Heidrick & Struggles International, Inc. Fundamental Analysis
Heidrick & Struggles International, Inc. Fundamental Analysis
Heidrick & Struggles International, Inc. (HSII) shows weak financial fundamentals with a PE ratio of 23.42, profit margin of 5.58%, and ROE of 10.64%. The company generates $0.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HSII's fundamental strength across five key dimensions:
Efficiency Score
WeakHSII struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHSII trades at attractive valuation levels.
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 23.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HSII's PEG of -3.46 indicates potential undervaluation.
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 17.46 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 $5.58 as profit after all expenses.
Operating Margin
Core operations generate 6.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.64 in profit for every $100 of shareholder equity.
ROA
Heidrick & Struggles International, Inc. generates $4.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heidrick & Struggles International, Inc. generates limited operating cash flow of $-28.30M, signaling weaker underlying cash strength.
Free Cash Flow
Heidrick & Struggles International, Inc. generates weak or negative free cash flow of $-40.17M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.93 in free cash annually.
FCF Yield
HSII converts -3.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
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
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HSII Stacks Against Its Sector Peers
| Metric | HSII Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.42 | 29.80 | Better (Cheaper) |
| ROE | 10.64% | 1162.00% | Weak |
| Net Margin | 5.58% | -20864.00% (disorted) | Weak |
| Debt/Equity | 0.20 | 0.37 | Strong (Low Leverage) |
| Current Ratio | 1.53 | 24.29 | Neutral |
| ROA | 4.12% | -1316017.00% (disorted) | Weak |
HSII outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
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
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure