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: 3.19
• Enterprise Value/Gross Profit: 8.69
• Enterprise Value/Ebitda: 40.11
• 1Y Price Target: $28.33
• Price Target Upside: 50.93% 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 ▲(9.22% 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 (HCKT) is a leading global strategy and operations consulting firm that specializes in providing advisory services and best practice research to various industries, including finance, technology, healthcare, and manufacturing. The company focuses on helping organizations enhance their operational performance, improve efficiencies, and implement effective strategies through its expertise in benchmarking, performance metrics, and process improvement. Hackett's core services include consulting, research, and advisory solutions aimed at optimizing business processes and driving growth for its clients.

How the Company Makes Money

The Hackett Group generates revenue primarily through its consulting services, which include strategic advisory, benchmarking studies, and operational improvement consulting for enterprises. The company charges fees for its consulting engagements, which can be project-based or retainer-based, depending on the client's needs. Additionally, Hackett offers subscription-based access to its proprietary research and benchmarking databases, providing clients with valuable insights and data to guide their decision-making processes. Significant partnerships with large enterprises and a strong reputation in the consulting industry also contribute to its earnings, as they help attract new clients and retain existing ones.

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 indicates improved leverage, but efficiency in equity returns has decreased.

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 2019
Income Statement
Total Revenue	229.88M	313.86M	296.59M	293.74M	278.81M	282.47M
Gross Profit	84.28M	123.24M	116.38M	115.58M	105.66M	96.79M
EBITDA	18.25M	48.51M	52.68M	58.69M	50.85M	35.58M
Net Income	7.35M	29.63M	34.15M	40.80M	41.55M	23.28M
Balance Sheet
Total Assets	200.66M	191.88M	181.43M	184.99M	207.54M	193.74M
Cash, Cash Equivalents and Short-Term Investments	13.89M	16.37M	20.96M	30.25M	45.79M	25.95M
Total Debt	46.48M	15.68M	34.42M	61.11M	3.77M	7.96M
Total Liabilities	99.03M	76.30M	91.35M	126.72M	63.69M	56.12M
Stockholders Equity	101.62M	115.57M	90.08M	58.28M	143.85M	137.61M
Cash Flow
Free Cash Flow	15.38M	43.65M	33.30M	54.25M	43.11M	37.79M
Operating Cash Flow	21.24M	47.73M	37.40M	58.90M	46.35M	42.36M
Investing Cash Flow	-6.63M	-10.62M	-4.10M	-4.66M	-3.24M	-5.58M
Financing Cash Flow	-17.02M	-41.66M	-42.56M	-69.74M	-46.74M	-24.70M

The Hackett Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.77
• 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 18.77 is above the 20-day moving average (MA) of 18.60, below the 50-day MA of 19.41, and below the 200-day MA of 24.27, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 55.73 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	$498.25M	15.47	24.57%	―	9.77%	34.36%
III	72 Outperform	$280.12M	30.19	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	48 Neutral	$364.92M	72.08	2.21%	―	-14.36%	-73.74%
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.