HireQuest (HQI) AI Stock Analysis

• Market Cap: $138.18M
• Dividend Yield: 2.48%
• Average Volume (3M): 10.06K
• Price to Earnings (P/E): 56.8
• Beta (1Y): 0.60
• Revenue Growth: -9.76%
• EPS Growth: -53.41%
• Country: US
• Employees: 92
• Sector: Industrials
• Sector Strength: 73
• Industry: Staffing & Employment Services
• EPS (TTM): 0.15
• Shares Outstanding: 14,100,000
• 10 Day Avg. Volume: 6,196
• 30 Day Avg. Volume: 10,061
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 24.78
• 1Y Price Target: $11.75
• Price Target Upside: 18.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: $10.50 ▲(5.95% Upside)

HireQuest's overall stock score is primarily influenced by its strong cash flow management and stable balance sheet, which are offset by declining profitability and revenue. The technical analysis indicates a lack of strong momentum, and the high P/E ratio suggests potential overvaluation. The negative sentiment from the earnings call further impacts the score, despite the positive corporate event of a dividend announcement.

Positive Factors

Financial Performance

Management remains pleased with the continuation of solid profitability despite revenue headwinds, attributing success to the strength and resilience of its franchise business model and a continued focus on expense management.

Strategic Initiative

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

Negative Factors

Market Conditions

Recent softness in U.S. manufacturing employment is impacting demand for the company’s services, particularly affecting system-wide sales for HireQuest Direct and executive search offerings.

Revenue Decline

Franchise royalty fees accounted for 95% of Q2/25 revenue and declined -11.2% YOY to $7.3 million, reflecting challenges in the staffing industry.

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 franchise model, where it charges franchisees a percentage of their sales in exchange for brand support, training, and access to proprietary systems. Additionally, the company earns income from direct staffing services, placement fees, and ongoing royalties from franchise operations. Key revenue streams include temporary staffing placements, direct hire services, and managed services contracts. The company's partnerships with various businesses and organizations enhance its service offerings and contribute to its earnings by expanding its client base and increasing placement opportunities.

HireQuest Financial Statement Overview

Summary

HireQuest shows 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	32.61M	34.60M	37.88M	30.95M	22.76M	13.81M
Gross Profit	31.88M	34.60M	37.88M	30.95M	22.59M	13.81M
EBITDA	5.72M	7.86M	11.96M	16.28M	9.20M	6.28M
Net Income	2.44M	3.67M	6.13M	12.46M	11.85M	5.36M
Balance Sheet
Total Assets	94.31M	94.01M	103.83M	103.28M	77.35M	49.10M
Cash, Cash Equivalents and Short-Term Investments	2.67M	2.22M	1.34M	3.05M	1.26M	13.67M
Total Debt	4.33M	6.92M	14.77M	16.54M	3.24M	0.00
Total Liabilities	28.29M	29.21M	41.09M	45.03M	30.62M	12.73M
Stockholders Equity	66.02M	64.80M	62.73M	58.25M	46.73M	36.36M
Cash Flow
Free Cash Flow	17.00M	11.97M	10.52M	15.40M	15.41M	9.12M
Operating Cash Flow	17.23M	12.04M	10.62M	16.88M	17.38M	10.88M
Investing Cash Flow	-88.00K	44.00K	-7.08M	-23.57M	-29.45M	36.37K
Financing Cash Flow	-15.08M	-11.21M	-5.24M	8.49M	-347.17K	-1.44M

HireQuest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.91
• 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 HQI, the sentiment is Positive. The current price of 9.91 is above the 20-day moving average (MA) of 9.56, above the 50-day MA of 9.83, and below the 200-day MA of 11.68, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 69.00 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 *	64 Neutral	$10.73B	15.65	7.58%	2.01%	2.80%	-14.92%
HQI	63 Neutral	$138.18M	56.81	4.06%	2.48%	-9.76%	-53.41%
DHX	57 Neutral	$135.39M	268.89	-8.83%	―	-8.31%	-445.30%
MHH	54 Neutral	$94.16M	112.99	1.01%	―	5.16%	―
TBI	49 Neutral	$178.21M	―	-10.53%	―	-13.01%	68.18%
BGSF	49 Neutral	$67.51M	―	-9.13%	4.69%	-24.36%	-393.95%
JOB	48 Neutral	$21.28M	―	-53.10%	―	-15.53%	-67.84%

HireQuest Corporate Events

HireQuest Announces Quarterly Cash Dividend Declaration

On August 12, 2025, HireQuest, Inc. announced a quarterly cash dividend of $0.06 per share, payable on September 15, 2025, to shareholders recorded by September 1, 2025. This decision reflects the company’s ongoing financial strategy and commitment to returning value to shareholders, although future dividends will depend on the company’s financial performance and other factors, as assessed by the Board of Directors each quarter.

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.

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.