ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
27.27 USD
+1.52 (+5.9%)
27.27 USD
0 (0%)
Overall RHI gets a fundamental rating of 6 out of 10. We evaluated RHI against 87 industry peers in the Professional Services industry. RHI has an excellent financial health rating, but there are some minor concerns on its profitability. RHI has a correct valuation and a medium 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.
In the past 5 years RHI has always 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 5.46%. This is in the better half of the industry: RHI outperforms 60.92% of its industry peers.
The Return On Equity of RHI (12.09%) is comparable to the rest of the industry.
RHI's Return On Invested Capital of 5.66% is in line compared to the rest of the industry. RHI outperforms 49.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is in line with the industry average of 22.56%.
The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(5.66%). The reason for the recent decline needs to be investigated.
| 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.
In the last couple of years the Profit Margin of RHI has declined.
RHI has a Operating Margin (2.17%) which is comparable to the rest of the industry.
RHI's Operating Margin has declined in the last couple of years.
RHI has a Gross Margin (37.53%) which is in line with 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 | 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
RHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RHI has less shares outstanding
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 3.38. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
RHI's Altman-Z score of 3.38 is fine compared to the rest of the industry. RHI outperforms 66.67% 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 | 3.38 |
ROIC/WACC0.65
WACC8.7%
2.3 Liquidity
RHI has a Current 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 Current ratio, with a value of 1.55, RHI is in line with its industry, outperforming 55.17% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that RHI should not have too much problems paying its short term obligations.
RHI's Quick ratio of 1.55 is in line compared to the rest of the industry. RHI outperforms 56.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.80%.
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%.
RHI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.93% yearly.
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
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.
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-44.41%
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
EPS Next 5Y28.18%
Revenue Next Year-7.41%
Revenue Next 2Y-3.34%
Revenue Next 3Y0.32%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.71, 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 64.37% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. RHI is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.67 indicates a correct valuation of RHI.
Based on the Price/Forward Earnings ratio, RHI is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
RHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHI is valued a bit cheaper than 65.52% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 79.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.73 | ||
| EV/EBITDA | 13.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.17%, RHI is a good candidate for dividend investing.
In the last 3 months the price of RHI has falen by -28.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RHI's Dividend Yield is rather good when compared to the industry average which is at 4.28. RHI pays more dividend than 97.70% of the companies in the same industry.
RHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
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
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-12.7%
EPS Next 3Y6.62%
27.27
+1.52 (+5.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change1.02%
Ins Owners1.92%
Ins Owner Change-0.19%
Market Cap2.77B
Revenue(TTM)5.46B
Net Income(TTM)155.52M
Analysts50.53
Price Target35.81 (31.32%)
Short Float %10.88%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.17% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP150.26%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.48%
Min EPS beat(2)-0.84%
Max EPS beat(2)1.79%
EPS beat(4)1
Avg EPS beat(4)-14.12%
Min EPS beat(4)-53.13%
Max EPS beat(4)1.79%
EPS beat(8)2
Avg EPS beat(8)-7.81%
EPS beat(12)3
Avg EPS beat(12)-5.47%
EPS beat(16)5
Avg EPS beat(16)-4.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.52%
PT rev (1m)-18.77%
PT rev (3m)-19.24%
EPS NQ rev (1m)-30.45%
EPS NQ rev (3m)-30.45%
EPS NY rev (1m)-7.76%
EPS NY rev (3m)-21.97%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 14.67 | ||
| P/S | 0.51 | ||
| P/FCF | 11.73 | ||
| P/OCF | 9.49 | ||
| P/B | 2.16 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)1.54
EY5.65%
EPS(NY)1.86
Fwd EY6.82%
FCF(TTM)2.33
FCFY8.53%
OCF(TTM)2.87
OCFY10.53%
SpS53.65
BVpS12.64
TBVpS10.15
PEG (NY)N/A
PEG (5Y)N/A
Graham Number20.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 12.09% | ||
| ROCE | 8% | ||
| ROIC | 5.66% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 9.73% | ||
| OM | 2.17% | ||
| PM (TTM) | 2.85% | ||
| GM | 37.53% | ||
| FCFM | 4.33% |
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%
ROICexgc growth 3Y-32.53%
ROICexgc 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 Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.35% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 170.55% | ||
| Profit Quality | 152.1% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 3.38 |
F-Score5
WACC8.7%
ROIC/WACC0.65
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)-43.8%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-32.81%
EPS Next Y-44.41%
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-7.27%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-7.54%
Revenue Next Year-7.41%
Revenue Next 2Y-3.34%
Revenue Next 3Y0.32%
Revenue Next 5Y8.52%
EBIT growth 1Y-51.4%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year-22.06%
EBIT Next 3Y15.55%
EBIT Next 5Y25.83%
FCF growth 1Y-65.1%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-59.66%
OCF growth 3Y-12.04%
OCF growth 5Y-4.61%
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.
Can you provide the valuation status for ROBERT HALF INC?
ChartMill assigns a valuation rating of 4 / 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 5 / 10.
Can you provide the PE and PB ratios for RHI stock?
The Price/Earnings (PE) ratio for ROBERT HALF INC (RHI) is 17.71 and the Price/Book (PB) ratio is 2.16.
What is the expected EPS growth for ROBERT HALF INC (RHI) stock?
The Earnings per Share (EPS) of ROBERT HALF INC (RHI) is expected to decline by -44.41% in the next year.