ROBERT HALF INC (RHI) Stock Fundamental Analysis
NYSE:RHI - New York Stock Exchange, Inc. - US7703231032 - Common Stock - Currency: USD
RHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While RHI has a great health rating, its profitability is only average at the moment. RHI has a decent growth rate and is not valued too expensively. Finally RHI also has an excellent dividend rating. These ratings would make RHI suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year RHI was profitable.
In the past year RHI had a positive cash flow from operations.
Each year in the past 5 years RHI has been profitable.
Each year in the past 5 years RHI had a positive operating cash flow.
1.2 Ratios
RHI has a Return On Assets of 8.81%. This is in the better half of the industry: RHI outperforms 77.22% of its industry peers.
The Return On Equity of RHI (18.26%) is better than 64.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.90%, RHI is in the better half of the industry, outperforming 67.09% 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 13.65%.
The last Return On Invested Capital (10.90%) 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 | 8.81% | ||
| ROE | 18.26% | ||
| ROIC | 10.9% |
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
With a Profit Margin value of 4.34%, RHI perfoms like the industry average, outperforming 58.23% of the companies in the same industry.
RHI's Profit Margin has declined in the last couple of years.
RHI has a Operating Margin of 4.17%. 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 of 38.77%. This is comparable to the rest of the industry: RHI outperforms 51.90% of its industry peers.
In the last couple of years the Gross Margin of RHI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.17% | ||
| PM (TTM) | 4.34% | ||
| GM | 38.77% |
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 5.19. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
RHI has a better Altman-Z score (5.19) than 84.81% of its industry peers.
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 | 5.19 |
ROIC/WACC1.2
WACC9.06%
2.3 Liquidity
RHI has a Current Ratio of 1.66. 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 decent Current ratio value of 1.66, RHI is doing good in the industry, outperforming 64.56% of the companies in the same industry.
A Quick Ratio of 1.66 indicates that RHI should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.66, RHI is doing good in the industry, outperforming 65.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for RHI have decreased strongly by -36.95% 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.
Looking at the last year, RHI shows a decrease in Revenue. The Revenue has decreased by -9.33% in the last year.
RHI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.93% yearly.
EPS 1Y (TTM)-36.95%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-36.14%
Revenue 1Y (TTM)-9.33%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.15%
3.2 Future
Based on estimates for the next years, RHI will show a very strong growth in Earnings Per Share. The EPS will grow by 28.18% on average per year.
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 Y6.24%
EPS Next 2Y22.83%
EPS Next 3Y27.86%
EPS Next 5Y28.18%
Revenue Next Year1.5%
Revenue Next 2Y4.83%
Revenue Next 3Y5.92%
Revenue Next 5Y8.52%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 24.59, which indicates a rather expensive current valuation of RHI.
The rest of the industry has a similar Price/Earnings ratio as RHI.
RHI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
RHI is valuated rather expensively with a Price/Forward Earnings ratio of 23.15.
The rest of the industry has a similar Price/Forward Earnings ratio as RHI.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, RHI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 23.15 |
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.
RHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RHI is cheaper than 70.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.49 | ||
| EV/EBITDA | 19.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RHI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RHI's earnings are expected to grow with 27.86% in the coming years.
PEG (NY)3.94
PEG (5Y)N/A
EPS Next 2Y22.83%
EPS Next 3Y27.86%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 3.93%. 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 1.92. RHI pays more dividend than 97.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.32%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
87.60% 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.
DP87.6%
EPS Next 2Y22.83%
EPS Next 3Y27.86%
60
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.2%
Inst Owner Change2.08%
Ins Owners1.74%
Ins Owner Change-0.33%
Market Cap6.20B
Analysts52
Price Target71.57 (19.28%)
Short Float %9.08%
Short Ratio8.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP87.6%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.8%
Min EPS beat(2)-4.32%
Max EPS beat(2)2.73%
EPS beat(4)1
Avg EPS beat(4)-2.54%
Min EPS beat(4)-7.38%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-1.63%
EPS beat(12)3
Avg EPS beat(12)-1.48%
EPS beat(16)7
Avg EPS beat(16)2.64%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.19%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.36%
Revenue beat(12)1
Avg Revenue beat(12)-1.75%
Revenue beat(16)5
Avg Revenue beat(16)-0.38%
PT rev (1m)4.88%
PT rev (3m)8.45%
EPS NQ rev (1m)-35.08%
EPS NQ rev (3m)-53.4%
EPS NY rev (1m)-12.46%
EPS NY rev (3m)-12.46%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)-9.33%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 23.15 | ||
| P/S | 1.07 | ||
| P/FCF | 17.49 | ||
| P/OCF | 15.09 | ||
| P/B | 4.5 | ||
| P/tB | 5.44 | ||
| EV/EBITDA | 19.19 |
EPS(TTM)2.44
EY4.07%
EPS(NY)2.59
Fwd EY4.32%
FCF(TTM)3.43
FCFY5.72%
OCF(TTM)3.98
OCFY6.63%
SpS56.13
BVpS13.35
TBVpS11.04
PEG (NY)3.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.81% | ||
| ROE | 18.26% | ||
| ROCE | 15.39% | ||
| ROIC | 10.9% | ||
| ROICexc | 16.59% | ||
| ROICexgc | 21.58% | ||
| OM | 4.17% | ||
| PM (TTM) | 4.34% | ||
| GM | 38.77% | ||
| FCFM | 6.11% |
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 Turnover2.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.72% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 887.77 | ||
| Cash Conversion | 139.26% | ||
| Profit Quality | 140.76% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 5.19 |
F-Score5
WACC9.06%
ROIC/WACC1.2
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)-36.95%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-36.14%
EPS Next Y6.24%
EPS Next 2Y22.83%
EPS Next 3Y27.86%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-9.33%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.15%
Revenue Next Year1.5%
Revenue Next 2Y4.83%
Revenue Next 3Y5.92%
Revenue Next 5Y8.52%
EBIT growth 1Y-48.02%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year22.63%
EBIT Next 3Y29.15%
EBIT Next 5Y25.83%
FCF growth 1Y-40.08%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-35.55%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%