Robert Half (RHI) AI Stock Analysis

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Robert Half

(NYSE:RHI)

Rating:61Neutral

Price Target:

$45.00

▲(12.95%Upside)

Robert Half's overall stock score reflects challenges in financial performance, bearish technical indicators, and cautious earnings call sentiment. While the company maintains a strong cash flow and balance sheet, declining revenues and profitability weigh heavily. A positive note is the high dividend yield and stockholder confidence, which provide some support.

Positive Factors

Client Confidence

Client confidence has improved across both businesses.

Cost Management

The company announced a restructuring plan to reduce corporate overhead that should lower costs by approximately $20 million per quarter.

Market Position

Robert Half is a dominant leader in professional staffing with expertise in accounting and finance, supported by a significant service model and technology investments.

Negative Factors

Economic Uncertainty

Economic uncertainty has led to a deterioration in client hiring activity, affecting staffing revenues.

Financial Performance

Robert Half announced EPS below the company’s guidance, indicating weaker than expected financial performance.

Revenue Expectations

Third-quarter guidance came in below expectations for both revenue and earnings.

Robert Half (RHI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.07B

Dividend Yield5.62%

Average Volume (3M)2.15M

Price to Earnings (P/E)24.2

Beta (1Y)1.02

Revenue Growth-6.95%

EPS Growth-41.84%

CountryUS

Employees14,700

SectorIndustrials

Sector Strength94

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)0.41

Shares Outstanding102,163,765

10 Day Avg. Volume1,953,768

30 Day Avg. Volume2,153,643

Financial Highlights & Ratios

PEG Ratio-1.12

Price to Book (P/B)3.14

Price to Sales (P/S)0.00

P/FCF Ratio13.51

Enterprise Value/Market Cap0.91

Enterprise Value/Revenue0.18

Enterprise Value/Gross Profit1.78

Enterprise Value/Ebitda1.50

Forecast

1Y Price Target

$47.40

Price Target Upside18.98% Upside

Rating ConsensusHold

Number of Analyst Covering6

Robert Half Business Overview & Revenue Model

Company DescriptionRobert Half International Inc. is a global human resource consulting firm based in Menlo Park, California. The company specializes in providing staffing services and solutions in various sectors, including finance, accounting, administrative, legal, and technology. It operates through three main divisions: Accountemps, Robert Half Finance & Accounting, and Robert Half Technology, offering both temporary and permanent placement services to companies and job seekers worldwide.

How the Company Makes MoneyRobert Half generates revenue primarily through its staffing services, which involve placing temporary and permanent employees in various industries. The company earns money by charging client companies a fee for each successful placement, which is typically a percentage of the employee's salary or hourly wage. Additionally, Robert Half provides consulting and project-based solutions, further diversifying its revenue streams. Key factors contributing to its earnings include strong client relationships, a large pool of qualified candidates, and its extensive global network. Partnerships with Fortune 500 companies and a reputation for delivering high-quality staffing solutions also play a significant role in its financial success.

Robert Half Key Performance Indicators (KPIs)

Any

Income by Segment

Income by Segment
Details the net income generated by each segment, providing insight into which parts of the business are most profitable and sustainable.

Chart InsightsRobert Half's Contract Talent segment is experiencing a sharp decline, reflecting broader challenges in the Talent Solutions area, as highlighted by an 11% revenue drop. In contrast, Protiviti shows resilience with steady growth, supported by strategic cost reductions and AI adoption. Despite Protiviti's positive trajectory, the overall outlook remains cautious due to economic uncertainties affecting client decisions and hiring activities. Management's focus on efficiency and technology may mitigate some risks, but the Talent segment's recovery will be crucial for future stability.

Data provided by:

Main Street Data

Robert Half Earnings Call Summary

Earnings Call Date:Jul 23, 2025

(Q2-2025)

% Change Since: -6.04%|

Next Earnings Date:Oct 28, 2025

Earnings Call Sentiment Negative

The earnings call highlighted several challenges, including a significant decline in global revenues and net income, increased SG&A costs, and a higher tax rate. However, there were positive aspects such as the increase in cash dividends and strong performance in non-U.S. Protiviti revenues. The overall sentiment suggests a cautious outlook, with more lowlights than highlights indicating ongoing economic challenges.

