ROBERT HALF INC (RHI)
US7703231032 - Common Stock
RHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 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. While showing a medium growth rate, RHI is valued expensive at the moment. 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.
RHI had a positive operating cash flow in the past year.
Each year in the past 5 years RHI has been profitable.
RHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RHI has a Return On Assets of 9.54%. This is in the better half of the industry: RHI outperforms 79.22% of its industry peers.
The Return On Equity of RHI (19.31%) is better than 66.23% of its industry peers.
RHI has a Return On Invested Capital of 10.55%. This is in the better half of the industry: RHI outperforms 66.23% of its industry peers.
RHI had an Average Return On Invested Capital over the past 3 years of 30.99%. This is significantly above the industry average of 18.16%.
The last Return On Invested Capital (10.55%) for RHI is well below the 3 year average (30.99%), which needs to be investigated, but indicates that RHI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 19.31% | ||
| ROIC | 10.55% |
ROA(3y)18.71%
ROA(5y)17.55%
ROE(3y)37.06%
ROE(5y)35.26%
ROIC(3y)30.99%
ROIC(5y)27.87%
1.3 Margins
RHI has a Profit Margin of 4.84%. This is in the better half of the industry: RHI outperforms 61.04% of its industry peers.
RHI's Profit Margin has declined in the last couple of years.
The Operating Margin of RHI (4.14%) is comparable to the rest of the industry.
RHI's Operating Margin has declined in the last couple of years.
RHI's Gross Margin of 38.99% is in line compared to the rest of the industry. RHI outperforms 50.65% of its industry peers.
RHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.14% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.99% |
OM growth 3Y2.45%
OM growth 5Y-6.78%
PM growth 3Y2.37%
PM growth 5Y-2.99%
GM growth 3Y0.75%
GM growth 5Y-0.63%
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.
RHI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RHI has been reduced compared to 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 5.60. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RHI (5.60) is better than 87.01% of its industry peers.
RHI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.6 |
ROIC/WACC1.13
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.72 indicates that RHI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.72, RHI is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
RHI has a Quick Ratio of 1.72. This is a normal value and indicates that RHI is financially healthy and should not expect problems in meeting its short term obligations.
RHI's Quick ratio of 1.72 is fine compared to the rest of the industry. RHI outperforms 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
RHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.87%.
The Earnings Per Share has been growing slightly by 1.51% on average over the past years.
RHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.44%.
The Revenue has been growing slightly by 1.96% on average over the past years.
EPS 1Y (TTM)-37.87%
EPS 3Y12.61%
EPS 5Y1.51%
EPS Q2Q%-28.89%
Revenue 1Y (TTM)-11.44%
Revenue growth 3Y7.76%
Revenue growth 5Y1.96%
Sales Q2Q%-6.32%
3.2 Future
Based on estimates for the next years, RHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.60% on average per year.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y-35.62%
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
EPS Next 5Y15.6%
Revenue Next Year-9.13%
Revenue Next 2Y-3.43%
Revenue Next 3Y0.24%
Revenue Next 5Y5.49%
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
A Price/Earnings ratio of 26.03 indicates a quite expensive valuation of RHI.
RHI's Price/Earnings is on the same level as the industry average.
RHI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
The Price/Forward Earnings ratio is 24.08, which indicates a rather expensive current valuation of RHI.
RHI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. RHI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 24.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RHI indicates a slightly more expensive valuation: RHI is more expensive than 66.23% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RHI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.26 | ||
| EV/EBITDA | 22.83 |
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)17.2
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
5. Dividend
5.1 Amount
RHI has a Yearly Dividend Yield of 2.99%.
Compared to an average industry Dividend Yield of 1.84, RHI pays a better dividend. On top of this RHI pays more dividend than 94.81% of the companies listed in the same industry.
