ROBERT HALF INC (RHI)
US7703231032 - Common Stock
RHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. RHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RHI is quite expensive at the moment. It does show a decent growth rate. RHI also has an excellent dividend rating. These ratings would make RHI suitable 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.
In the past 5 years RHI always reported a positive cash flow from operatings.
1.2 Ratios
RHI has a Return On Assets of 9.54%. This is amongst the best in the industry. RHI outperforms 80.52% of its industry peers.
With a decent Return On Equity value of 19.31%, RHI is doing good in the industry, outperforming 67.53% of the companies in the same industry.
RHI has a better Return On Invested Capital (10.55%) than 67.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 12.35%.
The last Return On Invested Capital (10.55%) for RHI is well below the 3 year average (30.99%), which needs to be investigated, but indicates that RHI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 19.31% | ||
| ROIC | 10.55% |
ROA(3y)18.71%
ROA(5y)17.55%
ROE(3y)37.06%
ROE(5y)35.26%
ROIC(3y)30.99%
ROIC(5y)27.87%
1.3 Margins
Looking at the Profit Margin, with a value of 4.84%, RHI is in the better half of the industry, outperforming 62.34% of the companies in the same industry.
RHI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.14%, RHI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
RHI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 38.99%, RHI perfoms like the industry average, outperforming 49.35% of the companies in the same industry.
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 | 4.14% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.99% |
OM growth 3Y2.45%
OM growth 5Y-6.78%
PM growth 3Y2.37%
PM growth 5Y-2.99%
GM growth 3Y0.75%
GM growth 5Y-0.63%
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.
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 5.66 indicates that RHI is not in any danger for bankruptcy at the moment.
The Altman-Z score of RHI (5.66) is better than 83.12% 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 | 5.66 |
ROIC/WACC1.17
WACC9.05%
2.3 Liquidity
RHI has a Current Ratio of 1.72. 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 Current ratio of 1.72 is fine compared to the rest of the industry. RHI outperforms 63.64% of its industry peers.
A Quick Ratio of 1.72 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a Quick ratio of 1.72. This is in the better half of the industry: RHI outperforms 64.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
The earnings per share for RHI have decreased strongly by -37.87% in the last year.
RHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.51% yearly.
RHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.44%.
RHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.96% yearly.
EPS 1Y (TTM)-37.87%
EPS 3Y12.61%
EPS 5Y1.51%
EPS Q2Q%-28.89%
Revenue 1Y (TTM)-11.44%
Revenue growth 3Y7.76%
Revenue growth 5Y1.96%
Sales Q2Q%-6.32%
3.2 Future
RHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.60% yearly.
RHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y-35.62%
EPS Next 2Y-12.52%
EPS Next 3Y1.85%
EPS Next 5Y15.6%
Revenue Next Year-9.13%
Revenue Next 2Y-3.48%
Revenue Next 3Y0.2%
Revenue Next 5Y5.49%
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
A Price/Earnings ratio of 26.90 indicates a quite expensive valuation of RHI.
Compared to the rest of the industry, the Price/Earnings ratio of RHI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RHI to the average of the S&P500 Index (28.96), we can say RHI is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.89, the valuation of RHI can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RHI.
RHI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 24.89 |
4.2 Price Multiples
RHI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RHI is more expensive than 64.94% 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 62.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.04 | ||
| EV/EBITDA | 23.28 |
4.3 Compensation for Growth
RHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)17.77
EPS Next 2Y-12.52%
EPS Next 3Y1.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, RHI has a reasonable but not impressive dividend return.
RHI's Dividend Yield is rather good when compared to the industry average which is at 1.81. RHI pays more dividend than 94.81% of the companies in the same industry.
RHI's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
The dividend of RHI is nicely growing with an annual growth rate of 11.53%!
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)11.53%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
76.22% 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.
DP76.22%
EPS Next 2Y-12.52%
EPS Next 3Y1.85%
ROBERT HALF INC
NYSE:RHI (11/21/2024, 8:04:00 PM)
After market: 73.7 0 (0%)73.7
+1.09 (+1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.9 | ||
| Fwd PE | 24.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)17.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 19.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.14% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-37.87%
EPS 3Y12.61%
EPS 5Y
EPS Q2Q%
EPS Next Y-35.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.44%
Revenue growth 3Y7.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y