ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
27.9 USD
-0.67 (-2.35%)
RHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 is not valued too expensively and it also shows a decent growth rate. RHI also has an excellent dividend rating. These ratings could make RHI a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- RHI had positive earnings in the past year.
- RHI had a positive operating cash flow in the past year.
- RHI had positive earnings in each of the past 5 years.
- RHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RHI has a Return On Assets of 5.46%. This is in the better half of the industry: RHI outperforms 60.92% of its industry peers.
- RHI has a Return On Equity (12.09%) which is comparable to the rest of the industry.
- RHI has a Return On Invested Capital of 5.66%. This is comparable 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 (2.85%) which is comparable to the rest of the industry.
- RHI's Profit Margin has declined in the last couple of years.
- RHI has a Operating Margin of 2.17%. This is comparable to the rest of the industry: RHI outperforms 44.83% of its industry peers.
- In the last couple of years the Operating Margin of RHI has declined.
- 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.
- 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.
2.2 Solvency
- RHI has an Altman-Z score of 3.48. 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 3.48, RHI is in the better half of the industry, outperforming 66.67% 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 | 3.48 |
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.
- Looking at the Current ratio, with a value of 1.55, RHI is in line with its industry, outperforming 54.02% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.55, RHI is in line with its industry, 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.
- RHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.95% yearly.
- 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.
- RHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.52% yearly.
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
- With a Price/Earnings ratio of 18.12, RHI is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 65.52% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RHI is valued a bit cheaper.
- A Price/Forward Earnings ratio of 16.53 indicates a correct valuation of RHI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 65.52% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. RHI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.12 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
- 62.07% of the companies in the same industry are more expensive than RHI, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHI indicates a rather cheap valuation: RHI is cheaper than 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.93 | ||
| EV/EBITDA | 14.74 |
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-16.82%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.23%, RHI is a good candidate for dividend investing.
- 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 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
- 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-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%.