Huron Consulting Group Inc.
Huron Consulting Group Inc. Fundamental Analysis
Huron Consulting Group Inc. (HURN) shows moderate financial fundamentals with a PE ratio of 21.88, profit margin of 6.25%, and ROE of 21.03%. The company generates $1.7B in annual revenue with moderate year-over-year growth of 8.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HURN's fundamental strength across five key dimensions:
Efficiency Score
WeakHURN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHURN trades at attractive valuation levels.
Growth Score
ExcellentHURN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHURN maintains a strong and stable balance sheet.
Profitability Score
ModerateHURN maintains healthy but balanced margins.
Key Financial Metrics
Is HURN Expensive or Cheap?
P/E Ratio
HURN trades at 21.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HURN's PEG of -9.00 indicates potential undervaluation.
Price to Book
The market values Huron Consulting Group Inc. at 4.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.02 times EBITDA. This signals the market has high growth expectations.
How Well Does HURN Make Money?
Net Profit Margin
For every $100 in sales, Huron Consulting Group Inc. keeps $6.25 as profit after all expenses.
Operating Margin
Core operations generate 10.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.03 in profit for every $100 of shareholder equity.
ROA
Huron Consulting Group Inc. generates $6.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Huron Consulting Group Inc. produces operating cash flow of $192.66M, showing steady but balanced cash generation.
Free Cash Flow
Huron Consulting Group Inc. generates strong free cash flow of $182.26M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.57 in free cash annually.
FCF Yield
HURN converts 8.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-9.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How HURN Stacks Against Its Sector Peers
| Metric | HURN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.88 | 26.71 | Better (Cheaper) |
| ROE | 21.03% | 1311.00% | Weak |
| Net Margin | 6.25% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 10.53 | Neutral |
| ROA | 6.88% | -1537638.00% (disorted) | Weak |
HURN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Huron Consulting Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
93.73%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
243.39%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
87.14%
Industry Style: Cyclical, Value, Infrastructure
High Growth