The Hackett Group (HCKT) AI Stock Analysis

• Market Cap: $485.84M
• Dividend Yield: 2.48%
• Average Volume (3M): 219.84K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.83
• Revenue Growth: 0.68%
• EPS Growth: -67.84%
• Country: US
• Employees: 1,618
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.37
• Shares Outstanding: 27,510,689
• 10 Day Avg. Volume: 176,523
• 30 Day Avg. Volume: 219,838
• PEG Ratio: -2.01
• Price to Book (P/B): 7.36
• Price to Sales (P/S): 2.71
• P/FCF Ratio: 19.49
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 6.27
• Enterprise Value/Ebitda: 27.12
• 1Y Price Target: $28.33
• Price Target Upside: 53.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $20.50 ▲(11.41% Upside)

The Hackett Group's overall stock score reflects strong revenue growth and strategic initiatives in AI and partnerships, which are positive for future prospects. However, declining profit margins, high valuation, and current revenue challenges, particularly in the Oracle Solutions segment, weigh on the score. The technical indicators suggest a bearish trend, further impacting the overall assessment.

Positive Factors

Revenue Growth

The robust revenue growth indicates effective market strategies and strong demand for services, supporting long-term business expansion.

AI Platform Development

The new AI platform version enhances competitive positioning and opens up new growth avenues, strengthening the company's technological edge.

Strategic Alliances

Strategic alliances enhance service offerings and expand market reach, positioning the company for sustainable growth and innovation.

Negative Factors

Declining Profit Margins

Declining profit margins suggest increased costs or competitive pressures, which could impact long-term profitability and financial health.

Oracle Solutions Segment Challenges

Significant revenue decline in a key segment indicates potential structural issues, affecting overall business performance and growth prospects.

Free Cash Flow Decline

A decline in free cash flow poses risks to liquidity and limits the company's ability to invest in growth opportunities or weather downturns.

The Hackett Group Business Overview & Revenue Model

Company Description

The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in North America and internationally. It offers best practice intelligence center, an online searchable repository; best practice accelerators that provide web-based access to best practices, customized software configuration tools, and best practice process flows; advisor inquiry for access to fact-based advice on proven approaches and methods; best practice research that provides insights into the proven approaches; and peer interaction comprising member-led webcasts, annual best practice conferences, annual member forums, membership performance surveys, and client-submitted content, as well as intellectual property as-a-service and Hackett Institute programs. The company's benchmarking services conduct studies for selling, general and administrative, finance, human resources, information technology, procurement, enterprise performance management, and shared services; and business transformation practices to help clients develop coordinated strategy for achieving performance enhancements across the enterprise. It also provides Oracle EEA solutions for core financial close and consolidation, integrated business planning, and reporting/advanced analytics areas. In addition, the company offers SAP solutions, including planning, architecture, and vendor evaluation and selection through implementation, customization, testing, and integration; post-implementation support, change management, exception management, process transparency, system documentation, and end-user training; off-shore application development, and application maintenance and support services; and OneStream practice that helps clients choose and deploy OneStream XF Platform and Market Place solutions. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.

How the Company Makes Money

The Hackett Group generates revenue primarily through its consulting services, which include project-based engagements, retainer arrangements, and subscription-based access to proprietary benchmarking data and research. Key revenue streams consist of fees from consulting projects, which are typically billed based on a combination of hourly rates and fixed fees for specific deliverables. Additionally, the company earns income from memberships in its benchmarking and best practices programs, providing clients with access to valuable insights and analytics. Strategic partnerships with technology vendors and industry associations also contribute to its revenue, enhancing service offerings and expanding market reach.

The Hackett Group Financial Statement Overview

Summary

The Hackett Group shows strong revenue growth but faces challenges with declining profit margins and free cash flow. The balance sheet reflects improved leverage, though efficiency in equity returns has decreased. Overall, growth prospects are positive, but profitability and cash flow management require attention.

Income Statement

The Hackett Group shows a strong revenue growth rate of 39.5% in the TTM, indicating robust expansion. However, margins have declined compared to previous years, with the net profit margin dropping to 5.37% from 9.44% in 2024. This suggests increased costs or competitive pressures impacting profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.21 in the TTM, reflecting a healthier leverage position compared to previous years. However, the return on equity has decreased to 14.72%, indicating reduced efficiency in generating returns from equity.

