ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - NYSE:RHI - US7703231032 - Common Stock
26.15 USD
-0.52 (-1.95%)
26.15 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RHI. RHI was compared to 87 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 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.
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's Return On Assets of 5.46% is fine compared to the rest of the industry. RHI outperforms 60.92% of its industry peers.
RHI has a Return On Equity (12.09%) which is in line with its industry peers.
The Return On Invested Capital of RHI (5.66%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RHI is in line with the industry average of 22.56%.
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
Looking at the Profit Margin, with a value of 2.85%, RHI is in line with its industry, outperforming 49.43% of the companies in the same industry.
RHI's Profit Margin has declined in the last couple of years.
RHI has a Operating Margin (2.17%) which is in line with its industry peers.
RHI's Operating Margin has declined in the last couple of years.
RHI has a Gross Margin (37.53%) which 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
An Altman-Z score of 3.42 indicates that RHI is not in any danger for bankruptcy at the moment.
RHI's Altman-Z score of 3.42 is fine compared to the rest of the industry. RHI outperforms 67.82% 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 | 3.42 |
ROIC/WACC0.65
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.55 indicates that RHI should not have too much problems paying its short term obligations.
The Current ratio of RHI (1.55) is comparable to the rest of the 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.
With a Quick ratio value of 1.55, RHI perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The earnings per share for RHI have decreased strongly by -43.80% in the last year.
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 -7.27%.
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-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
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 16.98 indicates a correct valuation of RHI.
Compared to the rest of the industry, the Price/Earnings ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 63.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.56, RHI is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.06, which indicates a correct valuation of RHI.
Based on the Price/Forward Earnings ratio, RHI is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
RHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 14.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RHI is valued a bit cheaper than the industry average as 64.37% of the companies are valued more expensively.
RHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RHI is cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.25 | ||
| EV/EBITDA | 13.7 |
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
With a Yearly Dividend Yield of 8.59%, RHI is a good candidate for dividend investing.
In the last 3 months the price of RHI has falen by -31.08%. 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 4.28, RHI pays a better dividend. On top of this RHI pays more dividend than 97.70% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.59% |
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 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 2Y-12.7%
EPS Next 3Y6.62%
26.15
-0.52 (-1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.32%
Inst Owner Change1.02%
Ins Owners1.92%
Ins Owner Change-0.19%
Market Cap2.66B
Revenue(TTM)5.46B
Net Income(TTM)155.52M
Analysts50.53
Price Target36.04 (37.82%)
Short Float %12.39%
Short Ratio6.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.59% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP150.26%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.48%
Min EPS beat(2)-0.84%
Max EPS beat(2)1.79%
EPS beat(4)1
Avg EPS beat(4)-14.12%
Min EPS beat(4)-53.13%
Max EPS beat(4)1.79%
EPS beat(8)2
Avg EPS beat(8)-7.81%
EPS beat(12)3
Avg EPS beat(12)-5.47%
EPS beat(16)5
Avg EPS beat(16)-4.16%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-4.93%
Max Revenue beat(4)0.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.52%
PT rev (1m)-18.77%
PT rev (3m)-19.24%
EPS NQ rev (1m)-30.45%
EPS NQ rev (3m)-30.45%
EPS NY rev (1m)-7.76%
EPS NY rev (3m)-21.97%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.98 | ||
| Fwd PE | 14.06 | ||
| P/S | 0.49 | ||
| P/FCF | 11.25 | ||
| P/OCF | 9.1 | ||
| P/B | 2.07 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 13.7 |
EPS(TTM)1.54
EY5.89%
EPS(NY)1.86
Fwd EY7.11%
FCF(TTM)2.33
FCFY8.89%
OCF(TTM)2.87
OCFY10.99%
SpS53.65
BVpS12.64
TBVpS10.15
PEG (NY)N/A
PEG (5Y)N/A
Graham Number20.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 12.09% | ||
| ROCE | 8% | ||
| ROIC | 5.66% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 9.73% | ||
| OM | 2.17% | ||
| PM (TTM) | 2.85% | ||
| GM | 37.53% | ||
| FCFM | 4.33% |
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 Turnover1.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 105.35% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 170.55% | ||
| Profit Quality | 152.1% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 3.42 |
F-Score5
WACC8.78%
ROIC/WACC0.65
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-51.4%
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-65.1%
FCF growth 3Y-14.5%
FCF growth 5Y-5.1%
OCF growth 1Y-59.66%
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 16.98 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.