ROBERT HALF INC (RHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RHI - US7703231032 - Common Stock
27.145 USD
-0.61 (-2.18%)
We assign a fundamental rating of 6 out of 10 to RHI. RHI was compared to 87 industry peers in the Professional Services industry. While RHI has a great health rating, its profitability is only average at the moment. RHI has a decent growth rate and is not valued too expensively. RHI also has an excellent dividend rating. With these ratings, RHI could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year RHI was profitable.
- RHI had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 5.46%, RHI is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
- 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's Return On Invested Capital of 5.66% is in line compared to the rest of the industry. RHI outperforms 50.57% 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 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
- With a Profit Margin value of 2.85%, RHI perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
- In the last couple of years the Profit Margin of RHI has declined.
- RHI's Operating Margin of 2.17% is in line compared to the rest of the industry. RHI outperforms 44.83% of its industry peers.
- RHI's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 37.53%, RHI perfoms like the industry average, outperforming 54.02% 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 | 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
- RHI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 3.45. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
- RHI's Altman-Z score of 3.45 is fine compared to the rest of the industry. RHI outperforms 65.52% 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 | 3.45 |
ROIC/WACC0.64
WACC8.86%
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.
- RHI has a Current ratio (1.55) which 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 55.17% 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.
- 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.
- The Revenue has been decreasing by -0.93% on average over the past years.
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.
- RHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.52% yearly.
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
- 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
- Based on the Price/Earnings ratio of 17.63, the valuation of RHI can be described as rather expensive.
- Based on the Price/Earnings ratio, RHI is valued a bit cheaper than 65.52% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. RHI is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 16.08, which 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 65.52% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. RHI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 16.08 |
4.2 Price Multiples
- 63.22% of the companies in the same industry are more expensive than RHI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, RHI is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 14.25 |
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-16.82%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.23%, RHI is a good candidate for dividend investing.
- 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
- 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 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%.