ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
27.75 USD
-0.58 (-2.05%)
27.75 USD
0 (0%)
Taking everything into account, RHI scores 6 out of 10 in our fundamental rating. RHI was compared to 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 decent growth rate and is not valued too expensively. Finally RHI also has an excellent dividend rating. These ratings would make RHI suitable 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.
- 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
- RHI has a better Return On Assets (5.46%) than 60.92% of its industry peers.
- RHI's Return On Equity of 12.09% is in line compared to the rest of the industry. RHI outperforms 59.77% of its industry peers.
- RHI has a Return On Invested Capital (5.66%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for RHI is significantly above the industry average of 11.85%.
- 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.
- RHI's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 2.17%, RHI perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
- RHI's Operating Margin has declined in the last couple of years.
- The Gross Margin of RHI (37.53%) is comparable to the rest of the industry.
- 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%
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.
- Compared to 5 years ago, RHI has less shares outstanding
- 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
- RHI has an Altman-Z score of 3.47. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
- RHI has a Altman-Z score of 3.47. This is in the better half 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 | 3.47 |
ROIC/WACC0.64
WACC8.88%
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 54.02% of the companies in the same industry.
- 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 has a Quick ratio (1.55) which is in line with 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%.
- RHI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.95% yearly.
- 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
- RHI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.18% yearly.
- The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y-45.53%
EPS Next 2Y-16.82%
EPS Next 3Y1.74%
EPS Next 5Y28.18%
Revenue Next Year-7.48%
Revenue Next 2Y-3.45%
Revenue Next 3Y0.01%
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.
- 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
- RHI is valuated rather expensively with a Price/Earnings ratio of 18.02.
- 65.52% of the companies in the same industry are more expensive than RHI, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, RHI is valued a bit cheaper.
- The Price/Forward Earnings ratio is 16.44, which indicates a correct valuation of RHI.
- 65.52% of the companies in the same industry are more expensive than RHI, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of RHI to the average of the S&P500 Index (25.98), we can say RHI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 16.44 |
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 63.22% of the companies listed in the same industry.
- 82.76% 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 | 11.87 | ||
| EV/EBITDA | 14.6 |
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)N/A
EPS Next 2Y-16.82%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
- RHI has a Yearly Dividend Yield of 8.23%, which is a nice return.
- RHI's Dividend Yield is rather good when compared to the industry average which is at 1.44. RHI pays more dividend than 96.55% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.23% |
5.2 History
- On average, the dividend of RHI grows each year by 11.32%, which is quite nice.
- RHI has paid a dividend for at least 10 years, which is 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
- RHI pays out 150.26% of its income as dividend. 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-16.82%
EPS Next 3Y1.74%
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.
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 6 / 10.
What is the earnings growth outlook for ROBERT HALF INC?
The Earnings per Share (EPS) of ROBERT HALF INC (RHI) is expected to decline by -45.53% 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%.