ROBERT HALF INC (RHI) Stock Fundamental Analysis
NYSE:RHI - New York Stock Exchange, Inc. - US7703231032 - Common Stock
Overall RHI gets a fundamental rating of 6 out of 10. We evaluated RHI against 82 industry peers in the Professional Services industry. RHI has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, RHI is valued expensive at the moment. Finally RHI also has an excellent dividend rating. This makes RHI very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
RHI had positive earnings in the past year.
In the past year RHI had a positive cash flow from operations.
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
RHI has a better Return On Assets (9.54%) than 79.75% of its industry peers.
RHI's Return On Equity of 19.31% is fine compared to the rest of the industry. RHI outperforms 67.09% of its industry peers.
With a decent Return On Invested Capital value of 10.55%, RHI is doing good in the industry, outperforming 67.09% of the companies in the same industry.
RHI had an Average Return On Invested Capital over the past 3 years of 30.99%. This is significantly above the industry average of 13.48%.
The 3 year average ROIC (30.99%) for RHI is well above the current ROIC(10.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 19.31% | ||
| ROIC | 10.55% |
ROA(3y)18.71%
ROA(5y)17.55%
ROE(3y)37.06%
ROE(5y)35.26%
ROIC(3y)30.99%
ROIC(5y)27.87%
1.3 Margins
RHI's Profit Margin of 4.84% is fine compared to the rest of the industry. RHI outperforms 62.03% of its industry peers.
In the last couple of years the Profit Margin of RHI has declined.
RHI has a Operating Margin of 4.14%. This is comparable to the rest of the industry: RHI outperforms 41.77% of its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
RHI has a Gross Margin (38.99%) which is comparable to the rest of the industry.
RHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.14% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.99% |
OM growth 3Y2.45%
OM growth 5Y-6.78%
PM growth 3Y2.37%
PM growth 5Y-2.99%
GM growth 3Y0.75%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHI is creating value.
The number of shares outstanding for RHI has been reduced compared to 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
An Altman-Z score of 5.60 indicates that RHI is not in any danger for bankruptcy at the moment.
RHI has a Altman-Z score of 5.60. This is amongst the best in the industry. RHI outperforms 87.34% 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 | 5.6 |
ROIC/WACC1.13
WACC9.34%
2.3 Liquidity
RHI has a Current Ratio of 1.72. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
RHI has a better Current ratio (1.72) than 65.82% of its industry peers.
A Quick Ratio of 1.72 indicates that RHI should not have too much problems paying its short term obligations.
RHI's Quick ratio of 1.72 is fine compared to the rest of the industry. RHI outperforms 67.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.87%.
The Earnings Per Share has been growing slightly by 1.51% on average over the past years.
RHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.44%.
Measured over the past years, RHI shows a small growth in Revenue. The Revenue has been growing by 1.96% on average per year.
EPS 1Y (TTM)-37.87%
EPS 3Y12.61%
EPS 5Y1.51%
EPS Q2Q%-28.89%
Revenue 1Y (TTM)-11.44%
Revenue growth 3Y7.76%
Revenue growth 5Y1.96%
Sales Q2Q%-6.32%
3.2 Future
RHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.60% yearly.
RHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y-35.62%
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
EPS Next 5Y15.6%
Revenue Next Year-9.15%
Revenue Next 2Y-3.52%
Revenue Next 3Y0.11%
Revenue Next 5Y5.49%
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
A Price/Earnings ratio of 26.02 indicates a quite expensive valuation of RHI.
RHI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, RHI is valued at the same level.
With a Price/Forward Earnings ratio of 24.08, RHI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RHI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RHI to the average of the S&P500 Index (24.44), we can say RHI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 24.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI indicates a slightly more expensive valuation: RHI is more expensive than 62.03% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RHI is valued a bit cheaper than 60.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.26 | ||
| EV/EBITDA | 22.83 |
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)17.19
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
RHI's Dividend Yield is rather good when compared to the industry average which is at 1.82. RHI pays more dividend than 96.20% of the companies in the same industry.
RHI's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
The dividend of RHI is nicely growing with an annual growth rate of 11.53%!
