Heidrick & Struggles (HSII) AI Stock Analysis

• Market Cap: $996.17M
• Dividend Yield: 1.21%
• Average Volume (3M): 107.49K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.91
• Revenue Growth: 8.89%
• EPS Growth: -13.57%
• Country: US
• Employees: 2,210
• Sector: Industrials
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): 0.85
• Shares Outstanding: 20,736,301
• 10 Day Avg. Volume: 118,133
• 30 Day Avg. Volume: 107,490
• 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: 0.68
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 7.10
• 1Y Price Target: $50.00
• Price Target Upside: 0.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $50.00 ▲(0.85% Upside)

Heidrick & Struggles' overall stock score is driven by solid financial performance and a positive earnings call, indicating strong revenue growth and a robust financial position. However, the stock's valuation appears high, and technical indicators suggest neutral to weak momentum. Increased operating expenses and macroeconomic uncertainties are notable risks.

Positive Factors

Business Momentum

Heidrick Consulting segment revenue increased 11% YOY, with business momentum accelerating and strong new project confirmations indicating sustained momentum.

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 Potential

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

Economic Environment

Heidrick & Struggles continues to execute and perform well in an uncertain economic and political environment that is not providing strong macro tailwinds.

Profitability

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 (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 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	276.11M	275.48M	238.28M	178.95M
EBITDA	95.32M	92.80M	101.11M	122.87M	125.59M	161.81M
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: 49.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 49.58 is above the 20-day moving average (MA) of 45.87, above the 50-day MA of 45.44, and above the 200-day MA of 43.74, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 68.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.13 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	76 Outperform	$3.73B	15.60	13.49%	2.28%	-1.23%	44.06%
HSII	69 Neutral	$996.17M	30.23	7.18%	1.21%	8.89%	-13.57%
KFRC	69 Neutral	$595.17M	13.53	29.14%	4.81%	-5.77%	-11.93%
RHI	61 Neutral	$3.54B	19.89	12.75%	6.11%	-6.95%	-41.84%
MAN	58 Neutral	$1.84B	18.36	-0.78%	5.41%	-3.79%	-138.56%
Sector *	58 Neutral	HK$13.61B	5.49	-2.78%	5.73%	2.29%	-57.50%
ZIP	44 Neutral	$358.61M	225.24	-2897.28%	―	-16.20%	-222.75%

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.