NasdaqCM:HQI

Stock Analysis Report

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Executive Summary

HireQuest, Inc. provides on-demand and temporary staffing solutions in the United States. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has HireQuest's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HQI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: HQI's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

HQI

-2.7%

US Professional Services

-1.4%

US Market


1 Year Return

123.1%

HQI

22.3%

US Professional Services

37.1%

US Market

Return vs Industry: HQI exceeded the US Professional Services industry which returned 23.2% over the past year.

Return vs Market: HQI exceeded the US Market which returned 34.1% over the past year.


Shareholder returns

HQIIndustryMarket
7 Day1.5%-2.7%-1.4%
30 Day50.0%0.2%1.6%
90 Day73.1%2.4%7.3%
1 Year126.0%123.1%23.2%22.3%40.2%37.1%
3 Yearn/a57.8%53.5%62.5%52.1%
5 Yearn/a123.4%111.2%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is HireQuest's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HireQuest undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HQI ($15.15) is trading below our estimate of fair value ($59.31)

Significantly Below Fair Value: HQI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HQI is good value based on its PE Ratio (25.7x) compared to the US Professional Services industry average (28x).

PE vs Market: HQI is poor value based on its PE Ratio (25.7x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HQI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HQI is overvalued based on its PB Ratio (5.8x) compared to the US Professional Services industry average (3.9x).


Next Steps

Future Growth

How is HireQuest forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.5%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as HireQuest has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has HireQuest performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HQI has a large one-off gain of $2.9M impacting its September 30 2020 financial results.

Growing Profit Margin: HQI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HQI's earnings have declined by 19.4% per year over the past 5 years.

Accelerating Growth: HQI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HQI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (-1.1%).


Return on Equity

High ROE: HQI's Return on Equity (22.5%) is considered high.


Next Steps

Financial Health

How is HireQuest's financial position?


Financial Position Analysis

Short Term Liabilities: HQI's short term assets ($39.6M) exceed its short term liabilities ($10.3M).

Long Term Liabilities: HQI's short term assets ($39.6M) exceed its long term liabilities ($3.5M).


Debt to Equity History and Analysis

Debt Level: HQI is debt free.

Reducing Debt: HQI had no debt 5 years ago.

Debt Coverage: HQI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HQI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is HireQuest current dividend yield, its reliability and sustainability?

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HQI's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: HQI's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (3.75%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HQI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HQI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.5%), HQI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Richard Hermanns (56 yo)

1.58yrs

Tenure

US$1,088,327

Compensation

Mr. Richard F. Hermanns has been Chairman, President and Chief Executive Officer of HireQuest Inc. (formerly known as Command Center, Inc.) since July 15, 2019. Mr. Richard F. Hermanns Mr. Hermanns previou...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD1.09M) is about average for companies of similar size in the US market ($USD950.27K).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Hermanns
Chairman1.58yrsUS$1.09m26.09%
$ 53.2m
Cory Smith
CFO & Treasurer3.58yrsUS$466.48k0.20%
$ 417.1k
John McAnnar
Executive VP1.58yrsUS$413.68k0.24%
$ 495.3k
David Hartley
Director of Corporate Development0.50yrno datano data

1.6yrs

Average Tenure

44yo

Average Age

Experienced Management: HQI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Richard Hermanns
Chairman1.58yrsUS$1.09m26.09%
$ 53.2m
Lawrence Hagenbuch
Independent Director2.83yrsUS$151.90k0.46%
$ 945.1k
Kathleen Shanahan
Independent Director1.58yrsUS$132.78k0.25%
$ 511.4k
Jack Olmstead
Independent Director0.67yrno data0.060%
$ 123.4k
R. Malhotra
Independent Vice Chairman1.58yrsUS$160.06k0.38%
$ 782.4k
Edward Jackson
Independent Director1.58yrsUS$130.85k18.91%
$ 38.6m
Payne Brown
Independent Director1.58yrsUS$132.78k0.23%
$ 469.2k

1.6yrs

Average Tenure

56yo

Average Age

Experienced Board: HQI's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HireQuest, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HireQuest, Inc.
  • Ticker: HQI
  • Exchange: NasdaqCM
  • Founded: 2002
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$203.938m
  • Shares outstanding: 13.60m
  • Website: https://www.hirequest.com

Number of Employees


Location

  • HireQuest, Inc.
  • 111 Springhall Drive
  • Goose Creek
  • South Carolina
  • 29445
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HQINasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDJul 2019

Biography

HireQuest, Inc. provides on-demand and temporary staffing solutions in the United States. The company provides temporary staffing services, including skilled and semi-skilled labour and industrial personne...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:15
End of Day Share Price2021/02/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.