RHI's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
5.2 History
On average, the dividend of RHI grows each year by 11.53%, 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)11.53%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
RHI pays out 76.22% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.22%
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
ROBERT HALF INC
NYSE:RHI (12/20/2024, 8:04:00 PM)
After market: 71.32 0 (0%)71.32
+0.4 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.21%
Inst Owner Change2.1%
Ins Owners1.72%
Ins Owner Change-0.31%
Market Cap7.36B
Analysts52
Price Target65.99 (-7.47%)
Short Float %7.12%
Short Ratio7.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Dividend Growth(5Y)11.53%
DP76.22%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.32%
Min EPS beat(2)-7.38%
Max EPS beat(2)2.73%
EPS beat(4)1
Avg EPS beat(4)-1.5%
Min EPS beat(4)-7.38%
Max EPS beat(4)2.73%
EPS beat(8)2
Avg EPS beat(8)-1.14%
EPS beat(12)4
Avg EPS beat(12)-0.84%
EPS beat(16)8
Avg EPS beat(16)4.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-0.48%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-0.48%
Revenue beat(8)1
Avg Revenue beat(8)-1.41%
Revenue beat(12)2
Avg Revenue beat(12)-1.42%
Revenue beat(16)6
Avg Revenue beat(16)0.06%
PT rev (1m)-1.22%
PT rev (3m)1.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 24.08 | ||
| P/S | 1.25 | ||
| P/FCF | 23.26 | ||
| P/OCF | 19.89 | ||
| P/B | 5 | ||
| P/tB | 5.97 | ||
| EV/EBITDA | 22.83 |
EPS(TTM)2.74
EY3.84%
EPS(NY)2.96
Fwd EY4.15%
FCF(TTM)3.07
FCFY4.3%
OCF(TTM)3.59
OCFY5.03%
SpS57.01
BVpS14.27
TBVpS11.95
PEG (NY)N/A
PEG (5Y)17.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.54% | ||
| ROE | 19.31% | ||
| ROCE | 14.58% | ||
| ROIC | 10.55% | ||
| ROICexc | 16.01% | ||
| ROICexgc | 20.46% | ||
| OM | 4.14% | ||
| PM (TTM) | 4.84% | ||
| GM | 38.99% | ||
| FCFM | 5.38% |
ROA(3y)18.71%
ROA(5y)17.55%
ROE(3y)37.06%
ROE(5y)35.26%
ROIC(3y)30.99%
ROIC(5y)27.87%
ROICexc(3y)50.67%
ROICexc(5y)43.17%
ROICexgc(3y)65.63%
ROICexgc(5y)55.65%
ROCE(3y)42.84%
ROCE(5y)38.53%
ROICexcg growth 3Y5.82%
ROICexcg growth 5Y-10.52%
ROICexc growth 3Y6.47%
ROICexc growth 5Y-9.72%
OM growth 3Y2.45%
OM growth 5Y-6.78%
PM growth 3Y2.37%
PM growth 5Y-2.99%
GM growth 3Y0.75%
GM growth 5Y-0.63%
F-Score5
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 99.98% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.45% | ||
| Profit Quality | 111.22% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 5.6 |
F-Score5
WACC9.35%
ROIC/WACC1.13
Cap/Depr(3y)92.12%
Cap/Depr(5y)83.91%
Cap/Sales(3y)0.71%
Cap/Sales(5y)0.75%
Profit Quality(3y)111.01%
Profit Quality(5y)123.62%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.87%
EPS 3Y12.61%
EPS 5Y1.51%
EPS Q2Q%-28.89%
EPS Next Y-35.62%
EPS Next 2Y-12.52%
EPS Next 3Y2.23%
EPS Next 5Y15.6%
Revenue 1Y (TTM)-11.44%
Revenue growth 3Y7.76%
Revenue growth 5Y1.96%
Sales Q2Q%-6.32%
Revenue Next Year-9.13%
Revenue Next 2Y-3.43%
Revenue Next 3Y0.24%
Revenue Next 5Y5.49%
EBIT growth 1Y-57.33%
EBIT growth 3Y10.4%
EBIT growth 5Y-4.95%
EBIT Next Year-27.85%
EBIT Next 3Y3.77%
EBIT Next 5Y13.69%
FCF growth 1Y-44.07%
FCF growth 3Y1.63%
FCF growth 5Y2.21%
OCF growth 1Y-40.88%
OCF growth 3Y2.21%
OCF growth 5Y2.16%