ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
27.72 USD
+0.18 (+0.65%)
27.72 USD
0 (0%)
RHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. RHI has an excellent financial health rating, but there are some minor concerns on its profitability. RHI has a correct valuation and a medium growth rate. RHI also has an excellent dividend rating. This makes RHI very considerable 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.
RHI had positive earnings in each of the past 5 years.
In the past 5 years RHI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RHI (5.46%) is better than 60.47% of its industry peers.
RHI's Return On Equity of 12.09% is in line compared to the rest of the industry. RHI outperforms 59.30% of its industry peers.
With a Return On Invested Capital value of 5.66%, RHI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RHI is significantly above the industry average of 12.04%.
The last Return On Invested Capital (5.66%) 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 | 5.46% | ||
| ROE | 12.09% | ||
| ROIC | 5.66% |
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 has a Profit Margin (2.85%) which is in line with its industry peers.
In the last couple of years the Profit Margin of RHI has declined.
With a Operating Margin value of 2.17%, RHI perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
RHI's Operating Margin has declined in the last couple of years.
RHI has a Gross Margin (37.53%) which is in line with its industry peers.
RHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.17% | ||
| PM (TTM) | 2.85% | ||
| GM | 37.53% |
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
RHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
RHI has less shares outstanding than it did 1 year ago.
RHI has less shares outstanding than it did 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 3.44. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
RHI has a better Altman-Z score (3.44) than 65.12% of its industry peers.
RHI 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 | 3.44 |
ROIC/WACC0.65
WACC8.78%
2.3 Liquidity
RHI has a Current Ratio of 1.55. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RHI (1.55) is comparable to the rest of the industry.
A Quick Ratio of 1.55 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a Quick ratio (1.55) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.80%.
The Earnings Per Share has been decreasing by -8.95% on average over the past years.
The Revenue has decreased by -7.27% in the past year.
The Revenue has been decreasing by -0.93% on average over the past years.
EPS 1Y (TTM)-43.8%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-32.81%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-7.54%
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-44.76%
EPS Next 2Y-13.2%
EPS Next 3Y6.94%
EPS Next 5Y28.18%
Revenue Next Year-7.48%
Revenue Next 2Y-3.26%
Revenue Next 3Y0.38%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.00, the valuation of RHI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 66.28% of the companies listed in the same industry.
RHI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.08 indicates a correct valuation of RHI.
Based on the Price/Forward Earnings ratio, RHI is valued a bit cheaper than 66.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, RHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHI is valued a bit cheaper than 61.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RHI is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.86 | ||
| EV/EBITDA | 14.13 |
4.3 Compensation for Growth
The decent profitability rating of RHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-13.2%
EPS Next 3Y6.94%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 8.57%, which is a nice return.
RHI's Dividend Yield is rather good when compared to the industry average which is at 1.52. RHI pays more dividend than 97.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.57% |
5.2 History
The dividend of RHI is nicely growing with an annual growth rate of 11.32%!
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
150.26% of the earnings are spent on dividend by RHI. This is not a sustainable payout ratio.
RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP150.26%
EPS Next 2Y-13.2%
EPS Next 3Y6.94%
27.72
+0.18 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change0.94%
Ins Owners1.93%
Ins Owner Change-0.1%
Market Cap2.80B
Revenue(TTM)5.46B
Net Income(TTM)155.52M
Analysts50.53
Price Target31.39 (13.24%)
Short Float %13.29%
Short Ratio5.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.57% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP150.26%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.48%
Min EPS beat(2)-0.84%
Max EPS beat(2)1.79%
EPS beat(4)1
Avg EPS beat(4)-14.12%
Min EPS beat(4)-53.13%
Max EPS beat(4)1.79%
EPS beat(8)2
Avg EPS beat(8)-7.81%
EPS beat(12)3
Avg EPS beat(12)-5.47%
EPS beat(16)5
Avg EPS beat(16)-4.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.52%
PT rev (1m)-1.89%
PT rev (3m)-20.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.45%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-8.34%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18 | ||
| Fwd PE | 15.08 | ||
| P/S | 0.51 | ||
| P/FCF | 11.86 | ||
| P/OCF | 9.6 | ||
| P/B | 2.18 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 14.13 |
EPS(TTM)1.54
EY5.56%
EPS(NY)1.84
Fwd EY6.63%
FCF(TTM)2.34
FCFY8.43%
OCF(TTM)2.89
OCFY10.42%
SpS53.94
BVpS12.71
TBVpS10.2
PEG (NY)N/A
PEG (5Y)N/A
Graham Number20.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 12.09% | ||
| ROCE | 8% | ||
| ROIC | 5.66% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 9.73% | ||
| OM | 2.17% | ||
| PM (TTM) | 2.85% | ||
| GM | 37.53% | ||
| FCFM | 4.33% |
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%
ROICexgc growth 3Y-32.53%
ROICexgc 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 Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.35% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 170.55% | ||
| Profit Quality | 152.1% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 3.44 |
F-Score5
WACC8.78%
ROIC/WACC0.65
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)-43.8%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-32.81%
EPS Next Y-44.76%
EPS Next 2Y-13.2%
EPS Next 3Y6.94%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-7.54%
Revenue Next Year-7.48%
Revenue Next 2Y-3.26%
Revenue Next 3Y0.38%
Revenue Next 5Y8.52%
EBIT growth 1Y-51.4%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year-28.7%
EBIT Next 3Y10.39%
EBIT Next 5Y25.83%
FCF growth 1Y-65.1%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-59.66%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%
ROBERT HALF INC / RHI FAQ
What is the ChartMill fundamental rating of ROBERT HALF INC (RHI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RHI.
Can you provide the valuation status for ROBERT HALF INC?
ChartMill assigns a valuation rating of 5 / 10 to ROBERT HALF INC (RHI). This can be considered as Fairly Valued.
What is the profitability of RHI stock?
ROBERT HALF INC (RHI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for RHI stock?
The Price/Earnings (PE) ratio for ROBERT HALF INC (RHI) is 18 and the Price/Book (PB) ratio is 2.18.
What is the expected EPS growth for ROBERT HALF INC (RHI) stock?
The Earnings per Share (EPS) of ROBERT HALF INC (RHI) is expected to decline by -44.76% in the next year.