HireQuest (HQI) AI Stock Analysis

• Market Cap: $140.98M
• Dividend Yield: 2.38%
• Average Volume (3M): 13.76K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 0.57
• Revenue Growth: -7.66%
• EPS Growth: -34.08%
• Country: US
• Employees: 92
• Sector: Industrials
• Sector Strength: 87
• Industry: Staffing & Employment Services
• EPS (TTM): 0.10
• Shares Outstanding: 14,000,000
• 10 Day Avg. Volume: 23,136
• 30 Day Avg. Volume: 13,764
• PEG Ratio: 5.08
• Price to Book (P/B): 3.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.02
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 6.82
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: $13.00
• Price Target Upside: 28.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $11.00 ▲(8.70%Upside)

HireQuest's overall stock score of 67.5 reflects a solid financial foundation and positive corporate strategies, particularly in M&A and dividend policies. However, concerns over declining revenue and high valuation metrics temper the outlook. The mix of positive strategic initiatives and financial caution results in a moderate investment appeal.

Positive Factors

Franchising Model

HireQuest believes that its unique franchising model can significantly improve the financial performance of TrueBlue’s company-owned branch offices.

Profitability

Management was pleased with the continuation of solid profitability in the quarter despite revenue headwinds, which the company attributed to the strength and resiliency of its franchise business model and a continued focus on expense management.

Negative Factors

Executive Search Sales

System-wide sales from executive search and permanent placement continued to be soft, declining 20.6% YOY in Q4/24 and 18.6% YOY in full-year 2024.

Revenue Decline

Franchise royalty fees accounted for 93% of Q1/25 revenue and declined -11.1% YOY to $7.0 million, lower than our estimate of $7.7 million.

Sales Trends

Softer sales trends in Q1/25 were reflective of the challenging environment that has impacted the staffing industry over the last two-plus years.

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 makes money primarily through its franchise model, where it generates revenue by collecting franchise fees and royalties from its network of franchisee-owned branches. These fees are a percentage of the franchisees' gross sales. In addition to franchise fees, the company may also earn revenue from selling proprietary software, training programs, and other ancillary services to its franchisees. HireQuest's revenue streams are significantly supported by its partnerships with businesses in need of temporary staffing solutions across various industries, facilitating a steady demand for its services.

HireQuest Financial Statement Overview

Summary

HireQuest demonstrates a strong financial foundation with impressive profitability metrics and cash flow generation. While revenue growth has been a concern recently, the company's low leverage and effective cash management position it well for future opportunities.

Income Statement

HireQuest has demonstrated strong gross and net profit margins, with a TTM gross profit margin of 100% due to its unique revenue recognition. The EBIT and EBITDA margins are solid, though there has been a noticeable decline in revenue and net income from 2023 to 2024. The company experienced a revenue contraction year-over-year, which could be a concern if it persists.

Balance Sheet

The balance sheet reflects a healthy equity position with an equity ratio of 69.9% as of TTM. The debt-to-equity ratio is low, mitigating financial risk. However, there is a trend of increasing liabilities which could impact future leverage. Return on equity remains strong, indicating efficient use of shareholder funds.

Cash Flow

HireQuest has shown robust operating cash flows, with a strong free cash flow generation. The operating cash flow to net income ratio indicates effective cash conversion. However, fluctuations in cash flows related to investing and financing activities suggest variability in capital management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.65M	34.60M	37.88M	30.95M	22.76M	13.81M
Gross Profit	33.65M	34.60M	37.88M	28.91M	22.59M	13.81M
EBITDA	7.37M	7.86M	11.96M	16.28M	9.20M	6.71M
Net Income	3.42M	3.67M	6.13M	12.46M	11.85M	5.36M
Balance Sheet
Total Assets	93.74M	94.01M	103.83M	103.28M	77.35M	49.10M
Cash, Cash Equivalents and Short-Term Investments	2.09M	2.22M	1.34M	3.05M	1.26M	13.67M
Total Debt	5.46M	6.92M	14.77M	16.54M	3.24M	0.00
Total Liabilities	28.17M	29.21M	41.09M	45.03M	30.62M	12.73M
Stockholders Equity	65.56M	64.80M	62.73M	58.25M	46.73M	36.36M
Cash Flow
Free Cash Flow	14.50M	12.22M	10.13M	15.40M	15.41M	9.12M
Operating Cash Flow	14.93M	12.04M	10.62M	16.88M	17.38M	10.88M
Investing Cash Flow	147.00K	44.00K	-7.08M	-23.57M	-29.45M	36.37K
Financing Cash Flow	-14.49M	-11.21M	-5.24M	8.49M	-347.17K	-1.44M

