HireQuest (HQI) AI Stock Analysis

• Market Cap: $152.63M
• Dividend Yield: 2.55%
• Average Volume (3M): 32.65K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.44
• 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: 66,047
• 30 Day Avg. Volume: 32,650
• 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: 0.89
• Enterprise Value/Revenue: 4.28
• Enterprise Value/Gross Profit: 4.28
• Enterprise Value/Ebitda: 12.31
• 1Y Price Target: $13.00
• Price Target Upside: 18.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $12.00 ▲(9.19% Upside)

HQI scores strongest on financial quality—solid cash flow and low leverage—while the uptrend in price supports the outlook. The score is held back by deteriorating profitability and recent revenue declines, and valuation (P/E ~21.8) looks only fair given those fundamentals; earnings-call updates were mixed with margin improvement but continued year-over-year softness.

Positive Factors

Robust Free Cash Flow

Sustained FCF growth and near‑par conversion of net income to free cash flow improve financial flexibility. This durable cash generation supports reinvestment in franchise operations, consistent dividends, and buybacks while insulating the company from cyclical staffing demand shocks.

Low Leverage

Very low leverage gives HireQuest durable financial resilience, lowering fixed financing costs and preserving capacity to fund operations or strategic moves. A strong capital structure supports multi‑quarter stability across staffing cycles and provides optionality for capital allocation.

Shareholder-Friendly Capital Allocation

A material buyback authorization, alongside a long‑running quarterly dividend, signals management commitment to returning excess cash. This structural policy supports per‑share value, disciplines capital deployment, and improves shareholder returns over multiple quarters.

Negative Factors

Revenue Decline

Persistent negative top‑line growth erodes operational scale and reduces leverage over fixed costs in staffing. Continued revenue contraction over trailing periods risks margin pressure, limits reinvestment capacity, and weakens the franchise network’s ability to grow system‑wide sales.

Profitability Compression & Lower ROE

Sharp declines in net margin and ROE indicate weakening efficiency in converting revenue into shareholder returns. Lower profitability constrains internal funding for growth, raises sensitivity to cost inflation, and diminishes long‑term return prospects for investors.

Franchisee Nonrenewals and Service Mix Weakness

Loss of franchise renewals and underperformance in higher‑margin placement services point to structural client and partner challenges. Reduced franchise footprint and weaker permanent placement mix can lower recurring revenues and impede margin recovery over the coming quarters.

HireQuest Business Overview & Revenue Model

Company Description

HireQuest, Inc. provides temporary staffing solutions in the United States. The company provides temporary staffing services, including skilled and semi-skilled labor and industrial personnel, clerical and administrative personnel, and construction personnel. As of December 31, 2021, the company had a network of approximately 216 franchisee-owned offices in 36 states and the District of Columbia. In addition, the company specializes in commercial drivers. It serves customers primarily in the construction, industrial/manufacturing, warehousing, hospitality, recycling/waste management, disaster recovery, logistics, auctioneering, construction, landscaping, and retail industries. The company was formerly known as Command Center, Inc. and changed its name to HireQuest, Inc. in September 2019.HireQuest, Inc. was founded in 2002 and is headquartered in Goose Creek, South Carolina.

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: Positive
• Last Price: 10.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HQI, the sentiment is Positive. The current price of 10.99 is above the 20-day moving average (MA) of 9.71, above the 50-day MA of 9.10, and above the 200-day MA of 9.60, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 71.25 is Negative, neither overbought nor oversold. The STOCH value of 51.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HQI.

HireQuest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQI	68 Neutral	$152.63M	21.79	11.08%	2.55%	-12.65%	368.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BGSF	60 Neutral	$57.34M	-7.36	-14.43%	41.67%	-36.79%	-507.05%
MHH	56 Neutral	$82.23M	-867.50	-0.08%	―	1.24%	97.14%
JOB	51 Neutral	$22.23M	-0.64	-51.65%	―	-15.43%	-43.45%
DHX	50 Neutral	$79.22M	-5.45	-12.89%	―	-9.13%	-1032.39%
TBI	48 Neutral	$144.01M	-5.35	-8.91%	―	-5.37%	75.32%

HireQuest Corporate Events

HireQuest Announces $20 Million Share Repurchase Plan

On December 16, 2025, HireQuest‘s Board of Directors approved a $20 million share repurchase program aimed at enhancing shareholder value and reflecting confidence in the company’s long-term strategy. The buyback program, which will last for twelve months, allows the company to repurchase shares through various methods, potentially reallocating repurchased shares for employee benefit plans or general corporate purposes.

The most recent analyst rating on (HQI) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.

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.

The most recent analyst rating on (HQI) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.