Heidrick & Struggles (HSII) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 1.02%
• Average Volume (3M): 436.48K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.79
• Revenue Growth: 11.53%
• EPS Growth: -6.32%
• Country: US
• Employees: 2,210
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.83
• Shares Outstanding: 20,794,940
• 10 Day Avg. Volume: 301,349
• 30 Day Avg. Volume: 436,482
• PEG Ratio: -1.22
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 7.24
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: 6.21
• 1Y Price Target: $59.00
• Price Target Upside: 0.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $66.00 ▲(12.36% Upside)

Heidrick & Struggles' strong financial performance and positive technical indicators are the primary drivers of the stock's score. The company's robust cash flow management and upward price trend are significant strengths. However, the high P/E ratio and potential margin pressures from increased expenses pose risks. Overall, the stock is positioned well for growth, but investors should be cautious of valuation and economic uncertainties.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for services and effective client engagement, supporting long-term growth.

Strong Cash Position

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

Service Line Growth

Growth across all service lines demonstrates diversified revenue streams and resilience in various market conditions.

Negative Factors

Increased Operating Expenses

Rising expenses can pressure margins, potentially impacting profitability unless offset by higher revenue or cost efficiencies.

Margin Pressure Expected

Anticipated margin compression could affect profitability, necessitating careful cost management to maintain financial health.

Potential Project Delays

Economic uncertainty could delay project starts, impacting revenue timing and necessitating strategic planning to mitigate risks.

Heidrick & Struggles Business Overview & Revenue Model

Company Description

Heidrick & Struggles (HSII) is a global executive search and consulting firm that specializes in leadership consulting, executive search, and culture shaping. Founded in 1953, the company operates through various sectors, including executive search, leadership consulting, and organizational consulting. Heidrick & Struggles aims to help organizations build strong leadership teams and enhance their culture to drive performance and growth.

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 exhibits a solid financial position with consistent revenue growth and effective cash flow management. While profitability margins indicate room for improvement, the company's low leverage and strong cash flow metrics provide a stable foundation for future growth.

Income Statement

Heidrick & Struggles has shown a consistent revenue growth trend, with a TTM revenue growth rate of 3.84%. The gross profit margin remains stable at 24.26%, indicating effective cost management. However, the net profit margin is relatively low at 2.92%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting potential areas for cost optimization.

Balance Sheet

The company's debt-to-equity ratio is low at 0.21, indicating a conservative leverage approach, which enhances financial stability. Return on equity is modest at 7.23%, suggesting moderate efficiency in generating returns from equity. The equity ratio of 40.28% indicates a solid equity base, contributing to financial resilience.

Cash Flow

Heidrick & Struggles demonstrates strong cash flow management with a significant free cash flow growth rate of 18.99% in the TTM period. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.87 suggests robust cash flow relative to profits, supporting potential reinvestment and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.21B	1.12B	1.04B	1.08B	1.01B	629.37M
Gross Profit	283.17M	281.10M	276.11M	275.48M	238.28M	174.55M
EBITDA	102.10M	92.80M	101.11M	122.87M	121.62M	76.47M
Net Income	37.05M	8.73M	54.41M	79.49M	72.57M	-37.71M
Balance Sheet
Total Assets	1.26B	1.19B	1.14B	1.18B	1.11B	787.81M
Cash, Cash Equivalents and Short-Term Investments	528.08M	563.52M	478.16M	621.62M	545.23M	336.47M
Total Debt	101.28M	100.81M	99.70M	82.85M	84.96M	115.80M
Total Liabilities	755.04M	741.37M	679.31M	764.99M	770.78M	520.21M
Stockholders Equity	509.22M	452.82M	462.28M	410.65M	336.02M	267.60M
Cash Flow
Free Cash Flow	132.44M	124.12M	-40.23M	108.15M	265.16M	16.03M
Operating Cash Flow	161.25M	150.43M	-26.79M	119.29M	271.40M	23.35M
Investing Cash Flow	-57.03M	-14.62M	133.60M	-279.60M	-21.26M	32.63M
Financing Cash Flow	-17.49M	-16.74M	-53.53M	-15.69M	-15.52M	-16.40M

