HireQuest (HQI) AI Stock Analysis

• Market Cap: $111.39M
• Dividend Yield: 3.04%
• Average Volume (3M): 14.96K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.41
• Revenue Growth: -12.65%
• EPS Growth: 368.36%
• Country: US
• Employees: 92
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.24
• Shares Outstanding: 14,100,000
• 10 Day Avg. Volume: 22,465
• 30 Day Avg. Volume: 14,964
• PEG Ratio: -1.33
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 5.66
• P/FCF Ratio: 16.37
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 4.28
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 12.31
• 1Y Price Target: $13.00
• Price Target Upside: 64.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.59
• Revenue Forecast (FY): $31.11M

• Rating: 64 Neutral
• Price Target: $8.50 ▲(7.59% Upside)

HireQuest's overall stock score reflects strong cash flow management and a stable balance sheet, but is tempered by declining profitability and negative revenue growth. The technical analysis indicates a bearish trend, while the valuation is reasonable with an attractive dividend yield. The earnings call provided a mixed outlook with consistent profitability but highlighted revenue challenges.

Positive Factors

Cash Flow Management

Strong cash flow management indicates effective operational efficiency, providing the company with the flexibility to invest in growth opportunities and weather economic fluctuations.

Franchise Model

The franchise model provides a scalable and resilient business structure, allowing HireQuest to maintain profitability and adapt to varying market conditions.

Adjusted EBITDA Margin

Improved EBITDA margins reflect efficient expense management, enhancing the company's ability to generate profits and sustain operations over the long term.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in market demand or competitive positioning, potentially impacting future growth and profitability.

Declining System-Wide Sales

Year-over-year decline in system-wide sales indicates potential issues in market penetration and customer retention, affecting long-term revenue prospects.

Franchisee Nonrenewals

Nonrenewal of franchise agreements can weaken the business model, reducing network reach and potentially impacting revenue from franchise operations.

HireQuest Business Overview & Revenue Model

Company Description

HireQuest (HQI) is a leading provider of staffing services in the United States, specializing in temporary and permanent placements across various sectors, including light industrial, clerical, and healthcare. The company operates through a network of franchised locations that offer workforce solutions tailored to meet the needs of employers and job seekers alike. HQI's core products include staffing services, workforce management solutions, and recruitment process outsourcing, ensuring businesses have access to qualified personnel while helping individuals find suitable employment opportunities.

How the Company Makes Money

HireQuest generates revenue primarily through its staffing services, which involve charging clients a markup on the hourly wages of temporary workers placed at their companies. This markup covers the costs of recruitment, payroll processing, and other administrative expenses. Additionally, the company earns revenue from permanent placement fees when it successfully matches candidates with long-term job opportunities. Franchise fees and royalties from its network of franchised locations also contribute to the company's earnings. Significant partnerships with various industries enhance its service offerings, further solidifying its position in the staffing market and driving revenue growth.

HireQuest Financial Statement Overview

Summary

HireQuest demonstrates strong cash flow management and a stable balance sheet with low leverage. However, declining profitability and negative revenue growth pose challenges. The company needs to focus on reversing the revenue decline and improving profit margins to enhance financial performance.

Income Statement

HireQuest's income statement shows a strong gross profit margin consistently above 97%, indicating efficient cost management. However, the net profit margin has declined over the years, from 52% in 2021 to 7.47% in the TTM period, reflecting reduced profitability. Revenue growth has been negative recently, with a -3.1% decline in the TTM period, suggesting challenges in maintaining sales momentum.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.065 in the TTM period, indicating low leverage and financial risk. Return on equity has decreased from 25.36% in 2021 to 3.76% in the TTM period, showing reduced efficiency in generating profits from equity. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a 17.21% growth in free cash flow in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.74, showing a solid conversion of income into cash. The free cash flow to net income ratio is high at 0.99, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.69M	34.60M	37.88M	30.95M	22.53M	13.81M
Gross Profit	31.69M	34.60M	37.88M	30.95M	22.53M	13.81M
EBITDA	11.01M	7.86M	11.96M	16.28M	9.20M	6.71M
Net Income	6.95M	3.67M	6.13M	12.46M	11.85M	5.36M
Balance Sheet
Total Assets	94.94M	94.01M	103.83M	103.28M	77.35M	49.10M
Cash, Cash Equivalents and Short-Term Investments	1.10M	2.22M	1.34M	3.05M	1.26M	13.67M
Total Debt	2.20M	6.92M	14.77M	16.54M	3.24M	0.00
Total Liabilities	27.11M	29.21M	41.09M	45.03M	30.62M	12.73M
Stockholders Equity	67.83M	64.80M	62.73M	58.25M	46.73M	36.36M
Cash Flow
Free Cash Flow	12.87M	11.97M	10.52M	15.40M	15.41M	9.12M
Operating Cash Flow	13.07M	12.04M	10.62M	16.88M	17.38M	10.88M
Investing Cash Flow	-200.00K	44.00K	-7.08M	-23.57M	-29.45M	36.37K
Financing Cash Flow	-11.81M	-11.21M	-5.24M	8.49M	-347.00K	-1.44M

HireQuest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HQI, the sentiment is Negative. The current price of 7.9 is below the 20-day moving average (MA) of 8.90, below the 50-day MA of 8.79, and below the 200-day MA of 10.11, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HQI.

HireQuest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQI	64 Neutral	$111.39M	15.90	11.08%	3.04%	-12.65%	368.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MHH	56 Neutral	$80.24M	―	-0.08%	―	1.24%	97.14%
DHX	51 Neutral	$90.74M	-9.17	-12.89%	―	-9.13%	-1032.39%
TBI	50 Neutral	$164.37M	-5.79	-8.91%	―	-5.37%	75.32%
BGSF	49 Neutral	$50.51M	-5.95	-14.43%	44.35%	-36.79%	-507.05%
JOB	47 Neutral	$20.88M	-0.57	-53.10%	―	-15.53%	-67.84%

HireQuest Corporate Events

HireQuest Declares Quarterly Cash Dividend Announcement

On November 7, 2025, HireQuest, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share, to be paid on December 15, 2025, with a record date of December 1, 2025. This decision reflects the company’s ongoing commitment to returning value to shareholders, although future dividends remain subject to the Board’s approval and various financial conditions.