ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - NYSE:RHI - US7703231032 - Common Stock
31.35 USD
-0.69 (-2.15%)
31.35 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RHI. RHI was compared to 83 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 not valued too expensively and it also shows a decent growth rate. Finally 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.
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
The Return On Assets of RHI (6.29%) is better than 66.28% of its industry peers.
RHI has a Return On Equity of 13.57%. This is in the better half of the industry: RHI outperforms 66.28% of its industry peers.
RHI has a Return On Invested Capital of 7.76%. This is comparable to the rest of the industry: RHI outperforms 54.65% 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 13.40%.
The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(7.76%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 3.20%, RHI is in line with its industry, outperforming 52.33% of the companies in the same industry.
In the last couple of years the Profit Margin of RHI has declined.
RHI has a Operating Margin (2.97%) which is in line with its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
The Gross Margin of RHI (38.00%) is comparable to the rest of the 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 | 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
RHI has less shares outstanding than it did 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
RHI has an Altman-Z score of 3.74. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.74, RHI is doing good in the industry, outperforming 67.44% of the companies in the same industry.
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 | 3.74 |
ROIC/WACC0.9
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.57 indicates that RHI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, RHI is in line with its industry, outperforming 56.98% of the companies in the same industry.
A Quick Ratio of 1.57 indicates that RHI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.57, RHI perfoms like the industry average, outperforming 59.30% of the companies in the same industry.
| 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 -41.67%.
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 -6.95%.
The Revenue has been decreasing by -0.93% on average over the past years.
EPS 1Y (TTM)-41.67%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-37.88%
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.98%
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.
The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.
EPS Next Y-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
EPS Next 5Y28.18%
Revenue Next Year-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
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
The Price/Earnings ratio is 17.91, which indicates a rather expensive current valuation of RHI.
Based on the Price/Earnings ratio, RHI is valued a bit cheaper than the industry average as 63.95% of the companies are valued more expensively.
RHI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
RHI is valuated correctly with a Price/Forward Earnings ratio of 14.14.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 68.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, RHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 14.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHI is valued a bit cheaper than 65.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RHI is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 12.82 |
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-4.69%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 7.37%, which is a nice return.
In the last 3 months the price of RHI has falen by -25.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.95, RHI pays a better dividend. On top of this RHI pays more dividend than 98.84% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
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 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
RHI pays out 128.51% 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.
DP128.51%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
31.35
-0.69 (-2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change0.18%
Ins Owners1.92%
Ins Owner Change0.62%
Market Cap3.19B
Analysts50.53
Price Target44.37 (41.53%)
Short Float %12.84%
Short Ratio6.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
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)0%
PT rev (3m)-4.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.91 | ||
| Fwd PE | 14.14 | ||
| P/S | 0.57 | ||
| P/FCF | 11.2 | ||
| P/OCF | 9.26 | ||
| P/B | 2.43 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | 12.82 |
EPS(TTM)1.75
EY5.58%
EPS(NY)2.22
Fwd EY7.07%
FCF(TTM)2.8
FCFY8.93%
OCF(TTM)3.39
OCFY10.8%
SpS54.74
BVpS12.89
TBVpS10.4
PEG (NY)N/A
PEG (5Y)N/A
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%
ROICexcg growth 3Y-32.53%
ROICexcg 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 | 3.74 |
F-Score5
WACC8.66%
ROIC/WACC0.9
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)-41.67%
EPS 3Y-23.03%
EPS 5Y-8.95%
EPS Q2Q%-37.88%
EPS Next Y-39.73%
EPS Next 2Y-4.69%
EPS Next 3Y11.35%
EPS Next 5Y28.18%
Revenue 1Y (TTM)-6.95%
Revenue growth 3Y-3.56%
Revenue growth 5Y-0.93%
Sales Q2Q%-6.98%
Revenue Next Year-7.07%
Revenue Next 2Y-2.01%
Revenue Next 3Y1.4%
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%