Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$14.18, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 13x in the Professional Services industry in the US. Total loss to shareholders of 45% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$8.83 per share. Upcoming Dividend • May 27
Upcoming dividend of US$0.06 per share Eligible shareholders must have bought the stock before 01 June 2026. Payment date: 15 June 2026. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of American dividend payers (4.2%). Lower than average of industry peers (2.6%). Reported Earnings • May 13
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: US$0.11 (up from US$0.10 in 1Q 2025). Revenue: US$6.52m (down 13% from 1Q 2025). Net income: US$1.57m (up 9.3% from 1Q 2025). Profit margin: 24% (up from 19% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) exceeded analyst estimates by 4.8%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Announcement • May 13
HireQuest, Inc. (NasdaqCM:HQI) proposed to acquire TrueBlue, Inc. (NYSE:TBI). HireQuest, Inc. (NasdaqCM:HQI) proposed to acquire TrueBlue, Inc. (NYSE:TBI) on May 12, 2026. TrueBlue’s Board of Directors is carefully reviewing and evaluating the latest unsolicited proposal to determine the course of action that it believes is in the best interests of its shareholders.
Barclays Capital Inc. acted as financial advisor for TrueBlue, Inc. Sidley Austin LLP acted as legal advisor for TrueBlue, Inc. Announcement • May 11
HireQuest, Inc. Declares A Quarterly Dividend , Payable June 15, 2026 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable June 15, 2026, to shareholders of record at the close of business on June 1, 2026. Announcement • May 04
HireQuest, Inc., Annual General Meeting, Jun 18, 2026 HireQuest, Inc., Annual General Meeting, Jun 18, 2026. Reported Earnings • Mar 31
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: US$0.47 (up from US$0.28 in FY 2024). Revenue: US$30.6m (down 11% from FY 2024). Net income: US$6.61m (up 68% from FY 2024). Profit margin: 22% (up from 11% in FY 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 2.2%. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Declared Dividend • Feb 20
Third quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 2nd March 2026 Payment date: 16th March 2026 Dividend yield will be 2.1%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (46% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has increased by an average of 3.7% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 34% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 18
Hirequest, Inc. Announces Quarterly Dividend, Payable on March 16, 2026 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable March 16, 2026, to shareholders of record at the close of business on March 2, 2026. Recent Insider Transactions • Jan 04
Chairman recently bought US$100k worth of stock On the 30th of December, Richard Hermanns bought around 10k shares on-market at roughly US$10.28 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$176k. Richard has been a buyer over the last 12 months, purchasing a net total of US$276k worth in shares. Recent Insider Transactions • Dec 31
Chairman recently bought US$176k worth of stock On the 24th of December, Richard Hermanns bought around 19k shares on-market at roughly US$9.15 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Richard's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to US$9.32, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 18x in the Professional Services industry in the US. Total loss to shareholders of 42% over the past three years. Announcement • Dec 18
HireQuest, Inc. (NasdaqCM:HQI) announces an Equity Buyback for $20 million worth of its shares. HireQuest, Inc. (NasdaqCM:HQI) announces a share repurchase program. Under the program, the company will repurchase up to $20 million worth of its shares. Shares repurchased may be reissued later in connection with employee benefit plans and other general corporate purposes. The program is valid for 12 months from its commencement date. Announcement • Dec 02
HireQuest, Inc. Appoints Shana Applebaum as Managing Director of MRINetwork HireQuest announced a transition of majority ownership of MRINetwork to a new leadership group composed of current and former MRINetwork franchise owners. The new leadership group comprises Todd Govig (Govig & Associates), Mark Angott (Angott Search Group), Mike Brown (Harrison Group), Mark and Jay Schwartz (The Richmond Group USA), and Shana Applebaum (current Managing Partner and Chief Revenue Officer, Northbound Executive Search, who has been appointed Managing Director of MRINetwork). In her new role, Shana Applebaum, based in New York City, will lead a strategic reset of the MRINetwork with a sharp focus on growth, strengthening client partnerships and uniting the global network of offices into a cohesive, high-performing organization. The franchise-owner leadership brings hands-on recruiting and franchise experience, enhancing network strategy, operational best practices, and client-service excellence. The new leadership group will collaborate with HireQuest to unveil an enhanced service model and strategic initiatives starting in First Quarter 2026. Declared Dividend • Nov 14
Third quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 1st December 2025 Payment date: 15th December 2025 Dividend yield will be 2.5%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (46% earnings payout ratio) and cash flows (24% cash payout ratio). The dividend has increased by an average of 3.7% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 31% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 07