Q2-2025 Updates

Positive Updates

Cash Dividend Increase

In June, Robert Half distributed a $0.59 per share cash dividend, which was 11.3% higher than the prior year, continuing a trend of average annual dividend growth of 11.5% since 2004.

Protiviti Non-U.S. Revenue Growth

Non-U.S. Protiviti revenues were up 11% compared to one year ago, driven by strong performance in Europe, particularly Germany, and large joint go-to-market projects with talent solutions.

Technology Solutions Performance

Technology solutions were noted as the strongest part of the practice groups, with continued strength in tech modernization, ERP upgrades, and security privacy, partly related to AI readiness.

Negative Updates

Decline in Global Revenues

Global enterprise revenues for the second quarter were $1.37 billion, down 7% from the previous year, with adjusted talent solutions revenues down 11% year-over-year.

Decrease in Net Income and Earnings Per Share

Net income per share in the second quarter was $0.41, compared to $0.66 in the same quarter one year ago, reflecting a significant decline.

Protiviti U.S. Revenue Decline

U.S. Protiviti revenues were down 1% year-over-year, with a reduction in average project size and extended conversion timelines contributing to the decline.

Increased SG&A Costs

Enterprise SG&A costs rose to 37.1% of global revenues, compared to 34% a year ago, reflecting increased operational expenses.

Tax Rate Increase

The second-quarter tax rate increased to 33% from 29% one year ago, due to higher non-deductible expenses relative to lower pre-tax income.

Permanent Placement Revenue Decline

Permanent placement revenues in June were down 20% versus June of 2024, and down 14% for the first three weeks in July compared to the same period in 2024.

Company Guidance

During the Robert Half Second Quarter 2025 Conference Call, the company provided guidance for the third quarter, projecting revenues between $1.31 billion and $1.41 billion, with income per share ranging from $0.37 to $0.47. The company anticipates that midpoint revenues of $1.36 billion will be down 8% year-over-year on an adjusted basis, but only a 3% sequential decline. Adjusted revenue growth is expected to decrease year-over-year for talent solutions by 9% to 13%, remain flat to down 4% for Protiviti, and overall decline by 6% to 10%. Adjusted gross margin percentages are expected to range from 38% to 40% for contract talent and 22% to 24% for Protiviti. Adjusted operating income as a percentage of revenue is forecasted to be 2% to 4% for talent solutions and 6% to 8% for Protiviti, with an overall expectation of 3% to 6%. The expected tax rate is between 31% and 35%, and shares are projected to range from 100 million to 101 million. Additionally, capital expenditures and capitalized cloud computing costs for 2025 are estimated to be between $75 million and $90 million, with $15 million to $25 million in the third quarter.

Robert Half Financial Statement Overview

Summary

Robert Half demonstrates solid financial management with strong cash flow generation and a stable balance sheet. However, declining revenue and profit margins pose challenges to growth. The company's financial stability is evident, but strategic actions are needed to address reduced operational efficiency and profitability.

Income Statement

Positive

The company shows a declining revenue trend, with total revenue dropping from previous periods. Gross profit margin remains healthy at 38.3% for TTM, yet the net profit margin has decreased to 3.6% from higher levels in prior years. The EBIT and EBITDA margins are also lower, reflecting reduced operational efficiency. These factors suggest moderate performance in profitability and growth.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.18, indicating low leverage. The equity ratio is strong at 48.7%, showcasing a robust equity base relative to total assets. However, the return on equity (ROE) has decreased to 15.6% in the TTM, suggesting reduced profitability on equity.

