Huron Consulting (HURN) AI Stock Analysis

• Market Cap: $2.32B
• Dividend Yield: N/A
• Average Volume (3M): 279.50K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.39
• Revenue Growth: 8.83%
• EPS Growth: 92.48%
• Country: US
• Employees: 7,230
• Sector: Industrials
• Sector Strength: 75
• Industry: Consulting Services
• EPS (TTM): 6.67
• Shares Outstanding: 17,248,034
• 10 Day Avg. Volume: 234,040
• 30 Day Avg. Volume: 279,500
• PEG Ratio: 0.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $165.67
• Price Target Upside: 22.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Huron Consulting's stock benefits from strong financial performance and positive earnings call insights, with healthy revenue and profit growth. However, technical analysis suggests potential near-term weakness, and valuation metrics indicate the stock is fairly priced. Challenges in healthcare expenses and commercial margins are key risks to monitor.

Positive Factors

Client Demand

Huron's practices are experiencing increased client demand, showcasing its competitive advantages in leadership and capabilities.

Financial Performance

Net revenue rose 11% y/y to $396M, with Adj EBITDA rising 23% to $41.5M, and a margin of 10.5%.

Growth Potential

Management's goals include doubling adjusted EPS by 2029, indicating strong growth potential.

Negative Factors

Commercial Segment Challenges

Commercial segment margin declined 460 bps to 17.8% due to higher compensation expense and contractor expenses.

Consulting Segment Struggles

The commercial segment underperformed due to declines in strategy consulting, although a rebound is expected with accelerating financial advisory work.

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 makes money primarily through the provision of consulting services, which is its main revenue stream. The company earns fees by engaging in projects with clients in diverse industries such as healthcare, education, and life sciences, where it provides strategic advice and solutions to improve performance and efficiency. Revenue is typically generated on a project basis, with fees depending on the scope and duration of each engagement. Additionally, Huron may have long-term contracts or retainer agreements with some clients, which provide a steady income. The company's earnings are further influenced by its ability to maintain strong client relationships and secure repeat business, as well as its investments in expanding service offerings and geographic reach.

Huron Consulting Financial Statement Overview

Summary

Huron Consulting exhibits strong financial performance with consistent revenue growth, improved profitability, and effective cash flow management. The company has successfully reduced its financial leverage, enhancing its balance sheet stability. While there are minor areas for improvement in operating efficiency and managing increasing liabilities, the overall financial health of the company is solid, positioning it well for future growth.

Income Statement

Huron Consulting has demonstrated strong revenue growth over the past few years, with a notable increase from $1,398 million in 2023 to $1,522 million in 2024, reflecting a growth rate of approximately 8.76%. The company maintains a healthy gross profit margin of 100%, indicating effective cost management. The net profit margin improved significantly from 4.47% in 2023 to 7.66% in 2024, driven by increased net income. However, the EBIT margin decreased slightly to 11.10% in 2024, and the EBITDA margin stood at 10.09%. Overall, the income statement reflects solid profitability and growth, with room for improvement in operating efficiency.

Balance Sheet

The balance sheet reveals a stable financial position for Huron Consulting, with an equity ratio of 41.78% in 2024, indicating a balanced capital structure. The debt-to-equity ratio improved significantly to 0.10 in 2024, suggesting reduced financial leverage. Return on equity (ROE) increased to 20.78% in 2024, showcasing strong shareholder value creation. Despite these strengths, the total liabilities have been increasing, which could pose future risks if not managed carefully.

Cash Flow

Huron Consulting's cash flow statement shows robust free cash flow growth, with a dramatic increase from $100 million in 2023 to $193 million in 2024. The operating cash flow to net income ratio is strong at 1.73, highlighting effective cash generation from operations. Additionally, the free cash flow to net income ratio is notably high at 1.65, reflecting efficient capital expenditure management. While the company has shown excellent cash flow management, continued focus on sustaining cash flow growth is essential.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.52B	1.40B	1.16B	926.96M	871.01M
	Gross Profit
1.52B	419.29M	346.41M	268.81M	251.67M
	EBIT
168.82M	125.35M	99.76M	78.04M	131.53M
	EBITDA
204.03M	161.84M	154.19M	120.64M	12.82M
	Net Income Common Stockholders
116.63M	62.48M	75.55M	62.99M	-23.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.91M	12.15M	11.83M	20.78M	67.18M
	Total Assets
1.34B	1.26B	1.20B	1.12B	1.06B
	Total Debt
55.75M	373.88M	346.09M	297.24M	273.88M
	Net Debt
33.84M	361.73M	334.25M	276.45M	206.70M
	Total Liabilities
782.29M	729.25M	647.00M	547.45M	505.53M
	Stockholders Equity
561.33M	532.89M	552.04M	571.90M	551.94M
Cash Flow		Free Cash Flow
192.67M	100.08M	61.10M	2.23M	120.34M
	Operating Cash Flow
201.32M	135.26M	85.40M	17.99M	136.74M
	Investing Cash Flow
-79.75M	-36.65M	-20.13M	-20.14M	-42.03M
	Financing Cash Flow
-111.64M	-98.33M	-74.11M	-44.41M	-39.62M

Huron Consulting Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 134.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HURN, the sentiment is Negative. The current price of 134.79 is below the 20-day moving average (MA) of 139.47, below the 50-day MA of 141.59, and above the 200-day MA of 122.04, indicating a neutral trend. The MACD of -1.93 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 37.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HURN.

Huron Consulting Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BAH	78 Outperform	$13.78B	16.22	75.34%	1.74%	14.07%	116.33%
FCN	75 Outperform	$5.57B	22.19	12.46%	―	1.59%	-16.79%
HURN	74 Outperform	$2.32B	20.22	21.32%	―	8.83%	92.48%
ICFI	70 Outperform	$1.56B	14.59	11.60%	0.66%	2.88%	33.76%
EXPO	70 Outperform	$3.99B	37.22	28.05%	1.45%	4.05%	8.71%
CRAI	70 Neutral	$1.10B	24.08	21.96%	1.12%	10.17%	24.74%
Sector *	63 Neutral	$4.23B	11.54	5.34%	209.77%	4.14%	-9.49%