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Robert Half (RHI)
NYSE:RHI
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Robert Half
(NYSE:RHI)60Neutral
Positive Factors
Future Growth Prospects
Robert Half International is upgraded to Buy from Hold, reflecting confidence in its future growth prospects.
Protiviti Performance
Protiviti outperforms with revenue growth of +6.4%, beating consensus and gaining share against the Big 4.
Negative Factors
Financial Performance Challenges
4Q24 EPS guidance was below prior consensus due to both lower revenue and lighter operating margins.
Robert Half (RHI) vs. S&P 500 (SPY)
Market Cap
$5.76B
Dividend Yield3.87%
Average Volume (3M)1.44M
Price to Earnings (P/E)23.1
Beta (1Y)1.15
Revenue Growth-9.33%
EPS Growth-37.06%
CountryUS
Employees14,700
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)2.44
Shares Outstanding102,199,470
10 Day Avg. Volume1,444,347
30 Day Avg. Volume1,444,659
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.99
Price to Cash Flow (P/CF)9.30
P/FCF Ratio9.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$69.10Price Target Upside25.68% Upside
Rating ConsensusHold
Number of Analyst Covering7
Robert Half Business Overview & Revenue Model
Company DescriptionRobert Half International Inc. (RHI) is a global human resource consulting firm based in Menlo Park, California, specializing in professional staffing services and solutions. The company operates across several sectors, including finance, accounting, administrative, legal, information technology, and marketing. Robert Half provides employment services ranging from temporary, full-time, and project-based placements to consulting and managed solutions, catering to businesses of all sizes.
How the Company Makes MoneyRobert Half makes money primarily through its staffing services, which involve placing skilled professionals into temporary, full-time, and project-based roles within client organizations. The company earns revenue by charging client companies a fee for these placements, often calculated as a percentage of the employee's salary. Additionally, Robert Half's consulting and managed solutions segment provides specialized consulting services and project management, generating income through consultancy fees. Key revenue streams include temporary staffing, permanent placement, and consulting services. Strategic partnerships with various companies and a broad client base across diverse industries contribute significantly to its earnings.
Robert Half Financial Statement Overview
Summary
Robert Half's financial performance shows a stable balance sheet with low debt, but declining revenue and profit margins. Cash flow remains strong but is on a declining trend. Overall, the company's financial stability is maintained amid challenges in growth and profitability.Income Statement
Robert Half's income statement reveals a decline in total revenue from $7.24 billion in 2022 to $5.80 billion in 2024, indicating a negative revenue growth trend. Gross profit margin remains relatively stable around 39%, while net profit margin has decreased from 9.1% in 2022 to 4.3% in 2024. The EBIT and EBITDA margins have also narrowed, indicating potential cost pressures or decreased operational efficiency. Overall, profitability has been challenged, but gross profit margins suggest some level of stability.65
Positive
Balance Sheet
The balance sheet shows a healthy equity ratio of 48.3% in 2024, reflecting a balanced capital structure. The debt-to-equity ratio remains low at 0.17, indicating conservative leverage. Return on equity has decreased over time, from 42% in 2022 to 18.3% in 2024, highlighting reduced profitability impacting shareholder returns. Overall, the balance sheet indicates financial stability with low leverage but signals weakening profitability.70
Positive
Cash Flow
Cash flow analysis highlights robust free cash flow generation, although free cash flow has decreased from $622.6 million in 2022 to $354.2 million in 2024. The operating cash flow to net income ratio has improved, indicating strong cash conversion efficiency. However, free cash flow to net income has also declined, suggesting reduced cash generation relative to profitability. Overall, cash flow remains strong, albeit with some declining trends.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.16B | 5.80B | 6.39B | 7.24B | 6.46B | 5.11B | Gross Profit |
| 3.06B | 2.25B | 2.58B | 3.09B | 2.70B | 2.01B | EBIT |
| 1.07B | 242.69M | 467.47M | 1.06B | 681.43M | 270.16M | EBITDA |
| 1.04B | 330.79M | 563.56M | 1.02B | 796.96M | 408.85M | Net Income Common Stockholders |
| 682.88M | 251.60M | 411.15M | 657.92M | 598.63M | 306.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 537.58M | 537.58M | 731.74M | 658.63M | 619.00M | 574.43M | Total Assets |
| 2.85B | 2.85B | 3.01B | 2.96B | 2.95B | 2.56B | Total Debt |
| 233.52M | 233.52M | 241.90M | 237.85M | 265.08M | 302.71M | Net Debt |
| -304.06M | -304.06M | -489.84M | -420.77M | -353.92M | -271.71M | Total Liabilities |
| 1.48B | 1.48B | 1.42B | 1.40B | 1.57B | 1.35B | Stockholders Equity |
| 1.38B | 1.38B | 1.59B | 1.57B | 1.38B | 1.21B |
| Cash Flow | Free Cash Flow | ||||
| 615.97M | 354.15M | 591.01M | 622.63M | 566.52M | 563.15M | Operating Cash Flow |
| 671.74M | 410.47M | 636.88M | 683.75M | 603.14M | 596.53M | Investing Cash Flow |
| -111.69M | -87.12M | -112.25M | -116.62M | -87.61M | 9.46M | Financing Cash Flow |
| -483.52M | -496.44M | -460.54M | -509.18M | -458.59M | -315.32M |
Robert Half Technical Analysis
Negative
54.98
Price Trends
64.84
Negative
67.79
Negative
65.21
Negative
Market Momentum
-2.25
Positive
24.61
Positive
13.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHI, the sentiment is Negative. The current price of 54.98 is below the 20-day moving average (MA) of 59.03, below the 50-day MA of 64.84, and below the 200-day MA of 65.21, indicating a bearish trend. The MACD of -2.25 indicates Positive momentum. The RSI at 24.61 is Positive, neither overbought nor oversold. The STOCH value of 13.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RHI.