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: EPS: US$0.17 (up from US$0.16 loss in 3Q 2024). Revenue: US$8.50m (down 9.8% from 3Q 2024). Net income: US$2.41m (up US$4.58m from 3Q 2024). Profit margin: 28% (up from net loss in 3Q 2024). The move to profitability was driven by lower expenses. Revenue exceeded analyst estimates by 4.9%. Earnings per share (EPS) missed analyst estimates by 5.9%. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Declared Dividend • Aug 15
Second quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 29th August 2025 Payment date: 15th September 2025 Dividend yield will be 2.5%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is not covered by earnings (125% earnings payout ratio). However, it is well covered by cash flows (20% cash payout ratio). The dividend has increased by an average of 3.7% per year over the past 5 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 39% to bring the payout ratio under control. EPS is expected to grow by 67% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Aug 10
Second quarter 2025 earnings: EPS misses analyst expectations Second quarter 2025 results: EPS: US$0.077 (down from US$0.15 in 2Q 2024). Revenue: US$7.64m (down 12% from 2Q 2024). Net income: US$1.07m (down 48% from 2Q 2024). Profit margin: 14% (down from 24% in 2Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 38%. Revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Declared Dividend • May 21
First quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 2nd June 2025 Payment date: 16th June 2025 Dividend yield will be 2.5%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is not adequately covered by earnings (91% earnings payout ratio). However, it is well covered by cash flows (23% cash payout ratio). The dividend has increased by an average of 3.7% per year over the past 5 years and payments have been stable during that time. Earnings per share is expected to grow by 56% over the next 3 years, which should maintain adequate earnings cover for the dividend. Major Estimate Revision • May 15
Consensus revenue estimates decrease by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from US$34.9m to US$31.0m. EPS estimate unchanged at US$0.64 per share. Net income forecast to grow 89% next year vs 13% growth forecast for Professional Services industry in the US. Consensus price target down from US$16.00 to US$14.00. Share price fell 2.1% to US$10.00 over the past week. Announcement • May 14
HireQuest, Inc. (NasdaqCM:HQI) entered into a letter of intent to acquire TrueBlue, Inc. (NYSE:TBI) for approximately $220 million. HireQuest, Inc. (NasdaqCM:HQI) entered into a letter of intent to acquire TrueBlue, Inc. (NYSE:TBI) for approximately $220 million on May 9, 2025. The consideration consists of common equity of HireQuest, Inc. to be issued for common equity of TrueBlue, Inc. at $7.5 per share.
The transaction is subject to approval of merger agreement by target board. The deal has been rejected by the board of directors due to inadequate offer price.
Sidley Austin LLP acted as legal advisor for TrueBlue, Inc. Innisfree M&A Incorporated acted as information agent for HireQuest, Inc. Reported Earnings • May 09
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: US$0.10 (down from US$0.12 in 1Q 2024). Revenue: US$7.47m (down 11% from 1Q 2024). Net income: US$1.44m (down 15% from 1Q 2024). Profit margin: 19% (in line with 1Q 2024). Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) also missed analyst estimates by 23%. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • May 09
HireQuest, Inc. (NasdaqCM:HQI) acquired of Certain assets of Ready Temporary Staffing, LLC for $1.4 million. HireQuest, Inc. (NasdaqCM:HQI) entered into an asset purchase agreement to acquire Certain assets of Ready Temporary Staffing, LLC for $1.4 million on December 13, 2024.
HireQuest, Inc. (NasdaqCM:HQI) completed the acquisition of Certain assets of Ready Temporary Staffing, LLC for $1.4 million on December 30, 2024. Announcement • May 01
HireQuest, Inc., Annual General Meeting, Jun 18, 2025 HireQuest, Inc., Annual General Meeting, Jun 18, 2025. Announcement • Apr 09
HireQuest, Inc. Announces CFO Changes, Effective May 31, 2025 On April 4, 2025, HireQuest, Inc. appointed, effective May 31, 2025, C. David Hartley to serve as Chief Financial Officer. Mr. Hartley, age 43, has been with the Company since 2020, most recently as Vice President of Operational Finance and Corporate Development. From 2017 until 2019, Mr. Hartley was a Vice President in the investment banking division at D.A. Davidson. Before that, from 2015 to 2017, Mr. Hartley served as a Vice President in the investment banking division at Wunderlich Securities. Before that, from 2011 to 2015, Mr. Hartley served as an Associate in the investment banking division at RBC Capital Markets. Mr. Hartley holds a B.A. from Johns Hopkins University and an MBA from NYU Stern School of Business. On April 2, 2025, Steve Crane, the Company's Chief Financial Officer, informed the Company of his intention to retire from his role effective May 31, 2025. Mr. Crane's retirement is not the result of any dispute or disagreement with the Company, including with respect to any matters relating to the Company's accounting practices or financial reporting. Buy Or Sell Opportunity • Apr 07
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to US$10.81. The fair value is estimated to be US$13.67, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has declined by 35%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 18% per annum over the same time period. Major Estimate Revision • Apr 03
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$38.8m to US$34.9m. EPS estimate fell from US$0.78 to US$0.72 per share. Net income forecast to grow 146% next year vs 16% growth forecast for Professional Services industry in the US. Consensus price target down from US$19.00 to US$16.00. Share price fell 12% to US$11.84 over the past week. Price Target Changed • Mar 30
