Heidrick & Struggles (HSII) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 1.02%
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: 11.53%
• EPS Growth: -6.32%
• Country: US
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: N/A
• EPS (TTM): 0.83
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• 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: 10.00T>
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: 5.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $64.00 ▲(8.46% Upside)

The overall score reflects strong financial stability and positive corporate events, offset by technical indicators suggesting an overbought condition and a high valuation. The acquisition is a key positive factor, expected to drive future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and expansion.

Cash Flow Management

Efficient cash flow management ensures financial stability and provides resources for reinvestment and shareholder returns, enhancing long-term resilience.

Strategic Acquisition

The acquisition supports a multi-year growth strategy, enhancing strategic positioning and operational scale, crucial for long-term competitive advantage.

Negative Factors

Profitability Margins

Low profitability margins indicate potential challenges in cost management and pricing power, which could impact long-term financial performance.

Leadership Changes

Leadership changes can create strategic uncertainty and require time for new management to align with company goals, affecting long-term execution.

Transparency Issues

Concerns over transparency can undermine investor trust and impact the company's reputation, potentially affecting long-term stakeholder relationships.

Heidrick & Struggles Business Overview & Revenue Model

Company Description

How the Company Makes Money

Heidrick & Struggles generates revenue primarily through its executive search services, which involve identifying and recruiting top-level executives for client organizations. This segment typically accounts for a significant portion of the company's income, as it charges clients a fee based on a percentage of the executive's first-year compensation. Additionally, HSII earns income from its leadership consulting services, which include assessments, coaching, and advisory services aimed at enhancing organizational effectiveness and leadership capability. The firm also benefits from partnerships with various organizations and institutions that enhance its service offerings and market reach. Furthermore, by leveraging its extensive network and industry expertise, HSII can attract high-profile clients seeking strategic advice and talent solutions, contributing to its overall 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	109.42M	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: 59.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 59.01 is above the 20-day moving average (MA) of 58.90, above the 50-day MA of 58.54, and above the 200-day MA of 48.27, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 80.71 is Negative, neither overbought nor oversold. The STOCH value of 74.99 is Neutral, 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	73 Outperform	$3.57B	13.89	13.89%	2.79%	3.65%	5.71%
HSII	67 Neutral	―	―	7.47%	1.02%	11.53%	-6.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	60 Neutral	$2.81B	18.03	11.27%	8.36%	-7.27%	-43.88%
TNET	58 Neutral	$2.91B	22.17	111.30%	1.81%	0.99%	-47.02%
NSP	50 Neutral	$1.47B	87.90	16.04%	6.17%	3.19%	-86.21%
MAN	48 Neutral	$1.36B	-62.91	-1.00%	4.88%	-2.44%	-156.01%

Heidrick & Struggles Corporate Events

Heidrick & Struggles Goes Private in $1.3B Acquisition

On December 10, 2025, Heidrick & Struggles completed a significant transition to become a privately held company through a $1.3 billion acquisition led by Advent International and Corvex Private Equity, alongside other strategic investors. This move is set to enhance the company’s growth strategy, allowing it to scale operations and strengthen client relationships. The transaction also resulted in the delisting of Heidrick & Struggles’ stock from Nasdaq and changes in the company’s board and leadership structure, with Carmine Di Sibio expected to be appointed as Chairman.

Heidrick & Struggles Stockholders Approve Merger Proposal

On December 5, 2025, Heidrick & Struggles held a virtual special meeting where stockholders voted on proposals related to a merger agreement with Heron BidCo, LLC. The merger proposal was approved, but the compensation proposal for executive officers was not. The merger is expected to be finalized around December 10, 2025, pending remaining conditions.

Heidrick & Struggles Merger Clears Antitrust Hurdles

On October 5, 2025, Heidrick & Struggles entered into a Merger Agreement with Heron BidCo, LLC and its subsidiary, Heron Merger Sub, Inc., to merge and become a wholly owned subsidiary of Heron BidCo. By November 17, 2025, the merger received necessary antitrust clearances from the United States, Germany, and Australia, satisfying key conditions for the merger’s completion.

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.