Heidrick & Struggles (HSII) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: 1.22%
• Average Volume (3M): 107.21K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.93
• Revenue Growth: 8.89%
• EPS Growth: -13.57%
• Country: US
• Employees: 2,210
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.85
• Shares Outstanding: 20,736,301
• 10 Day Avg. Volume: 120,255
• 30 Day Avg. Volume: 107,207
• 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: 0.66
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 6.66
• 1Y Price Target: $52.67
• Price Target Upside: 6.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $54.00 ▲(8.83% Upside)

Heidrick & Struggles' stock score is primarily driven by its strong financial performance and positive technical indicators. The company's robust earnings call further supports its growth trajectory, despite some valuation concerns. The absence of notable corporate events keeps the focus on core financial and operational metrics.

Positive Factors

Revenue Growth

Consistent revenue growth across all service lines demonstrates strong market demand and effective business strategies, supporting long-term expansion.

Cash Position

A robust cash position enhances financial flexibility, allowing for strategic investments and cushioning against economic uncertainties.

Service Line Growth

Diverse growth across service lines indicates a well-rounded business model, reducing dependency on any single revenue stream and enhancing resilience.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, potentially impacting the company's ability to maintain cost efficiency.

Margin Pressure

Expected margin pressure from hiring plans could affect profitability, challenging the company to balance growth with cost management.

Potential Project Delays

Economic uncertainty may lead to project delays, affecting revenue realization and requiring strategic adjustments to maintain growth momentum.

Heidrick & Struggles Business Overview & Revenue Model

Company Description

Heidrick & Struggles International, Inc., together with its subsidiaries, provides executive search, consulting, and on-demand talent services to businesses and business leaders worldwide. The company enables its clients to build leadership teams by facilitating the recruitment, management, and development of senior executives. It also offers on-demand services to provide clients with independent talent, including professionals with industry and functional expertise for interim leadership roles and critical project-based initiatives; and consulting services, including leadership assessment and development, team and organization acceleration, digital acceleration and innovation, diversity and inclusion advisory services, and culture shaping services. The company provides its services to Fortune 1000 companies; Major U.S. and non-U.S. companies; middle market and emerging growth companies; private equity firms; governmental, higher education, and not-for-profit organizations; and other private and public entities. Heidrick & Struggles International, Inc. was founded in 1953 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Heidrick & Struggles generates revenue primarily through fees charged for its executive search and leadership consulting services. The company operates on a fee-for-service model, where clients pay for the successful placement of executives or for consulting engagements related to leadership development and organizational effectiveness. Key revenue streams include retained search fees, which are typically structured as a percentage of the placed executive's first-year compensation, and consulting fees for services that may involve assessments, coaching, or strategic advisory roles. Additionally, HSII benefits from long-term relationships with major corporations and partnerships with various organizations, which can lead to repeat business and referrals, thus bolstering its earnings.

Heidrick & Struggles Financial Statement Overview

Summary

Heidrick & Struggles demonstrates solid financial health with consistent revenue growth and improved profitability. The balance sheet is strong with low leverage and improving return on equity. Cash flow generation is robust, though there is potential for better cash management. Overall, the company is on a positive trajectory with manageable risks.

Income Statement

Heidrick & Struggles has shown consistent revenue growth with a TTM growth rate of 3.44%. The gross profit margin is stable at 24.26%, and the net profit margin has improved to 2.92% from the previous year's 0.78%. However, the EBIT and EBITDA margins have slightly decreased, indicating potential cost management issues.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.21, indicating low leverage. Return on equity has improved to 7.23% in the TTM, reflecting better profitability. The equity ratio remains strong, suggesting financial stability. However, the overall asset growth is modest.

Cash Flow

Free cash flow has grown by 12.71% in the TTM, showing strong cash generation. The operating cash flow to net income ratio is 0.30, indicating efficient cash conversion. However, the free cash flow to net income ratio of 0.87 suggests room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.12B	1.04B	1.08B	1.01B	629.37M
Gross Profit	284.57M	281.10M	261.80M	275.48M	232.81M	157.50M
EBITDA	101.59M	92.80M	101.11M	122.87M	125.59M	76.47M
Net Income	34.23M	8.73M	54.41M	79.49M	72.57M	-37.71M
Balance Sheet
Total Assets	1.14B	1.19B	1.14B	1.18B	1.11B	787.81M
Cash, Cash Equivalents and Short-Term Investments	399.53M	563.52M	478.16M	621.62M	545.23M	336.47M
Total Debt	105.14M	100.81M	99.70M	82.85M	84.96M	115.80M
Total Liabilities	648.55M	741.37M	679.31M	764.99M	770.78M	520.21M
Stockholders Equity	492.49M	452.82M	462.28M	410.65M	336.02M	267.60M
Cash Flow
Free Cash Flow	111.30M	124.12M	-40.23M	108.15M	265.16M	16.03M
Operating Cash Flow	127.72M	150.43M	-26.79M	119.29M	271.40M	23.35M
Investing Cash Flow	-99.81M	-14.62M	133.60M	-279.60M	-21.26M	32.63M
Financing Cash Flow	-17.18M	-16.74M	-53.53M	-15.69M	-15.52M	-16.40M

Heidrick & Struggles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSII, the sentiment is Positive. The current price of 49.62 is below the 20-day moving average (MA) of 50.06, above the 50-day MA of 48.30, and above the 200-day MA of 44.55, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 18.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSII.

Heidrick & Struggles Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSII	74 Outperform	$1.03B	30.95	7.18%	1.22%	8.89%	-13.57%
KFY	68 Neutral	3.69B	14.99	13.22%	2.57%	0.79%	34.85%
RHI	64 Neutral	3.46B	19.13	13.57%	6.76%	-6.95%	-41.84%
KFRC	62 Neutral	554.81M	12.55	32.63%	5.20%	-5.77%	-11.93%
MAN	54 Neutral	1.79B	-101.85	-0.81%	5.86%	-3.79%	-138.56%
ZIP	47 Neutral	401.62M	-12.38	54.20%	―	-16.20%	-222.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Heidrick & Struggles Corporate Events

Heidrick & Struggles Holds Annual Stockholders Meeting

On May 22, 2025, Heidrick & Struggles International, Inc. held its annual stockholders meeting where 18,510,616 shares were represented. During the meeting, stockholders elected eight directors for a one-year term, approved executive officer compensation, and ratified the appointment of RSM US LLP as the independent registered public accounting firm for the 2025 fiscal year.