HireQuest, Inc. Fundamental Analysis (NASDAQ: HQI)
HireQuest, Inc. Fundamental Analysis (NASDAQ: HQI)
HireQuest, Inc. (NASDAQ: HQI) shows moderate financial fundamentals with a PE ratio of 28.97, profit margin of 27.06%, and ROE of 11.98%. The company generates $0.0B in annual revenue with weak year-over-year growth of -11.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HQI's fundamental strength across five key dimensions:
Efficiency Score
WeakHQI struggles to generate sufficient returns from assets.
Valuation Score
ModerateHQI shows balanced valuation metrics.
Growth Score
ModerateHQI shows steady but slowing expansion.
Financial Health Score
ExcellentHQI maintains a strong and stable balance sheet.
Profitability Score
ModerateHQI maintains healthy but balanced margins.
Key Financial Metrics
Is HQI Expensive or Cheap?
P/E Ratio
HQI trades at 28.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HQI's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values HireQuest, Inc. at 3.42 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.45 times EBITDA. This signals the market has high growth expectations.
How Well Does HQI Make Money?
Net Profit Margin
For every $100 in sales, HireQuest, Inc. keeps $27.06 as profit after all expenses.
Operating Margin
Core operations generate 29.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.98 in profit for every $100 of shareholder equity.
ROA
HireQuest, Inc. generates $8.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HireQuest, Inc. generates strong operating cash flow of $9.59M, reflecting robust business health.
Free Cash Flow
HireQuest, Inc. generates strong free cash flow of $9.56M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.69 in free cash annually.
FCF Yield
HQI converts 3.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How HQI Stacks Against Its Sector Peers
| Metric | HQI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.97 | 30.97 | Neutral |
| ROE | 11.98% | 1108.00% | Weak |
| Net Margin | 27.06% | -21241.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.74 | 21.73 | Strong Liquidity |
| ROA | 8.74% | -1325740.00% (disorted) | Weak |
HQI outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HireQuest, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
114.55%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
14.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
7.06%
Industry Style: Cyclical, Value, Infrastructure
Growing