ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - NYSE:RHI - US7703231032 - Common Stock
26.67 USD
-0.81 (-2.95%)
26.67 USD
0 (0%)
Taking everything into account, RHI scores 6 out of 10 in our fundamental rating. RHI was compared to 86 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. This makes RHI very considerable 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.
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 6.29%. This is in the better half of the industry: RHI outperforms 65.12% of its industry peers.
With a decent Return On Equity value of 13.57%, RHI is doing good in the industry, outperforming 63.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.76%, RHI is in line with its industry, outperforming 54.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RHI is in line with the industry average of 22.51%.
The last Return On Invested Capital (7.76%) 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 | 6.29% | ||
| ROE | 13.57% | ||
| ROIC | 7.76% |
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 3.20%, RHI perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
RHI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.97%, RHI is in line with its industry, outperforming 46.51% of the companies in the same industry.
In the last couple of years the Operating Margin of RHI has declined.
With a Gross Margin value of 38.00%, RHI perfoms like the industry average, outperforming 52.33% 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 | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% |
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.
Compared to 1 year ago, RHI has less shares outstanding
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 3.58 indicates that RHI is not in any danger for bankruptcy at the moment.
RHI has a Altman-Z score of 3.58. This is in the better half of the industry: RHI outperforms 67.44% 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 | 3.58 |
ROIC/WACC0.89
WACC8.75%
2.3 Liquidity
RHI has a Current Ratio of 1.57. 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 Current ratio (1.57) which is comparable to the rest of the industry.
A Quick Ratio of 1.57 indicates that RHI should not have too much problems paying its short term obligations.
RHI's Quick ratio of 1.57 is in line compared to the rest of the industry. RHI outperforms 59.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
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%.
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 -7.27% 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)-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
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
RHI is valuated rather expensively with a Price/Earnings ratio of 17.32.
63.95% of the companies in the same industry are more expensive than RHI, based on the Price/Earnings ratio.
RHI is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.34 indicates a correct valuation of RHI.
Based on the Price/Forward Earnings ratio, RHI is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. RHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 74.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RHI is valued cheaper than 83.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 11.03 |
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
RHI has a Yearly Dividend Yield of 9.07%, which is a nice return.
In the last 3 months the price of RHI has falen by -26.59%. 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 4.30. RHI pays more dividend than 97.67% of the companies in the same industry.
RHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.07% |
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
128.51% 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.
DP128.51%
EPS Next 2Y-12.7%
EPS Next 3Y6.62%
26.67
-0.81 (-2.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change-3.72%
Ins Owners1.92%
Ins Owner Change0.52%
Market Cap2.71B
Revenue(TTM)5.46B
Net Income(TTM)178.06M
Analysts50.53
Price Target36.04 (35.13%)
Short Float %12.39%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.07% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP128.51%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.67%
Min EPS beat(2)-53.13%
Max EPS beat(2)1.79%
EPS beat(4)2
Avg EPS beat(4)-13.23%
Min EPS beat(4)-53.13%
Max EPS beat(4)2.73%
EPS beat(8)3
Avg EPS beat(8)-6.4%
EPS beat(12)3
Avg EPS beat(12)-5.99%
EPS beat(16)6
Avg EPS beat(16)-3.61%
Revenue beat(2)1
Avg Revenue beat(2)-2.36%
Min Revenue beat(2)-4.93%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)4
Avg Revenue beat(16)-1.21%
PT rev (1m)-18.77%
PT rev (3m)-19.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-7.76%
EPS NY rev (3m)-21.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 14.34 | ||
| P/S | 0.49 | ||
| P/FCF | 9.53 | ||
| P/OCF | 7.88 | ||
| P/B | 2.07 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)1.54
EY5.77%
EPS(NY)1.86
Fwd EY6.97%
FCF(TTM)2.8
FCFY10.49%
OCF(TTM)3.39
OCFY12.69%
SpS54.74
BVpS12.89
TBVpS10.4
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.29% | ||
| ROE | 13.57% | ||
| ROCE | 10.96% | ||
| ROIC | 7.76% | ||
| ROICexc | 10.38% | ||
| ROICexgc | 13.39% | ||
| OM | 2.97% | ||
| PM (TTM) | 3.2% | ||
| GM | 38% | ||
| FCFM | 5.11% |
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%
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 Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.46% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 157.27% | ||
| Profit Quality | 159.92% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 | ||
| Altman-Z | 3.58 |
F-Score5
WACC8.75%
ROIC/WACC0.89
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-49.36%
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-58.33%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-52.7%
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 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 5 / 10.
Can you provide the PE and PB ratios for RHI stock?
The Price/Earnings (PE) ratio for ROBERT HALF INC (RHI) is 17.32 and the Price/Book (PB) ratio is 2.07.
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.