The Hackett Group, Inc.
The Hackett Group, Inc. Fundamental Analysis
The Hackett Group, Inc. (HCKT) shows weak financial fundamentals with a PE ratio of 16.92, profit margin of 4.75%, and ROE of 15.84%. The company generates $0.3B in annual revenue with weak year-over-year growth of -2.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F 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
ExcellentHCKT trades at attractive valuation levels.
Growth Score
WeakHCKT faces weak or negative growth trends.
Financial Health Score
ModerateHCKT shows balanced financial health with some risks.
Profitability Score
ModerateHCKT maintains healthy but balanced margins.
Key Financial Metrics
Is HCKT Expensive or Cheap?
P/E Ratio
HCKT trades at 16.92 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HCKT's PEG of -0.43 indicates potential undervaluation.
Price to Book
The market values The Hackett Group, Inc. at 3.61 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.60 times EBITDA. This is generally considered low.
How Well Does HCKT Make Money?
Net Profit Margin
For every $100 in sales, The Hackett Group, Inc. keeps $4.75 as profit after all expenses.
Operating Margin
Core operations generate 11.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.84 in profit for every $100 of shareholder equity.
ROA
The Hackett Group, Inc. generates $6.89 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 $31.07M, showing steady but balanced cash generation.
Free Cash Flow
The Hackett Group, Inc. produces free cash flow of $22.33M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.89 in free cash annually.
FCF Yield
HCKT converts 9.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How HCKT Stacks Against Its Sector Peers
| Metric | HCKT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.92 | 36.74 | Better (Cheaper) |
| ROE | 15.84% | 968.00% | Weak |
| Net Margin | 4.75% | 5945062585.00% | Weak |
| Debt/Equity | 1.23 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.88 | 4.94 | Neutral |
| ROA | 6.89% | -296476.00% (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
40.16%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
159.73%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
0.46%
Industry Style: Growth, Innovation, High Beta
Growing