Huron Consulting (HURN) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: N/A
• Average Volume (3M): 140.41K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.56
• Revenue Growth: 12.50%
• EPS Growth: 29.40%
• Country: US
• Employees: 6,405
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 2.10
• Shares Outstanding: 17,241,468
• 10 Day Avg. Volume: 162,668
• 30 Day Avg. Volume: 140,411
• PEG Ratio: 0.20
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 11.54
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 15.42
• 1Y Price Target: $207.33
• Price Target Upside: 11.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 8.74
• Revenue Forecast (FY): $1.82B

• Rating: 75 Outperform
• Price Target: $209.00 ▲(12.62% Upside)

Huron Consulting's strong financial performance and positive earnings call outlook are significant strengths, contributing to a favorable stock score. However, the high P/E ratio suggests potential overvaluation, and increased leverage poses a risk if not managed carefully. Technical indicators show a neutral trend, neither strongly positive nor negative.

Positive Factors

Revenue Growth

Strong revenue growth across all segments indicates robust demand and effective execution, enhancing long-term market position.

Healthcare Segment Expansion

Record growth in the healthcare segment solidifies Huron's leadership in a key market, supporting sustained revenue streams.

Strategic Acquisition

The acquisition expands Huron’s capabilities in the payor ecosystem, enhancing its service offerings and competitive edge in healthcare.

Negative Factors

Increased Leverage

Higher leverage can constrain financial flexibility and increase risk, potentially impacting future investment and growth opportunities.

Decreased Commercial Segment Margin

Declining margins in the Commercial segment may pressure overall profitability, affecting long-term financial performance.

Increased Corporate Expenses

Rising corporate expenses could erode profit margins and reduce cash available for strategic initiatives and growth investments.

Huron Consulting Business Overview & Revenue Model

Company Description

Huron Consulting Group Inc., a professional services firm, provides consultancy services in the United States and internationally. It operates through three segments: Healthcare, Business Advisory, and Education. The Healthcare segment provides advisory services in the areas of financial and operational improvement, care transformation, and revenue cycle managed services; organizational transformation; and digital, technology and analytic solutions to national and regional hospitals, integrated health systems, academic medical centers, community hospitals, medical groups, and health plans. The Business Advisory segment offers cloud-based technology, analytics, restructuring, and capital advisory solutions to life science, financial, healthcare, education, energy and utilities, and industrials and manufacturing industries, as well as to public sectors. The Education segment provides research enterprise and student lifecycle; digital, technology and analytic solutions; and organizational transformation services to public and private colleges and universities, academic medical centers, research institutes, and other not-for-profit organizations. Huron Consulting Group Inc. was incorporated in 2002 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Huron Consulting generates revenue primarily through its consulting services, which encompass a wide range of advisory and implementation projects. The company charges fees based on hourly rates or fixed project costs, depending on the nature of the engagement. Key revenue streams include consulting contracts with healthcare institutions, educational organizations, and corporate clients, often tied to performance improvement or transformation initiatives. Additionally, Huron may benefit from partnerships with technology providers and other consulting firms that enhance its service offerings, contributing to its overall earnings. The firm's ability to establish long-term relationships with clients also plays a crucial role in its revenue generation, as repeat business and referrals are significant factors in its growth strategy.

Huron Consulting Financial Statement Overview

Summary

Huron Consulting exhibits strong financial health with consistent revenue growth and improved leverage. While profitability margins have seen some decline, operational efficiency remains robust. The balance sheet shows reduced debt levels, enhancing financial stability, and cash flow metrics indicate effective cash management. Overall, the company is well-positioned for continued growth and stability.

Income Statement

Huron Consulting shows a consistent revenue growth trend with a TTM growth rate of 3.97% and a strong historical growth trajectory. The gross profit margin has decreased from 31.28% in 2024 to 22.91% in TTM, indicating potential cost pressures. Net profit margin has also declined to 6.54% in TTM from 7.66% in 2024, reflecting reduced profitability. However, EBIT and EBITDA margins remain stable, suggesting operational efficiency.

Balance Sheet

The company has significantly improved its debt-to-equity ratio from 0.71 in 2024 to 0.12 in TTM, indicating reduced leverage and enhanced financial stability. Return on equity is strong at 21.35% in TTM, showcasing effective use of equity to generate profits. The equity ratio is healthy, reflecting a solid capital structure.

Cash Flow

Huron Consulting demonstrates robust cash flow management with a free cash flow growth rate of 6.78% in TTM. The operating cash flow to net income ratio is 0.63, indicating strong cash generation relative to net income. The free cash flow to net income ratio is high at 0.93, suggesting efficient conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.63B	1.49B	1.36B	1.13B	905.64M	844.13M
Gross Profit	514.04M	476.01M	419.36M	346.57M	268.86M	251.70M
EBITDA	210.09M	184.29M	159.69M	133.18M	87.80M	78.14M
Net Income	108.38M	116.63M	62.48M	75.55M	62.99M	-23.72M
Balance Sheet
Total Assets	1.54B	1.34B	1.26B	1.20B	1.12B	1.05B
Cash, Cash Equivalents and Short-Term Investments	23.89M	21.91M	12.15M	11.83M	20.78M	67.18M
Total Debt	650.89M	398.61M	373.88M	346.09M	297.24M	273.88M
Total Liabilities	1.04B	782.29M	729.25M	647.00M	547.45M	499.03M
Stockholders Equity	499.78M	561.33M	532.89M	552.04M	571.90M	551.94M
Cash Flow
Free Cash Flow	191.53M	192.67M	100.08M	61.10M	2.23M	120.34M
Operating Cash Flow	206.60M	201.32M	135.26M	85.40M	17.99M	136.74M
Investing Cash Flow	-164.88M	-79.75M	-36.65M	-20.13M	-20.14M	-42.03M
Financing Cash Flow	-36.07M	-111.64M	-98.33M	-74.11M	-44.41M	-39.62M

Huron Consulting Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HURN, the sentiment is Positive. The current price of 185.58 is above the 20-day moving average (MA) of 179.67, above the 50-day MA of 172.65, and above the 200-day MA of 149.28, indicating a bullish trend. The MACD of 3.21 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 81.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HURN.

Huron Consulting Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.43B	26.13	27.83%	0.97%	8.69%	34.58%
EXPO	78 Outperform	$3.71B	36.51	25.79%	1.66%	4.90%	-1.52%
FCN	76 Outperform	$5.48B	22.65	13.30%	―	-0.95%	-10.54%
HURN	75 Outperform	$3.20B	30.75	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.79B	18.26	9.88%	0.65%	-3.81%	-7.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RGP	52 Neutral	$156.12M	-1.15	-61.44%	6.74%	-10.83%	-1669.11%