tiprankstipranks
Trending News
More News >
Robert Half International (RHI)
:RHI
Advertisement

Robert Half (RHI) AI Stock Analysis

Compare
337 Followers

Top Page

RHI

Robert Half

(NYSE:RHI)

Rating:61Neutral
Price Target:
$45.00
â–²(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)

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
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
65
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
70
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
75
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.80B6.39B7.24B6.46B5.11B
Gross Profit2.25B2.58B3.09B2.70B2.01B
EBITDA330.79M563.56M1.02B796.96M408.85M
Net Income251.60M411.15M657.92M598.63M306.28M
Balance Sheet
Total Assets2.85B3.01B2.96B2.95B2.56B
Cash, Cash Equivalents and Short-Term Investments537.58M731.74M658.63M619.00M574.43M
Total Debt233.52M241.90M237.85M265.08M302.71M
Total Liabilities1.48B1.42B1.40B1.57B1.35B
Stockholders Equity1.38B1.59B1.57B1.38B1.21B
Cash Flow
Free Cash Flow354.15M591.01M622.63M566.52M563.15M
Operating Cash Flow410.47M636.88M683.75M603.14M596.53M
Investing Cash Flow-87.12M-112.25M-116.62M-87.61M9.46M
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
78
Outperform
$3.82B16.1013.49%2.31%-1.23%44.06%
71
Outperform
$838.72M17.8231.45%3.42%-6.38%-12.32%
70
Neutral
$966.50M137.371.71%1.30%6.17%-85.16%
61
Neutral
$4.07B24.2212.75%5.62%-6.95%-41.84%
59
Neutral
$2.07B18.36-0.78%5.05%-3.79%-138.56%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
57
Neutral
$2.24B36.1148.65%4.04%1.90%-60.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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