HireQuest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.12
• 50DMA: Positive
• 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 HQI, the sentiment is Positive. The current price of 10.12 is above the 20-day moving average (MA) of 10.04, above the 50-day MA of 9.95, and below the 200-day MA of 12.64, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 67.27 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
Sector *	71 Outperform	¥255.26B	12.94	8.49%	3.09%	6.34%	12.95%
HQI	68 Neutral	$140.98M	41.34	5.67%	2.38%	-7.66%	-34.08%
DHX	62 Neutral	$153.08M	268.89	-7.21%	―	-7.42%	-567.61%
MHH	61 Neutral	$85.76M	40.30	2.52%	―	3.93%	―
BGSF	60 Neutral	$80.98M	―	-3.95%	4.69%	-12.93%	-159.19%
TBI	50 Neutral	$197.10M	―	-36.98%	―	-16.76%	-1127.93%
JOB	48 Neutral	$21.01M	―	-70.70%	―	-17.38%	-1165.13%

HireQuest Corporate Events

HireQuest Holds 2025 Annual Stockholders Meeting

On June 18, 2025, HireQuest, Inc. held its 2025 Annual Meeting of Stockholders where key decisions were made regarding the company’s governance and executive compensation. Stockholders elected six directors, ratified Forvis Mazars, LLP as the independent accounting firm for 2025, and approved executive compensation and the frequency of future advisory votes on this matter.

The most recent analyst rating on (HQI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.

HireQuest CEO Discusses TrueBlue Acquisition Efforts

On June 10, 2025, Richard Hermanns, CEO of HireQuest, discussed the company’s ongoing efforts to acquire TrueBlue, Inc. during an interview. Despite TrueBlue’s board rejecting the proposal, HireQuest remains interested as the acquisition could triple its size and unlock significant financial potential through its franchise system, emphasizing the growing importance of franchising and gig employment.

The most recent analyst rating on (HQI) stock is a Buy with a $16.00 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 May 16, 2025, HireQuest, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on June 16, 2025, to shareholders of record as of June 2, 2025. This decision reflects the company’s ongoing commitment to returning value to its shareholders, although the declaration of future dividends will depend on the company’s financial performance, cash needs, and other factors.

The most recent analyst rating on (HQI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.

HireQuest Proposes Acquisition of TrueBlue for $7.50/Share

On May 13, 2025, HireQuest, Inc. announced a proposal to acquire all outstanding shares of TrueBlue, Inc. for $7.50 per share, representing a 61% premium over TrueBlue’s closing price on May 12, 2025. The acquisition aims to leverage HireQuest’s franchising model to enhance profitability and shareholder value, addressing TrueBlue’s declining revenues and share price. Despite previous rejections from TrueBlue’s management, HireQuest is pursuing the acquisition to create a stronger, higher-margin company with significant growth prospects.

The most recent analyst rating on (HQI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.

HireQuest Announces CFO Retirement and Successor

On April 8, 2025, HireQuest, Inc. announced the retirement of its Chief Financial Officer, Steve Crane, effective May 31, 2025. David Hartley, who has been with the company since 2020 and currently serves as Vice President of Operational Finance and Corporate Development, will succeed Crane. Hartley’s appointment is part of a planned transition, with Crane assisting in the process to ensure continuity. The company believes Hartley’s experience and leadership will support its growth strategy and shareholder value.