ROBERT HALF INC (RHI) Stock Fundamental Analysis
NYSE:RHI - New York Stock Exchange, Inc. - US7703231032 - Common Stock - Currency: USD
Taking everything into account, RHI scores 6 out of 10 in our fundamental rating. RHI was compared to 81 industry peers in the Professional Services industry. RHI has an excellent financial health rating, but there are some minor concerns on its profitability. 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
In the past year RHI was profitable.
RHI had a positive operating cash flow in the past year.
Each year in the past 5 years RHI has been profitable.
In the past 5 years RHI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RHI (7.61%) is better than 72.84% of its industry peers.
With a decent Return On Equity value of 15.63%, RHI is doing good in the industry, outperforming 61.73% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.26%, RHI is doing good in the industry, outperforming 70.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 12.53%.
The last Return On Invested Capital (11.26%) 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 | 7.61% | ||
| ROE | 15.63% | ||
| ROIC | 11.26% |
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
Looking at the Profit Margin, with a value of 3.62%, RHI is in line with its industry, outperforming 53.09% of the companies in the same industry.
In the last couple of years the Profit Margin of RHI has declined.
The Operating Margin of RHI (4.22%) is comparable to the rest of the industry.
RHI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 38.50%, RHI perfoms like the industry average, outperforming 55.56% 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 | 4.22% | ||
| PM (TTM) | 3.62% | ||
| GM | 38.5% |
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.
The number of shares outstanding for RHI has been reduced compared to 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 4.65. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
RHI has a Altman-Z score of 4.65. This is amongst the best in the industry. RHI outperforms 80.25% 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 | 4.65 |
ROIC/WACC1.26
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.65 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a Current ratio of 1.65. This is in the better half of the industry: RHI outperforms 62.96% of its industry peers.
A Quick Ratio of 1.65 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a Quick ratio of 1.65. This is in the better half of the industry: RHI outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.12%.
The Earnings Per Share has been decreasing by -8.95% on average over the past years.
Looking at the last year, RHI shows a decrease in Revenue. The Revenue has decreased by -7.81% in the last year.
The Revenue has been decreasing by -0.93% on average over the past years.
EPS 1Y (TTM)-40.12%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-72.13%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-8.4%
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 Y-28.76%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
EPS Next 5Y28.18%
Revenue Next Year-6.3%
Revenue Next 2Y-0.63%
Revenue Next 3Y2.52%
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 21.43, which indicates a rather expensive current 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 27.45, RHI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.84, the valuation of RHI can be described as correct.
Based on the Price/Forward Earnings ratio, RHI is valued a bit cheaper than 65.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. RHI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 15.84 |
4.2 Price Multiples
64.20% of the companies in the same industry are more expensive than RHI, based on the Enterprise Value to EBITDA ratio.
72.84% of the companies in the same industry are more expensive than RHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
The decent profitability rating of RHI may justify a higher PE ratio.
RHI's earnings are expected to grow with 18.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.3%
EPS Next 3Y18.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.70%, RHI is a good candidate for dividend investing.
RHI's Dividend Yield is rather good when compared to the industry average which is at 2.12. RHI pays more dividend than 98.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
5.2 History
On average, the dividend of RHI grows each year by 11.32%, which is quite nice.
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
RHI pays out 109.23% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP109.23%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
42.85
-0.18 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.23%
Inst Owner Change-1.63%
Ins Owners1.91%
Ins Owner Change3.64%
Market Cap4.38B
Analysts53
Price Target46.67 (8.91%)
Short Float %11.91%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP109.23%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.72%
Min EPS beat(2)-53.13%
Max EPS beat(2)-4.32%
EPS beat(4)1
Avg EPS beat(4)-15.52%
Min EPS beat(4)-53.13%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-8.24%
EPS beat(12)2
Avg EPS beat(12)-6.16%
EPS beat(16)6
Avg EPS beat(16)-2.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)-1.19%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.87%
Revenue beat(12)1
Avg Revenue beat(12)-2.13%
Revenue beat(16)4
Avg Revenue beat(16)-0.86%
PT rev (1m)-7.47%
PT rev (3m)-33.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.43 | ||
| Fwd PE | 15.84 | ||
| P/S | 0.77 | ||
| P/FCF | 14.12 | ||
| P/OCF | 11.93 | ||
| P/B | 3.33 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)2
EY4.67%
EPS(NY)2.71
Fwd EY6.31%
FCF(TTM)3.04
FCFY7.08%
OCF(TTM)3.59
OCFY8.38%
SpS55.52
BVpS12.85
TBVpS10.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.61% | ||
| ROE | 15.63% | ||
| ROCE | 15.89% | ||
| ROIC | 11.26% | ||
| ROICexc | 14.57% | ||
| ROICexgc | 18.32% | ||
| OM | 4.22% | ||
| PM (TTM) | 3.62% | ||
| GM | 38.5% | ||
| FCFM | 5.47% |
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 Turnover2.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 106.87% | ||
| Cap/Sales | 1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 125.39% | ||
| Profit Quality | 151.09% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 4.65 |
F-Score5
WACC8.93%
ROIC/WACC1.26
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)-40.12%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-72.13%
EPS Next Y-28.76%
EPS Next 2Y5.3%
EPS Next 3Y18.48%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-8.4%
Revenue Next Year-6.3%
Revenue Next 2Y-0.63%
Revenue Next 3Y2.52%
Revenue Next 5Y8.52%
EBIT growth 1Y-35.05%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year-11.31%
EBIT Next 3Y20.98%
EBIT Next 5Y25.83%
FCF growth 1Y-50.35%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-46.03%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%