Cash Flow

Free cash flow has decreased by 20.46% in the TTM, which is a concern for liquidity. The operating cash flow to net income ratio remains strong at 0.87, suggesting good cash generation relative to net income, but the decline in free cash flow growth is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	308.17M	313.86M	296.59M	293.74M	278.81M	239.48M
Gross Profit	116.79M	123.24M	116.38M	115.58M	105.66M	73.11M
EBITDA	27.00M	48.51M	52.68M	58.69M	50.85M	13.12M
Net Income	10.91M	29.63M	34.15M	40.80M	41.55M	5.47M
Balance Sheet
Total Assets	200.66M	191.88M	181.43M	184.99M	207.54M	192.54M
Cash, Cash Equivalents and Short-Term Investments	13.89M	16.37M	20.96M	30.25M	45.79M	49.45M
Total Debt	46.48M	15.68M	34.42M	61.11M	3.77M	6.12M
Total Liabilities	99.03M	76.30M	91.35M	126.72M	63.69M	51.66M
Stockholders Equity	101.62M	115.57M	90.08M	58.28M	143.85M	140.89M
Cash Flow
Free Cash Flow	26.01M	43.65M	33.30M	54.25M	43.11M	42.17M
Operating Cash Flow	30.48M	47.73M	37.40M	58.90M	46.35M	44.06M
Investing Cash Flow	-5.24M	-10.62M	-4.10M	-4.66M	-3.24M	-1.89M
Financing Cash Flow	-25.04M	-41.66M	-42.56M	-69.74M	-46.74M	-18.71M

The Hackett Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HCKT, the sentiment is Neutral. The current price of 18.4 is above the 20-day moving average (MA) of 18.29, below the 50-day MA of 18.76, and below the 200-day MA of 23.39, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HCKT.

The Hackett Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBEX	77 Outperform	$468.12M	12.52	26.29%	―	12.86%	54.95%
III	69 Neutral	$256.18M	27.61	10.22%	2.97%	-5.74%	―
HCKT	64 Neutral	$485.84M	29.49	10.27%	2.48%	0.68%	-67.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PHLT	54 Neutral	―	―	-1.12%	―	15.21%	85.92%
CNDT	44 Neutral	$293.55M	―	-15.87%	―	-12.45%	-142.77%
UIS	38 Underperform	$240.26M	-2.85	―	―	-4.93%	18.65%

The Hackett Group Corporate Events

The Hackett Group’s Earnings Call: Mixed Sentiments and Strategic Growth

The Hackett Group’s recent earnings call presented a mixed sentiment, with notable advancements in AI technology and strategic alliances promising future growth. However, concerns were raised due to current revenue declines and challenges in specific segments, particularly Oracle Solutions. Despite these hurdles, the company’s strategic initiatives and robust cash flow position it well for future expansion.

The Hackett Group Reports Q3 2025 Earnings and Strategic Moves

The Hackett Group, Inc. is a generative artificial intelligence consultancy and executive advisory firm that focuses on enabling Digital World Class performance through strategic consulting and AI-driven solutions. The company recently released its third-quarter financial results for 2025, highlighting a strategic pivot towards generative AI, marked by the launch of its AI XPLR V4 platform, which has been well-received in the market.

The Hackett Group Announces Q3 Results and Stock Buyback

On November 4, 2025, The Hackett Group announced its third-quarter financial results and plans to launch a modified ‘Dutch auction’ tender offer to repurchase up to $40 million of its common stock. The company’s third-quarter revenue was $73.1 million, with adjusted earnings per share at $0.37, reflecting a strategic pivot towards Gen AI solutions. The release of AI XPLR V4 was highlighted as a significant development, receiving positive feedback and expected to drive future growth. The board approved an additional $40 million for share repurchases, indicating confidence in the company’s financial health and strategic direction.

The most recent analyst rating on (HCKT) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on The Hackett Group stock, see the HCKT Stock Forecast page.