Robert Half Risk Analysis
Robert Half disclosed 29 risk factors in its most recent earnings report. Robert Half reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Robert Half Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.29B | 13.62 | 13.93% | 2.26% | -3.59% | 138.97% | |
71 Outperform | $907.83M | 107.99 | 1.93% | 1.51% | 7.15% | -83.77% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
61 Neutral | $2.94B | 16.93 | 9.86% | ― | -7.88% | -14.39% | |
60 Neutral | $5.76B | 23.09 | 18.26% | 3.87% | -9.33% | -37.06% | |
59 Neutral | $232.96M | ― | -18.85% | 7.93% | -17.38% | -332.04% | |
58 Neutral | $2.69B | 19.18 | 6.83% | 5.35% | -5.61% | 77.92% |
* Industrials Sector Average
Performance Comparison
RHI
Robert Half
54.98
-20.93
-27.57%
HSII
Heidrick & Struggles
44.48
12.60
39.52%
KFY
Korn Ferry
64.01
1.30
2.07%
MAN
ManpowerGroup
57.35
-11.95
-17.24%
ASGN
ASGN
66.01
-32.91
-33.27%
RGP
Resources Connection
7.04
-5.69
-44.70%
Robert Half Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -19.71% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in Protiviti's growth, strong cash flows, and increased dividends. However, these were offset by declines in global revenues and Talent Solutions, as well as decreased earnings per share. The rise in business confidence is a positive sign, but challenges remain with currency impacts and increased SG&A costs.Highlights
Protiviti Revenue Growth
Protiviti reported year-on-year revenue growth for the second consecutive quarter, with global revenues up 5% and U.S. revenues up 6%.
Strong Cash Flow
Cash flow from operations was $155 million during the fourth quarter.
Dividend Increase
The December 2024 dividend was 10.4% higher than the prior year, with a cash outlay of $54 million.
Positive Business Confidence
A significant rise in U.S. business confidence followed the recent elections, with the NFIB's Small Business Optimism Index seeing a large two-month increase.
Recognition and Awards
Protiviti was recognized on Glassdoor's Best Places to Work list and honored by Seramount as a top company for executive women. Robert Half was named one of Fortune's most admired companies for the 28th consecutive year.
Lowlights
Decrease in Global Revenues
Global enterprise revenues were $1.382 billion, down 6% from the previous year's fourth quarter.
Talent Solutions Revenue Decline
Fourth-quarter Talent Solutions revenues were down 12% year-over-year, with U.S. revenues down 11% and Non-U.S. revenues down 14%.
Earnings Decline
Debt income per share in the fourth quarter was $0.53 compared to $0.83 in the previous year.
Currency Fluctuations Impact
Currency exchange rate movements decreased reported year-over-year total revenues by $4 million.
Increased SG&A Costs
Enterprise SG&A costs were 34.1% of global revenues compared to 35.1% in the previous year.
Company Guidance
During Robert Half's Fourth Quarter 2024 Conference Call, the company provided guidance and insights into its performance metrics. For the quarter, global enterprise revenues were $1.382 billion, reflecting a 6% decrease year-over-year. Earnings per share dropped to $0.53 from $0.83 in the prior year's fourth quarter. Protiviti, a key division, reported consecutive quarterly year-over-year revenue growth, contributing to a stable performance. The company's cash flow from operations was $155 million, and a $0.53 per share cash dividend was distributed, marking a 10.4% increase from the previous year. The return on invested capital was 15%, with 1 million shares repurchased for $77 million. For Q1 2025, projected revenues range from $1.35 billion to $1.45 billion, with income per share expected between $0.31 and $0.41. The anticipated growth for Protiviti is between 8% and 10%, while Talent Solutions is expected to decline by 7% to 10%. The tax rate is projected at 31% to 35%, with capital expenditures estimated between $75 million and $95 million for the year. The company noted improved business confidence and labor market conditions, with Protiviti poised for continued growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.