The Hackett Group (HCKT) AI Stock Analysis

• Market Cap: $547.23M
• Dividend Yield: 2.33%
• Average Volume (3M): 219.84K
• Price to Earnings (P/E): 52.3
• Beta (1Y): 0.77
• 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: 27,130,816
• 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: 1.34
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 6.27
• Enterprise Value/Ebitda: 27.12
• 1Y Price Target: $27.50
• Price Target Upside: 36.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $20.50 ▲(1.64% Upside)

The Hackett Group's overall stock score is driven by its stable financial performance and strategic initiatives in AI and partnerships, which promise future growth. However, the high P/E ratio and challenges in specific segments like Oracle Solutions weigh on the score. Technical indicators suggest mixed signals with short-term bullish momentum but potential overbought conditions.

Positive Factors

AI Platform Launch

The launch of AI XPLR platform version 4 with positive client feedback indicates a strong competitive edge and potential for long-term growth in AI-driven solutions.

Strategic Alliances

Strategic alliances, such as with Celonis, enhance product offerings and open new growth avenues, strengthening market position and competitive advantage.

Strong Cash Flow

Strong cash flow and share repurchase plans indicate robust financial health, providing flexibility for strategic investments and shareholder value enhancement.

Negative Factors

Revenue Decline

A 7% revenue decline suggests potential challenges in maintaining growth momentum, which could impact long-term financial performance if not addressed.

Oracle Solutions Challenges

Significant revenue decline in the Oracle Solutions segment highlights operational challenges that could affect the company's competitive position in this area.

Profitability Pressure

Decreasing net profit margins indicate pressure on profitability, which could limit reinvestment capacity and affect long-term financial sustainability.

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 tailored solutions for enterprises to enhance their performance and efficiency. The company operates in various sectors, including finance, healthcare, technology, and manufacturing, offering a wide range of services such as benchmarking, advisory, and managed services. Hackett's core products include performance improvement tools, best practices research, and strategic advisory services designed to help organizations optimize their operations and achieve sustainable growth.

How the Company Makes Money

The Hackett Group generates revenue primarily through its consulting services, which include strategic advisory, performance benchmarking, and managed services. The company typically charges clients on a project basis for its consulting engagements, which can range from short-term projects to long-term partnerships. Key revenue streams include fees from consulting projects, subscription-based services for access to its proprietary research and benchmarking data, and managed services contracts. Additionally, Hackett collaborates with various technology partners to enhance its offerings, leveraging these relationships to provide integrated solutions that drive additional revenue and client engagement.

The Hackett Group Financial Statement Overview

Summary

The Hackett Group shows strong revenue growth and stable gross margins. However, there are concerns about declining net profit margins and cash flow generation. Improved leverage management is a positive, but the declining return on equity is a concern.

Income Statement

The Hackett Group has shown consistent revenue growth over the years, with a 2.23% increase in the latest year. Gross profit margins have remained stable around 39%, indicating efficient cost management. However, the net profit margin has slightly decreased to 9.44% from 11.51% the previous year, suggesting some pressure on net profitability. EBIT and EBITDA margins have also seen a decline, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.14 from 0.38, indicating better leverage management. Return on equity has decreased to 25.64% from 37.91%, which is still strong but shows a declining trend. The equity ratio remains healthy, suggesting a stable financial position.

Cash Flow

Operating cash flow has increased, but free cash flow has decreased by 10.40%, indicating potential challenges in cash generation. The operating cash flow to net income ratio is strong at 0.90, showing good cash conversion, but the decline in free cash flow growth could be a concern if it persists.

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: Positive
• Last Price: 20.17
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 20.17 is above the 20-day moving average (MA) of 19.21, above the 50-day MA of 18.81, and below the 200-day MA of 22.59, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 76.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$509.19M	13.90	26.29%	―	12.86%	54.95%
III	69 Neutral	$280.12M	30.19	10.22%	3.08%	-5.74%	―
HCKT	65 Neutral	$547.23M	52.27	10.27%	2.33%	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	47 Neutral	$304.25M	-2.05	-15.87%	―	-12.45%	-142.77%
UIS	45 Neutral	$199.66M	-0.61	―	―	-4.93%	18.65%

The Hackett Group Corporate Events

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.