The Hackett Group, Inc.
The Hackett Group, Inc. Fundamental Analysis
The Hackett Group, Inc. (HCKT) shows weak financial fundamentals with a PE ratio of 28.94, profit margin of 4.23%, and ROE of 9.58%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 5.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HCKT's fundamental strength across five key dimensions:
Efficiency Score
WeakHCKT struggles to generate sufficient returns from assets.
Valuation Score
ModerateHCKT shows balanced valuation metrics.
Growth Score
ModerateHCKT shows steady but slowing expansion.
Financial Health Score
ExcellentHCKT maintains a strong and stable balance sheet.
Profitability Score
WeakHCKT struggles to sustain strong margins.
Key Financial Metrics
Is HCKT Expensive or Cheap?
P/E Ratio
HCKT trades at 28.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HCKT's PEG of 1.41 indicates fair valuation.
Price to Book
The market values The Hackett Group, Inc. at 1.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.75 times EBITDA. This signals the market has high growth expectations.
How Well Does HCKT Make Money?
Net Profit Margin
For every $100 in sales, The Hackett Group, Inc. keeps $4.23 as profit after all expenses.
Operating Margin
Core operations generate 7.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.58 in profit for every $100 of shareholder equity.
ROA
The Hackett Group, Inc. generates $6.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Hackett Group, Inc. produces operating cash flow of $42.49M, showing steady but balanced cash generation.
Free Cash Flow
The Hackett Group, Inc. generates strong free cash flow of $35.51M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.31 in free cash annually.
FCF Yield
HCKT converts 9.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How HCKT Stacks Against Its Sector Peers
| Metric | HCKT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.94 | 35.19 | Better (Cheaper) |
| ROE | 9.58% | 1155.00% | Weak |
| Net Margin | 4.23% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.38 | 0.41 | Neutral |
| Current Ratio | 1.72 | 4.71 | Neutral |
| ROA | 6.32% | -314918.00% (disorted) | Weak |
HCKT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Hackett Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.16%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
37.66%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
21.85%
Industry Style: Growth, Innovation, High Beta
High Growth