Heidrick & Struggles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 58.74 is above the 20-day moving average (MA) of 58.40, above the 50-day MA of 54.12, and above the 200-day MA of 46.40, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 77.26 is Negative, neither overbought nor oversold. The STOCH value of 85.38 is Negative, 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	75 Outperform	$1.22B	34.32	7.47%	1.02%	11.53%	-6.32%
KFY	71 Outperform	$3.48B	14.10	13.55%	2.79%	0.79%	34.85%
KFRC	66 Neutral	$587.36M	14.11	27.19%	6.13%	-5.91%	-23.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	60 Neutral	$2.63B	16.89	11.27%	8.66%	-7.27%	-43.88%
MAN	46 Neutral	$1.38B	―	-1.00%	7.90%	-2.44%	-156.01%
ZIP	45 Neutral	$354.57M	―	―	―	-10.14%	-1381.34%

Heidrick & Struggles Corporate Events

Heidrick & Struggles Faces Investor Concerns Over Unregistered Equity Sales and Transparency Issues

Heidrick & Struggles International faces a potential business risk related to unregistered sales of equity securities, use of proceeds, and issuer purchases of equity securities. The absence of detailed information in the risk description raises concerns about transparency and regulatory compliance. This lack of disclosure could lead to investor uncertainty and potential legal challenges, impacting the company’s financial stability and market reputation. Stakeholders may demand more clarity to assess the implications of these activities on the company’s future performance.

Heidrick & Struggles Announces Special Meeting for Merger Vote

Heidrick & Struggles International, Inc. has announced a special virtual meeting for its stockholders on December 5, 2025, to vote on a proposed merger with Heron BidCo, LLC and its subsidiary, Heron Merger Sub, Inc. This merger, if approved, will result in Heidrick becoming a wholly-owned subsidiary of Heron BidCo, with stockholders receiving $59.00 per share in cash. The company’s Board of Directors has unanimously recommended that stockholders vote in favor of the merger, which is backed by private equity firms Advent International and Corvex PE Advisors. The merger is expected to impact Heidrick’s operations by integrating it into a larger consortium, potentially enhancing its market positioning and providing financial benefits to stakeholders.

The most recent analyst rating on (HSII) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Heidrick & Struggles stock, see the HSII Stock Forecast page.

Heidrick & Struggles to be Acquired by Consortium

On October 5, 2025, Heidrick & Struggles International, Inc. entered into a definitive agreement to be acquired by a consortium led by Advent International and Corvex Private Equity, transitioning the company to private ownership. The all-cash transaction, valued at approximately $1.3 billion, offers Heidrick stockholders $59.00 per share, a 26% premium on the 90-day average share price. This move aims to accelerate Heidrick’s growth and enhance its global leadership positions by investing in people, technology, and innovative solutions. The merger, approved by Heidrick’s Board of Directors, is expected to close by the first quarter of 2026, subject to stockholder and regulatory approvals. Upon completion, Heidrick will be delisted from Nasdaq, continuing operations under its current leadership.

The most recent analyst rating on (HSII) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Heidrick & Struggles stock, see the HSII Stock Forecast page.

Heidrick & Struggles Faces Scrutiny Over Unregistered Equity Sales and Transparency Concerns

Heidrick & Struggles International may face potential financial and regulatory risks associated with unregistered sales of equity securities, as well as their use of proceeds and issuer purchases of equity securities. Without detailed information provided in the description, stakeholders might be concerned about the transparency and compliance of the company’s equity transactions. This lack of disclosure could lead to uncertainty among investors and regulatory bodies, potentially impacting the company’s financial standing and market reputation. It is crucial for Heidrick & Struggles to address these concerns to maintain investor confidence and ensure adherence to regulatory standards.

Heidrick & Struggles Reports Strong Q2 2025 Growth

The latest earnings call for Heidrick & Struggles International showcased a robust financial performance, with the company reporting strong revenue growth across all solution lines. Despite facing challenges such as increased operating expenses and macroeconomic uncertainties, the overall sentiment was positive, driven by substantial growth and a solid financial position.

Heidrick & Struggles Reports Strong Q2 2025 Growth

Heidrick & Struggles International, Inc. is a leading global provider of leadership advisory and on-demand talent solutions, specializing in executive search and consulting services. The company operates across various regions, including the Americas, Europe, and Asia Pacific.