Cash Flow

Positive

The cash flow statement highlights a strong operating cash flow to net income ratio of 1.79, indicating efficient cash generation from operations. Free cash flow remains positive, although the free cash flow growth rate is negative due to lower profitability. The company maintains a solid cash flow position despite some fluctuations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.80B	6.39B	7.24B	6.46B	5.11B
Gross Profit	2.25B	2.58B	3.09B	2.70B	2.01B
EBITDA	330.79M	563.56M	1.02B	796.96M	408.85M
Net Income	251.60M	411.15M	657.92M	598.63M	306.28M
Balance Sheet
Total Assets	2.85B	3.01B	2.96B	2.95B	2.56B
Cash, Cash Equivalents and Short-Term Investments	537.58M	731.74M	658.63M	619.00M	574.43M
Total Debt	233.52M	241.90M	237.85M	265.08M	302.71M
Total Liabilities	1.48B	1.42B	1.40B	1.57B	1.35B
Stockholders Equity	1.38B	1.59B	1.57B	1.38B	1.21B
Cash Flow
Free Cash Flow	354.15M	591.01M	622.63M	566.52M	563.15M
Operating Cash Flow	410.47M	636.88M	683.75M	603.14M	596.53M
Investing Cash Flow	-87.12M	-112.25M	-116.62M	-87.61M	9.46M
Financing Cash Flow	-496.44M	-460.54M	-509.18M	-458.59M	-315.32M

Robert Half Technical Analysis

Technical Analysis Sentiment

Negative

Last Price39.84

Price Trends

50DMA

43.42

Negative

100DMA

46.39

Negative

200DMA

56.76

Negative

Market Momentum

MACD

-0.47

Negative

RSI

38.88

Neutral

STOCH

54.67

Neutral

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 39.84 is below the 20-day moving average (MA) of 41.86, below the 50-day MA of 43.42, and below the 200-day MA of 56.76, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 54.67 is Neutral, 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 (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	78 Outperform	$3.82B	16.10	13.49%	2.31%	-1.23%	44.06%
KFRC	71 Outperform	$838.72M	17.82	31.45%	3.42%	-6.38%	-12.32%
HSII	70 Neutral	$966.50M	137.37	1.71%	1.30%	6.17%	-85.16%
RHI	61 Neutral	$4.07B	24.22	12.75%	5.62%	-6.95%	-41.84%
MAN	59 Neutral	$2.07B	18.36	-0.78%	5.05%	-3.79%	-138.56%
Sector *	58 Neutral	HK$14.94B	4.62	-2.78%	5.07%	3.80%	-54.55%
NSP	57 Neutral	$2.24B	36.11	48.65%	4.04%	1.90%	-60.33%

* Industrials Sector Average

Performance Comparison

RHI

Robert Half

39.84

-21.18

-34.71%

HSII

Heidrick & Struggles

46.23

10.96

31.07%

NSP

Insperity

59.44

-38.08

-39.05%

KFRC

Kforce

46.36

-19.26

-29.35%

KFY

Korn Ferry

73.54

3.93

5.65%

MAN

ManpowerGroup

44.76

-27.53

-38.08%

Robert Half Corporate Events

Private Placements and Financing

Robert Half Secures New $100 Million Credit Agreement

Neutral

May 29, 2025

On May 28, 2025, Robert Half entered into a new $100 million credit agreement with Bank of America, N.A. as the administrative agent, replacing its previous agreement from May 11, 2020. The new agreement includes customary financial covenants and conditions, with BofA Securities, Inc. serving as the sole bookrunner and lead arranger. Additionally, Protiviti Inc., RH-TM Resources, Inc., and Protiviti Government Services, Inc. have agreed to guarantee the obligations under this new credit agreement.

The most recent analyst rating on (RHI) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Robert Half stock, see the RHI Stock Forecast page.

Executive/Board ChangesShareholder Meetings

Robert Half Stockholders Approve Key Proposals at Meeting

Positive

May 15, 2025

On May 14, 2025, Robert Half held its annual meeting of stockholders, where three key matters were voted on: the election of nine directors, the approval of executive compensation on an advisory basis, and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. The election of directors saw varying levels of support, with all nominees receiving a majority of votes. The executive compensation proposal was approved with a significant majority, and the appointment of PricewaterhouseCoopers LLP was ratified with overwhelming support, indicating strong stockholder confidence in the company’s leadership and financial oversight.

The most recent analyst rating on (RHI) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Robert Half stock, see the RHI Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 25, 2025