RHI has been paying a dividend for at least 10 years, so it has a reliable track record.
RHI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.53%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
76.22% 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.
DP76.22%
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
ROBERT HALF INC
NYSE:RHI (1/21/2025, 8:23:57 PM)
After market: 71.3 0 (0%)71.3
+0.38 (+0.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.21%
Inst Owner Change-0.02%
Ins Owners1.72%
Ins Owner Change-0.36%
Market Cap7.36B
Analysts51
Price Target68.24 (-4.29%)
Short Float %6.88%
Short Ratio7.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend1.93
Dividend Growth(5Y)11.53%
DP76.22%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.32%
Min EPS beat(2)-7.38%
Max EPS beat(2)2.73%
EPS beat(4)1
Avg EPS beat(4)-1.5%
Min EPS beat(4)-7.38%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-1.14%
EPS beat(12)4
Avg EPS beat(12)-0.84%
EPS beat(16)8
Avg EPS beat(16)4.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.41%
Revenue beat(12)2
Avg Revenue beat(12)-1.42%
Revenue beat(16)6
Avg Revenue beat(16)0.06%
PT rev (1m)3.4%
PT rev (3m)3.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.84%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.02 | ||
| Fwd PE | 24.08 | ||
| P/S | 1.25 | ||
| P/FCF | 23.26 | ||
| P/OCF | 19.88 | ||
| P/B | 4.99 | ||
| P/tB | 5.96 | ||
| EV/EBITDA | 22.83 |
EPS(TTM)2.74
EY3.84%
EPS(NY)2.96
Fwd EY4.15%
FCF(TTM)3.07
FCFY4.3%
OCF(TTM)3.59
OCFY5.03%
SpS57.01
BVpS14.27
TBVpS11.95
PEG (NY)N/A
PEG (5Y)17.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 19.31% | ||
| ROCE | 14.58% | ||
| ROIC | 10.55% | ||
| ROICexc | 16.01% | ||
| ROICexgc | 20.46% | ||
| OM | 4.14% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.99% | ||
| FCFM | 5.38% |
ROA(3y)18.71%
ROA(5y)17.55%
ROE(3y)37.06%
ROE(5y)35.26%
ROIC(3y)30.99%
ROIC(5y)27.87%
ROICexc(3y)50.67%
ROICexc(5y)43.17%
ROICexgc(3y)65.63%
ROICexgc(5y)55.65%
ROCE(3y)42.84%
ROCE(5y)38.53%
ROICexcg growth 3Y5.82%
ROICexcg growth 5Y-10.52%
ROICexc growth 3Y6.47%
ROICexc growth 5Y-9.72%
OM growth 3Y2.45%
OM growth 5Y-6.78%
PM growth 3Y2.37%
PM growth 5Y-2.99%
GM growth 3Y0.75%
GM growth 5Y-0.63%
F-Score5
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 99.98% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.45% | ||
| Profit Quality | 111.22% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 5.6 |
F-Score5
WACC9.34%
ROIC/WACC1.13
Cap/Depr(3y)92.12%
Cap/Depr(5y)83.91%
Cap/Sales(3y)0.71%
Cap/Sales(5y)0.75%
Profit Quality(3y)111.01%
Profit Quality(5y)123.62%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.87%
EPS 3Y12.61%
EPS 5Y1.51%
EPS Q2Q%-28.89%
EPS Next Y-35.62%
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
EPS Next 5Y15.6%
Revenue 1Y (TTM)-11.44%
Revenue growth 3Y7.76%
Revenue growth 5Y1.96%
Sales Q2Q%-6.32%
Revenue Next Year-9.15%
Revenue Next 2Y-3.52%
Revenue Next 3Y0.11%
Revenue Next 5Y5.49%
EBIT growth 1Y-57.33%
EBIT growth 3Y10.4%
EBIT growth 5Y-4.95%
EBIT Next Year-27.86%
EBIT Next 3Y3.6%
EBIT Next 5Y13.69%
FCF growth 1Y-44.07%
FCF growth 3Y1.63%
FCF growth 5Y2.21%
OCF growth 1Y-40.88%
OCF growth 3Y2.21%
OCF growth 5Y2.16%