC/WACC1.02
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 2Y5.83%
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 4 / 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.