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Robert Half (RHI)
NYSE:RHI
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Robert Half
(NYSE:RHI)
Rating:61Neutral
Price Target:
$45.00
â–²(5.02%Upside)
Positive Factors
Cost Management
The company announced a restructuring plan to reduce corporate overhead that should lower costs by approximately $20 million per quarter.
Growth and Prospects
Management remains confident in the company’s positioning and prospects in the next upcycle for talent solutions demand.
Technology Expansion
One of the best-operated companies in the staffing space, expanding its technology offerings to help mitigate some cyclical aspects.
Negative Factors
Economic Impact
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 and Earnings Forecast
Second-quarter guidance also came in well below expectations for both revenue and earnings.
Robert Half (RHI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend Yield5.48%
Average Volume (3M)1.87M
Price to Earnings (P/E)21.4
Beta (1Y)1.02
Revenue Growth-7.81%
EPS Growth-40.22%
CountryUS
Employees14,700
SectorIndustrials
Sector Strength86
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding102,163,765
10 Day Avg. Volume2,721,422
30 Day Avg. Volume1,865,494
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)3.09
Price to Sales (P/S)0.00
P/FCF Ratio13.28
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda2.88
Forecast
1Y Price Target
$45.60Price Target Upside6.42% Upside
Rating ConsensusHold
Number of Analyst Covering7
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 Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -6.56%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Negative
The earnings call highlighted Protiviti's revenue growth and strategic cost reductions, showing some optimism about future operations. However, these positive aspects were overshadowed by significant revenue and income declines, as well as challenges related to client caution and economic uncertainty.Q1-2025 Updates
Positive Updates
Protiviti Revenue Growth
Protiviti global revenues in the first quarter were $477 million, showing a 5% increase year-over-year on an adjusted basis. U.S. Protiviti revenues were up 4%, while non-U.S. Protiviti revenues were up 8% compared to one year ago.
Dividend Growth
In March, Robert Half distributed a $0.59 per share cash dividend, an 11.3% increase from the prior year, with the dividend growing an average of 11.6% annually since its inception in 2004.
Cost Reduction and Efficiency Gains
Robert Half implemented cost actions expected to result in annual savings of $80 million, with $18 million recognized in Q2 and $20 million in subsequent quarters.
Technology and AI Adoption
Notable early traction with AI to enhance recruitment efficiency, leading to fewer calls needed to secure client visits and improved conversion rates.
Negative Updates
Decline in Global Revenues
Global enterprise revenues for the first quarter were $1.352 billion, down 8% from the previous year on a reported basis and down 6% on an adjusted basis.
Significant Drop in Net Income
Net income per share declined to $0.17 in the first quarter, compared to $0.61 in the previous year's first quarter.
Talent Solutions Revenue Decrease
First-quarter Talent Solutions revenues declined by 11% year-over-year on an adjusted basis, with U.S. revenues down 10% and non-U.S. revenues down 15%.
Client and Job Seeker Caution
Heightened economic uncertainty led to elongated decision cycles, subdued hiring activity, and new project starts.
Cash Flow Usage
Cash flow used in operations during the quarter was $59 million, impacted by seasonal factors such as bonus payments and SaaS subscription renewals.
Company Guidance
During the Robert Half First Quarter 2025 Conference Call, several metrics were highlighted to provide guidance on the company's performance and outlook. Global enterprise revenues in the first quarter were reported at $1.352 billion, reflecting an 8% decrease from the previous year on a reported basis and a 6% decrease on an adjusted basis. The company's net income per share stood at $0.17, a significant drop from $0.61 in the prior year, influenced by one-time charges of $0.13 per share due to cost actions aimed at reducing administrative expenses. Cash flow used in operations was $59 million, with a cash dividend of $0.59 per share distributed in March. Robert Half repurchased approximately 650,000 shares for $39 million, with 6.6 million shares available for further repurchase. The first quarter saw a return on invested capital of 5%. Guidance for the second quarter includes expected revenues ranging from $1.31 billion to $1.41 billion, with income per share forecasted between $0.36 and $0.46. Adjusted revenue growth expectations are down 10% to 14% for Talent Solutions and up 1% to 4% for Protiviti. Adjusted gross margin percentages for contract talent are anticipated to be between 38% and 40%, with Protiviti margins expected to range from 21% to 24%.Robert Half Financial Statement Overview
Summary
Robert Half demonstrates solid financial management with a strong balance sheet and effective cash flow generation. However, declining revenue and profit margins pose challenges to growth, impacting the overall financial performance assessment.Income Statement
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.65
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.67B | 5.80B | 6.39B | 7.24B | 6.46B | 5.11B |
| Gross Profit | 2.17B | 2.25B | 2.58B | 3.09B | 2.70B | 2.01B |
| EBITDA | 327.90M | 330.79M | 563.56M | 1.02B | 796.96M | 408.85M |
| Net Income | 205.25M | 251.60M | 411.15M | 657.92M | 598.63M | 306.28M |
Balance Sheet | ||||||
| Total Assets | 2.70B | 2.85B | 3.01B | 2.96B | 2.95B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 342.47M | 537.58M | 731.74M | 658.63M | 619.00M | 574.43M |
| Total Debt | 242.63M | 233.52M | 241.90M | 237.85M | 265.08M | 302.71M |
| Total Liabilities | 1.38B | 1.48B | 1.42B | 1.40B | 1.57B | 1.35B |
| Stockholders Equity | 1.31B | 1.38B | 1.59B | 1.57B | 1.38B | 1.21B |
Cash Flow | ||||||
| Free Cash Flow | 310.11M | 354.15M | 591.01M | 622.63M | 566.52M | 563.15M |
| Operating Cash Flow | 367.04M | 410.47M | 636.88M | 683.75M | 603.14M | 596.53M |
| Investing Cash Flow | -97.79M | -87.12M | -112.25M | -116.62M | -87.61M | 9.46M |
| Financing Cash Flow | -464.28M | -496.44M | -460.54M | -509.18M | -458.59M | -315.32M |
Robert Half Technical Analysis
Neutral
42.85
Price Trends
44.12
Negative
48.70
Negative
58.34
Negative
Market Momentum
-0.77
Negative
48.62
Neutral
78.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHI, the sentiment is Neutral. The current price of 42.85 is above the 20-day moving average (MA) of 42.49, below the 50-day MA of 44.12, and below the 200-day MA of 58.34, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.84B | 16.08 | 13.49% | 2.57% | -1.23% | 44.06% | |
70 Neutral | $977.84M | 138.98 | 1.71% | 1.26% | 6.17% | -85.16% | |
67 Neutral | $811.34M | 17.24 | 31.45% | 3.58% | -6.38% | -12.32% | |
65 Neutral | $10.77B | 15.80 | 5.51% | 1.90% | 3.03% | -26.66% | |
61 Neutral | $4.38B | 21.40 | 14.49% | 5.48% | -7.81% | -40.22% | |
57 Neutral | $2.31B | 37.12 | 48.65% | 3.89% | 1.90% | -60.33% | |
57 Neutral | $2.05B | 19.20 | 5.19% | 3.27% | -5.52% | 133.51% |
* Industrials Sector Average
Performance Comparison
RHI
Robert Half
42.85
-19.02
-30.74%
HSII
Heidrick & Struggles
48.52
17.62
57.02%
NSP
Insperity
61.36
-24.99
-28.94%
KFRC
Kforce
43.75
-16.19
-27.01%
KFY
Korn Ferry
73.98
9.13
14.08%
MAN
ManpowerGroup
44.26
-23.41
-34.59%
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.