ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - NYSE:RHI - US7703231032 - Common Stock
34.98 USD
-0.46 (-1.3%)
34.98 USD
0 (0%)
RHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. RHI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RHI has a decent growth rate and is not valued too expensively. Finally RHI also has an excellent dividend rating. These ratings could make RHI a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year RHI was profitable.
RHI had a positive operating cash flow in the past year.
Each year in the past 5 years RHI has been profitable.
RHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RHI (6.29%) is better than 65.85% of its industry peers.
RHI's Return On Equity of 13.57% is fine compared to the rest of the industry. RHI outperforms 64.63% of its industry peers.
RHI's Return On Invested Capital of 7.76% is in line compared to the rest of the industry. RHI outperforms 52.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 12.76%.
The last Return On Invested Capital (7.76%) for RHI is well below the 3 year average (22.98%), which needs to be investigated, but indicates that RHI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 13.57% | ||
| ROIC | 7.76% |
ROA(3y)14.89%
ROA(5y)15.38%
ROE(3y)28.7%
ROE(5y)30.97%
ROIC(3y)22.98%
ROIC(5y)23.62%
1.3 Margins
RHI's Profit Margin of 3.20% is in line compared to the rest of the industry. RHI outperforms 51.22% of its industry peers.
RHI's Profit Margin has declined in the last couple of years.
The Operating Margin of RHI (2.97%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RHI has declined.
RHI's Gross Margin of 38.00% is in line compared to the rest of the industry. RHI outperforms 54.88% of its industry peers.
RHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% |
OM growth 3Y-28.69%
OM growth 5Y-14.85%
PM growth 3Y-22.33%
PM growth 5Y-10.31%
GM growth 3Y-2.42%
GM growth 5Y-1.38%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RHI is creating value.
RHI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RHI has been reduced compared to 5 years ago.
RHI 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
RHI has an Altman-Z score of 3.88. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.88, RHI is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
There is no outstanding debt for RHI. 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 | 3.88 |
ROIC/WACC0.89
WACC8.7%
2.3 Liquidity
RHI has a Current Ratio of 1.57. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
RHI's Current ratio of 1.57 is in line compared to the rest of the industry. RHI outperforms 58.54% of its industry peers.
RHI has a Quick Ratio of 1.57. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.57, RHI is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.67%.
Measured over the past years, RHI shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.95% on average per year.
The Revenue has decreased by -6.95% in the past year.
The Revenue has been decreasing by -0.93% on average over the past years.
EPS 1Y (TTM)-41.67%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-37.88%
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.98%
3.2 Future
The Earnings Per Share is expected to grow by 28.18% on average over the next years. This is a very strong growth
Based on estimates for the next years, RHI will show a quite strong growth in Revenue. The Revenue will grow by 8.52% on average per year.
EPS Next Y-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
EPS Next 5Y28.18%
Revenue Next Year-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
Revenue Next 5Y8.52%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.99, RHI is valued on the expensive side.
RHI's Price/Earnings ratio is a bit cheaper when compared to the industry. RHI is cheaper than 60.98% of the companies in the same industry.
RHI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.27.
The Price/Forward Earnings ratio is 15.78, which indicates a correct valuation of RHI.
67.07% of the companies in the same industry are more expensive than RHI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, RHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, RHI is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.5 | ||
| EV/EBITDA | 14.51 |
4.3 Compensation for Growth
RHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.49%, RHI is a good candidate for dividend investing.
RHI's Dividend Yield is rather good when compared to the industry average which is at 2.07. RHI pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
5.2 History
On average, the dividend of RHI grows each year by 11.32%, which is quite nice.
RHI has paid a dividend for at least 10 years, which is a reliable track record.
RHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.32%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
RHI pays out 128.51% of its income as dividend. This is not a sustainable payout ratio.
RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP128.51%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
34.98
-0.46 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners102.41%
Inst Owner Change6.4%
Ins Owners1.91%
Ins Owner Change3.67%
Market Cap3.56B
Analysts50.53
Price Target44.37 (26.84%)
Short Float %13.3%
Short Ratio6.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP128.51%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.67%
Min EPS beat(2)-53.13%
Max EPS beat(2)1.79%
EPS beat(4)2
Avg EPS beat(4)-13.23%
Min EPS beat(4)-53.13%
Max EPS beat(4)2.73%
EPS beat(8)3
Avg EPS beat(8)-6.4%
EPS beat(12)3
Avg EPS beat(12)-5.99%
EPS beat(16)6
Avg EPS beat(16)-3.61%
Revenue beat(2)1
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)4
Avg Revenue beat(16)-1.21%
PT rev (1m)-0.57%
PT rev (3m)-12.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.82%
EPS NY rev (1m)-15.4%
EPS NY rev (3m)-15.4%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.99 | ||
| Fwd PE | 15.78 | ||
| P/S | 0.64 | ||
| P/FCF | 12.5 | ||
| P/OCF | 10.33 | ||
| P/B | 2.71 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 14.51 |
EPS(TTM)1.75
EY5%
EPS(NY)2.22
Fwd EY6.34%
FCF(TTM)2.8
FCFY8%
OCF(TTM)3.39
OCFY9.68%
SpS54.74
BVpS12.89
TBVpS10.4
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 13.57% | ||
| ROCE | 10.96% | ||
| ROIC | 7.76% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 13.39% | ||
| OM | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% | ||
| FCFM | 5.11% |
ROA(3y)14.89%
ROA(5y)15.38%
ROE(3y)28.7%
ROE(5y)30.97%
ROIC(3y)22.98%
ROIC(5y)23.62%
ROICexc(3y)37.16%
ROICexc(5y)38.31%
ROICexgc(3y)48.04%
ROICexgc(5y)49.78%
ROCE(3y)32.44%
ROCE(5y)33.36%
ROICexcg growth 3Y-32.53%
ROICexcg growth 5Y-13.71%
ROICexc growth 3Y-32.51%
ROICexc growth 5Y-14.55%
OM growth 3Y-28.69%
OM growth 5Y-14.85%
PM growth 3Y-22.33%
PM growth 5Y-10.31%
GM growth 3Y-2.42%
GM growth 5Y-1.38%
F-Score5
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.46% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 157.27% | ||
| Profit Quality | 159.92% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 3.88 |
F-Score5
WACC8.7%
ROIC/WACC0.89
Cap/Depr(3y)104.95%
Cap/Depr(5y)86.94%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.75%
Profit Quality(3y)126.38%
Profit Quality(5y)131.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-41.67%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-37.88%
EPS Next Y-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.98%
Revenue Next Year-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
Revenue Next 5Y8.52%
EBIT growth 1Y-49.36%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year-22.02%
EBIT Next 3Y15.73%
EBIT Next 5Y25.83%
FCF growth 1Y-58.33%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-52.7%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%