ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
29.02 USD
+0.56 (+1.97%)
29.11 USD
+0.09 (+0.31%)
RHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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
In the past year RHI was profitable.
In the past year RHI had a positive cash flow from operations.
RHI had positive earnings in each of the past 5 years.
RHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RHI has a Return On Assets of 5.46%. This is in the better half of the industry: RHI outperforms 60.47% of its industry peers.
Looking at the Return On Equity, with a value of 12.09%, RHI is in line with its industry, outperforming 59.30% of the companies in the same industry.
RHI has a Return On Invested Capital (5.66%) which is in line with 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 11.80%.
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
The Profit Margin of RHI (2.85%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of RHI has declined.
RHI has a Operating Margin (2.17%) which is in line with its industry peers.
In the last couple of years the Operating Margin of RHI has declined.
RHI's Gross Margin of 37.53% is in line compared to the rest of the industry. RHI outperforms 52.33% 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
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
RHI has an Altman-Z score of 3.50. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
RHI's Altman-Z score of 3.50 is fine compared to the rest of the industry. RHI outperforms 68.60% 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 | 3.5 |
ROIC/WACC0.64
WACC8.82%
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.
A Quick Ratio of 1.55 indicates that RHI should not have too much problems paying its short term obligations.
RHI has a Quick ratio (1.55) which is comparable to the rest of the 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.
The Earnings Per Share has been decreasing by -8.95% on average over the past years.
The Revenue has decreased by -7.27% in the past year.
Measured over the past years, RHI shows a decrease in Revenue. The Revenue has been decreasing by -0.93% on average per year.
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.
Based on estimates for the next years, RHI will show a quite strong growth in Revenue. The Revenue will grow by 8.52% on average per year.
EPS Next Y-45.06%
EPS Next 2Y-15.51%
EPS Next 3Y2.27%
EPS Next 5Y28.18%
Revenue Next Year-7.46%
Revenue Next 2Y-3.35%
Revenue Next 3Y0.11%
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
The Price/Earnings ratio is 18.84, which indicates a rather expensive current valuation of RHI.
RHI's Price/Earnings ratio is a bit cheaper when compared to the industry. RHI is cheaper than 65.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of RHI to the average of the S&P500 Index (27.19), we can say RHI is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.66 indicates a correct valuation of RHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RHI indicates a somewhat cheap valuation: RHI is cheaper than 63.95% of the companies listed in the same industry.
RHI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 16.66 |
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 60.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RHI is valued cheaply inside the industry as 82.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.41 | ||
| EV/EBITDA | 15 |
4.3 Compensation for Growth
The decent profitability rating of RHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.51%
EPS Next 3Y2.27%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 8.29%, which is a nice return.
Compared to an average industry Dividend Yield of 1.48, RHI pays a better dividend. On top of this RHI pays more dividend than 96.51% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, RHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.29% |
5.2 History
The dividend of RHI is nicely growing with an annual growth rate of 11.32%!
RHI has paid a dividend for at least 10 years, which is 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
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-15.51%
EPS Next 3Y2.27%
29.02
+0.56 (+1.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners108.4%
Inst Owner Change0.29%
Ins Owners1.93%
Ins Owner Change-0.1%
Market Cap2.94B
Revenue(TTM)5.46B
Net Income(TTM)155.52M
Analysts49.47
Price Target31.39 (8.17%)
Short Float %12.59%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.29% |
Yearly Dividend2.13
Dividend Growth(5Y)11.32%
DP150.26%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
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)-11.22%
PT rev (3m)-29.25%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-30.7%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-8.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.84 | ||
| Fwd PE | 16.66 | ||
| P/S | 0.54 | ||
| P/FCF | 12.41 | ||
| P/OCF | 10.05 | ||
| P/B | 2.28 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 15 |
EPS(TTM)1.54
EY5.31%
EPS(NY)1.74
Fwd EY6%
FCF(TTM)2.34
FCFY8.06%
OCF(TTM)2.89
OCFY9.95%
SpS53.94
BVpS12.71
TBVpS10.2
PEG (NY)N/A
PEG (5Y)N/A
Graham Number20.99
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 | 3.5 |
F-Score5
WACC8.82%
ROIC/WACC0.64
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-45.06%
EPS Next 2Y-15.51%
EPS Next 3Y2.27%
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-7.46%
Revenue Next 2Y-3.35%
Revenue Next 3Y0.11%
Revenue Next 5Y8.52%
EBIT growth 1Y-51.4%
EBIT growth 3Y-31.23%
EBIT growth 5Y-15.65%
EBIT Next Year-28.73%
EBIT Next 3Y7.33%
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.
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 -45.06% 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%.