Heidrick & Struggles (HSII) AI Stock Analysis

• Market Cap: $977.84M
• Dividend Yield: 1.26%
• Average Volume (3M): 124.80K
• Price to Earnings (P/E): 139.0
• Beta (1Y): 0.83
• Revenue Growth: 6.17%
• EPS Growth: -85.16%
• Country: US
• Employees: 2,210
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): 0.67
• Shares Outstanding: 20,620,787
• 10 Day Avg. Volume: 180,422
• 30 Day Avg. Volume: 124,803
• PEG Ratio: 1.85
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.11
• Enterprise Value/Market Cap: 0.29
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: 0.74
• 1Y Price Target: $51.33
• Price Target Upside: 5.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 70 Neutral
• Price Target: $50.00 ▲(3.05%Upside)

Heidrick & Struggles' solid financial performance and strong technical indicators underpin its stock score. The earnings call was positive, highlighting growth and improved profitability. However, the high P/E ratio suggests overvaluation, which tempers the overall score. The company's strong cash position and strategic focus provide further confidence.

Positive Factors

Financial Performance

Q4/24 revenue increased 9% YOY to $276.2 million, which exceeded the estimate and consensus while coming in above the high end of the guidance range.

Market Demand

Resilient demand for Heidrick’s solutions highlights the critical importance of leadership in driving corporate performance amidst a complex operating environment.

Market Opportunity

Heidrick & Struggles serves an expansive addressable market of $42 billion, which is growing as large global businesses increasingly emphasize talent attraction, retention, and development.

Negative Factors

Profitability Challenges

Q4/24 adjusted EBITDA margin declined 460 basis points YOY to 9.5% due to increased variable compensation.

Heidrick & Struggles Business Overview & Revenue Model

Company Description

Heidrick & Struggles International, Inc. is a global executive search and consulting firm headquartered in Chicago, Illinois. The company operates in the human capital and organizational consulting sectors, providing leadership consulting, culture shaping, and senior-level executive search services. With a presence in major financial centers around the world, Heidrick & Struggles helps organizations build effective leadership teams to drive business success.

How the Company Makes Money

Heidrick & Struggles generates revenue primarily through its executive search and consulting services. The company earns fees for placing senior executives and other top-level positions within client organizations. Additionally, it provides leadership consulting services, which include succession planning, leadership development, and culture shaping, contributing to its revenue streams. The firm's global reach and diverse industry expertise enable it to maintain long-term partnerships with multinational corporations, which significantly contribute to its earnings.

Heidrick & Struggles Financial Statement Overview

Summary

Heidrick & Struggles shows moderate financial health with consistent revenue growth and strong cash flow generation. However, profitability margins are low, and operational efficiency needs improvement. The balance sheet is solid with low leverage, but the return on equity is notably weak.

Income Statement

The company has shown a steady increase in total revenue over the years, with a recent TTM (Trailing-Twelve-Months) revenue of $1,134,020,000. Gross profit margin is moderate at 24.5%, indicating decent cost management. However, net profit margin is quite low at 0.7%, reflecting challenges in maintaining profitability. EBIT and EBITDA margins are also on the lower side at 2.7% and 7.7%, respectively, suggesting limited operational efficiency.

Balance Sheet

Heidrick & Struggles maintains a solid equity base with a stockholders' equity of $465,050,000 and a favorable equity ratio of 45.4%. The debt-to-equity ratio is low at 0.22, indicating prudent leverage management. Return on equity (ROE) has decreased significantly, currently at 1.7%, pointing to potential inefficiencies in generating returns from equity.

Cash Flow

The company exhibits strong free cash flow generation with a recent TTM free cash flow of $98,755,000. However, free cash flow has declined from the prior year, indicating potential operational challenges. The operating cash flow to net income ratio is robust at 15.2, suggesting efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.12B	1.04B	1.08B	1.01B	629.37M
Gross Profit	277.50M	281.10M	276.11M	275.48M	238.28M	178.95M
EBITDA	87.97M	92.80M	101.11M	122.87M	125.59M	161.81M
Net Income	8.00M	8.73M	54.41M	79.49M	72.57M	-37.71M
Balance Sheet
Total Assets	1.02B	1.19B	1.14B	1.18B	1.11B	787.81M
Cash, Cash Equivalents and Short-Term Investments	324.66M	563.52M	478.16M	621.62M	545.23M	336.47M
Total Debt	100.09M	100.81M	99.70M	82.85M	84.96M	115.80M
Total Liabilities	558.64M	741.37M	679.31M	764.99M	770.78M	520.21M
Stockholders Equity	465.05M	452.82M	462.28M	410.65M	336.02M	267.60M
Cash Flow
Free Cash Flow	98.75M	124.12M	-40.23M	108.15M	265.16M	16.03M
Operating Cash Flow	121.63M	150.43M	-26.79M	119.29M	271.40M	23.35M
Investing Cash Flow	-142.46M	-14.62M	133.60M	-279.60M	-21.26M	32.63M
Financing Cash Flow	-17.11M	-16.74M	-53.53M	-15.69M	-15.52M	-16.40M

Heidrick & Struggles Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 48.52 is above the 20-day moving average (MA) of 44.42, above the 50-day MA of 42.76, and above the 200-day MA of 42.51, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 80.08 is Negative, neither overbought nor oversold. The STOCH value of 96.21 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
KFY	78 Outperform	$3.84B	16.08	13.49%	2.57%	-1.23%	44.06%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
HSII	70 Neutral	$977.84M	138.98	1.71%	1.26%	6.17%	-85.16%
KFRC	67 Neutral	$811.34M	17.24	31.45%	3.58%	-6.38%	-12.32%
RHI	61 Neutral	$4.38B	21.40	14.49%	5.48%	-7.81%	-40.22%
MAN	57 Neutral	$2.05B	19.20	5.19%	3.27%	-5.52%	133.51%
ZIP	43 Neutral	$491.46M	225.24	-2897.28%	―	-20.95%	-152.29%

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.

The most recent analyst rating on (HSII) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on Heidrick & Struggles stock, see the HSII Stock Forecast page.