ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
28.155 USD
-0.41 (-1.45%)
Overall RHI gets a fundamental rating of 6 out of 10. We evaluated RHI against 87 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. 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.
- RHI had positive earnings in each of the past 5 years.
- Each year in the past 5 years RHI had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of RHI (5.46%) is better than 60.92% of its industry peers.
- With a Return On Equity value of 12.09%, RHI perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
- RHI's Return On Invested Capital of 5.66% is in line compared to the rest of the industry. RHI outperforms 50.57% of its industry peers.
- RHI had an Average Return On Invested Capital over the past 3 years of 22.98%. This is significantly above the industry average of 11.85%.
- 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 of 2.85%. This is comparable to the rest of the industry: RHI outperforms 52.87% of its industry peers.
- RHI's Profit Margin has declined in the last couple of years.
- RHI has a Operating Margin (2.17%) which is in line with its industry peers.
- RHI's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 37.53%, RHI is in line with its industry, outperforming 54.02% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RHI is creating value.
- The number of shares outstanding for RHI has been reduced compared to 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
- An Altman-Z score of 3.48 indicates that RHI is not in any danger for bankruptcy at the moment.
- RHI's Altman-Z score of 3.48 is fine compared to the rest of the industry. RHI outperforms 66.67% 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 | 3.48 |
ROIC/WACC0.64
WACC8.88%
2.3 Liquidity
- A Current Ratio of 1.55 indicates that RHI should not have too much problems paying its short term obligations.
- RHI's Current ratio of 1.55 is in line compared to the rest of the industry. RHI outperforms 54.02% of its industry peers.
- RHI has a Quick 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.
- With a Quick ratio value of 1.55, RHI perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- The earnings per share for RHI have decreased strongly by -43.80% in the last year.
- 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.
- RHI shows a decrease in Revenue. In the last year, the revenue decreased by -7.27%.
- 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
- RHI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.18% yearly.
- The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y-45.53%
EPS Next 2Y-16.82%
EPS Next 3Y1.74%
EPS Next 5Y28.18%
Revenue Next Year-7.48%
Revenue Next 2Y-3.45%
Revenue Next 3Y0.01%
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
- RHI is valuated rather expensively with a Price/Earnings ratio of 18.28.
- Based on the Price/Earnings ratio, RHI is valued a bit cheaper than 65.52% of the companies in the same industry.
- RHI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 16.68 indicates a correct valuation of RHI.
- Based on the Price/Forward Earnings ratio, RHI is valued a bit cheaper than 65.52% of the companies in the same industry.
- RHI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.28 | ||
| Fwd PE | 16.68 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 62.07% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, RHI is valued cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.04 | ||
| EV/EBITDA | 14.74 |
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-16.82%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
- RHI has a Yearly Dividend Yield of 8.23%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.44, RHI pays a better dividend. On top of this RHI pays more dividend than 96.55% of the companies listed in the same industry.
- RHI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.23% |
5.2 History
- The dividend of RHI is nicely growing with an annual growth rate of 11.32%!
- RHI has been paying a dividend for at least 10 years, so it has 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.
- The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP150.26%
EPS Next 2Y-16.82%
EPS Next 3Y1.74%
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.
What is the valuation status for RHI stock?
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.
What is the earnings growth outlook for ROBERT HALF INC?
The Earnings per Share (EPS) of ROBERT HALF INC (RHI) is expected to decline by -45.53% in the next year.
Can you provide the dividend sustainability for RHI stock?
The dividend rating of ROBERT HALF INC (RHI) is 8 / 10 and the dividend payout ratio is 150.26%.