HireQuest (HQI) AI Stock Analysis

• Market Cap: $130.00M
• Dividend Yield: 2.48%
• Average Volume (3M): 11.71K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 0.57
• Revenue Growth: -9.76%
• EPS Growth: -53.41%
• Country: US
• Employees: 92
• Sector: Industrials
• Sector Strength: 78
• Industry: Staffing & Employment Services
• EPS (TTM): 0.15
• Shares Outstanding: 14,100,000
• 10 Day Avg. Volume: 13,112
• 30 Day Avg. Volume: 11,708
• 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: 1.09
• Enterprise Value/Revenue: 4.35
• Enterprise Value/Gross Profit: 4.45
• Enterprise Value/Ebitda: 24.78
• 1Y Price Target: $11.50
• Price Target Upside: 24.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: $10.00 ▲(8.46% Upside)

HireQuest's overall stock score reflects strong cash flow management and a stable balance sheet, but is weighed down by declining profitability and negative revenue growth. Technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. The earnings call provided mixed signals, with financial flexibility offset by revenue and income declines.

Positive Factors

Expense Management

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.

Financial Performance

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

Negative Factors

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.

System-wide Sales Decline

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.

HireQuest Business Overview & Revenue Model

Company Description

HireQuest, Inc. (HQI) is a prominent staffing solutions provider that specializes in offering temporary and permanent workforce solutions across various sectors, including industrial, clerical, and healthcare services. With a focus on meeting the unique staffing needs of businesses, HireQuest operates through a network of franchise locations, providing clients with flexible employment solutions and a robust talent pool. The company is dedicated to streamlining the hiring process for employers while also supporting job seekers in finding suitable employment opportunities.

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 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. Continued vigilance on cost management and revenue generation will be essential to maintain its financial health.

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	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: Negative
• Last Price: 9.22
• 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 9.22 is below the 20-day moving average (MA) of 9.98, below the 50-day MA of 10.00, and below the 200-day MA of 12.03, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.76 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 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
Sector *	63 Neutral	$10.80B	16.80	6.58%	2.07%	2.49%	-15.77%
HQI	58 Neutral	$130.00M	53.45	4.06%	2.48%	-9.76%	-53.41%
MHH	56 Neutral	$89.38M	111.26	1.01%	―	5.16%	―
DHX	49 Neutral	$113.30M	268.89	-8.83%	―	-8.31%	-445.30%
TBI	48 Neutral	$174.02M	―	-10.53%	―	-13.01%	68.18%
BGSF	48 Neutral	$63.61M	―	-9.13%	4.69%	-24.36%	-393.95%
JOB	47 Neutral	$22.55M	―	-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.

The most recent analyst rating on (HQI) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on HireQuest stock, see the HQI Stock Forecast page.

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.