Overall RHI gets a fundamental rating of 5 out of 10. We evaluated RHI against 89 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 valued correctly, but it does not seem to be growing. RHI also has an excellent dividend rating. These ratings could make RHI a good candidate for dividend investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

RHI had positive earnings in the past year.
In the past year RHI had a positive cash flow from operations.
RHI had positive earnings in 4 of the past 5 years.
RHI had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

RHI's Return On Assets of 5.46% is fine compared to the rest of the industry. RHI outperforms 62.92% of its industry peers.
The Return On Equity of RHI (12.09%) is better than 60.67% of its industry peers.
RHI's Return On Invested Capital of 5.66% is in line compared to the rest of the industry. RHI outperforms 51.69% 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 12.02%.
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's Profit Margin of 2.85% is in line compared to the rest of the industry. RHI outperforms 53.93% of its industry peers.
In the last couple of years the Profit Margin of RHI has declined.
RHI has a Operating Margin of 2.17%. This is comparable to the rest of the industry: RHI outperforms 46.07% of its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
RHI has a Gross Margin of 37.53%. This is comparable to the rest of the industry: RHI outperforms 52.81% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RHI is creating value.
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

An Altman-Z score of 3.72 indicates that RHI is not in any danger for bankruptcy at the moment.
RHI has a better Altman-Z score (3.72) than 73.03% 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	3.72

ROIC/WACC0.64

WACC8.9%

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.
RHI has a Current ratio (1.55) which is in line with its industry peers.
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.
RHI's Quick ratio of 1.55 is in line compared to the rest of the industry. RHI outperforms 55.06% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.55
Quick Ratio	1.55

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for RHI have decreased strongly by -45.49% in the last year.
The earnings per share for RHI have been decreasing by -13.27% on average. This is quite bad

EPS 1Y (TTM)-45.49%

EPS 3Y-39.55%

EPS 5Y-13.27%

EPS Q2Q%-39.62%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-5.79%

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 46.21% on average per year.
RHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.22% yearly.

EPS Next Y26.94%

EPS Next 2Y39%

EPS Next 3Y81.78%

EPS Next 5Y46.21%

Revenue Next Year0.76%

Revenue Next 2Y3.97%

Revenue Next 3Y15.84%

Revenue Next 5Y11.22%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 26.02, RHI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RHI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.32. RHI is around the same levels.
Based on the Price/Forward Earnings ratio of 20.50, the valuation of RHI can be described as rather expensive.
RHI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, RHI is valued at the same level.

		Industry Rank	Sector Rank
PE	26.02
Fwd PE	20.5

4.2 Price Multiples

RHI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 77.53% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.81
EV/EBITDA	18.31

4.3 Compensation for Growth

RHI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RHI's earnings are expected to grow with 81.78% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.97

PEG (5Y)N/A

EPS Next 2Y39%

EPS Next 3Y81.78%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.71%, RHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.47, RHI pays a better dividend. On top of this RHI pays more dividend than 96.63% 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 1.83.

		Industry Rank	Sector Rank
Dividend Yield	8.71%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

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 2Y39%

EPS Next 3Y81.78%

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ROBERT HALF INC / RHI FAQ

What is the ChartMill fundamental rating of ROBERT HALF INC (RHI) stock?

ChartMill assigns a fundamental rating of 5 / 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 5 / 10.

What is the earnings growth outlook for ROBERT HALF INC?

The Earnings per Share (EPS) of ROBERT HALF INC (RHI) is expected to grow by 26.94% 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%.