Heidrick & Struggles International, Inc.
Heidrick & Struggles International, Inc. Fundamental Analysis
Heidrick & Struggles International, Inc. (HSII) shows weak financial fundamentals with a PE ratio of 33.86, profit margin of 3.05%, and ROE of 7.72%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 7.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HSII's fundamental strength across five key dimensions:
Efficiency Score
WeakHSII struggles to generate sufficient returns from assets.
Valuation Score
WeakHSII trades at a premium to fair value.
Growth Score
ModerateHSII shows steady but slowing expansion.
Financial Health Score
ExcellentHSII maintains a strong and stable balance sheet.
Profitability Score
WeakHSII struggles to sustain strong margins.
Key Financial Metrics
Is HSII Expensive or Cheap?
P/E Ratio
HSII trades at 33.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HSII's PEG of 4.71 indicates potential overvaluation.
Price to Book
The market values Heidrick & Struggles International, Inc. at 2.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.44 times EBITDA. This signals the market has high growth expectations.
How Well Does HSII Make Money?
Net Profit Margin
For every $100 in sales, Heidrick & Struggles International, Inc. keeps $3.05 as profit after all expenses.
Operating Margin
Core operations generate 3.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.72 in profit for every $100 of shareholder equity.
ROA
Heidrick & Struggles International, Inc. generates $2.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heidrick & Struggles International, Inc. produces operating cash flow of $157.69M, showing steady but balanced cash generation.
Free Cash Flow
Heidrick & Struggles International, Inc. generates strong free cash flow of $129.52M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.23 in free cash annually.
FCF Yield
HSII converts 10.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HSII Stacks Against Its Sector Peers
| Metric | HSII Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.86 | 27.03 | Worse (Expensive) |
| ROE | 7.72% | 1290.00% | Weak |
| Net Margin | 3.05% | -29392.00% (disorted) | Weak |
| Debt/Equity | 0.20 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 10.88 | Neutral |
| ROA | 2.93% | -1541816.00% (disorted) | Weak |
HSII outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Heidrick & Struggles International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.74%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-82.47%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
80.06%
Industry Style: Cyclical, Value, Infrastructure
High Growth