Price target decreased by 11% to US$17.00 Down from US$19.00, the current price target is an average from 2 analysts. New target price is 39% above last closing price of US$12.22. Stock is down 5.6% over the past year. The company is forecast to post earnings per share of US$0.72 for next year compared to US$0.28 last year. Reported Earnings • Mar 28
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: US$0.28 (down from US$0.47 in FY 2023). Revenue: US$34.6m (down 8.7% from FY 2023). Net income: US$3.93m (down 39% from FY 2023). Profit margin: 11% (down from 17% in FY 2023). Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Mar 11
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to US$12.90. The fair value is estimated to be US$16.13, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has declined by 28%. For the next 3 years, revenue is forecast to grow by 5.3% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Declared Dividend • Feb 20
Third quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 3rd March 2025 Payment date: 17th March 2025 Dividend yield will be 1.7%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (160% earnings payout ratio). However, it is well covered by cash flows (29% cash payout ratio). The dividend has increased by an average of 4.7% per year over the past 4 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 78% to bring the payout ratio under control. EPS is expected to grow by 78% over the next 3 years, which should be enough to bring the dividend into a sustainable range. Buy Or Sell Opportunity • Jan 23
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.0% to US$13.35. The fair value is estimated to be US$16.84, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has declined by 28%. For the next 3 years, revenue is forecast to grow by 5.3% per annum. Earnings are also forecast to grow by 21% per annum over the same time period. Buy Or Sell Opportunity • Dec 30
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.1% to US$13.15. The fair value is estimated to be US$16.93, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has declined by 28%. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings are also forecast to grow by 26% per annum over the same time period. Price Target Changed • Nov 15
Price target increased by 8.6% to US$19.00 Up from US$17.50, the current price target is an average from 2 analysts. New target price is 33% above last closing price of US$14.30. Stock is down 2.6% over the past year. The company posted earnings per share of US$0.47 last year. Announcement • Nov 13
HireQuest, Inc. Declares Quarterly Dividend, Payable on December 16, 2024 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable December 16, 2024, to shareholders of record at the close of business on December 2, 2024. Announcement • Nov 10
HireQuest, Inc. Reports Unaudited Goodwill and Intangible Asset Impairment Charge for the Third Quarter Ended September 30, 2024 HireQuest, Inc. reported unaudited goodwill and intangible asset impairment charge for the third quarter ended September 30, 2024. For the quarter, the company reported goodwill and intangible asset impairment charge of $6,035,000. Reported Earnings • Nov 08
Third quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2024 results: US$0.16 loss per share (down from US$0.12 profit in 3Q 2023). Revenue: US$9.42m (up 1.6% from 3Q 2023). Net loss: US$2.17m (down 236% from profit in 3Q 2023). Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Recent Insider Transactions • Aug 27
Independent Director recently bought US$65k worth of stock On the 22nd of August, Jack Olmstead bought around 5k shares on-market at roughly US$12.90 per share. This transaction amounted to 8.1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$658k more in shares than they have sold in the last 12 months. Declared Dividend • Aug 18
Second quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 30th August 2024 Payment date: 16th September 2024 Dividend yield will be 1.8%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by both earnings (57% earnings payout ratio) and cash flows (35% cash payout ratio). The dividend has increased by an average of 4.7% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 53% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Aug 15
Hirequest, Inc. Declares Quarterly Dividend, Payable on September 16, 2024 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable September 16, 2024, to shareholders of record at the close of business on September 2, 2024. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$13.41, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 21x in the Professional Services industry in the US. Total loss to shareholders of 25% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$9.18 per share. Reported Earnings • Aug 09
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: US$0.15 (in line with 2Q 2023). Revenue: US$8.68m (down 3.4% from 2Q 2023). Net income: US$2.08m (up 1.1% from 2Q 2023). Profit margin: 24% (up from 23% in 2Q 2023). Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 20%. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 13% per year. Valuation Update With 7 Day Price Move • Jul 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$14.10, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 21x in the Professional Services industry in the US. Total loss to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$10.52 per share. Buy Or Sell Opportunity • Jul 10
Now 21% overvalued Over the last 90 days, the stock has fallen 2.0% to US$12.67. The fair value is estimated to be US$10.51, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has declined by 7.7%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Recent Insider Transactions • Jul 02
Chairman recently bought US$51k worth of stock On the 28th of June, Richard Hermanns bought around 4k shares on-market at roughly US$12.08 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$121k. Richard has been a buyer over the last 12 months, purchasing a net total of US$385k worth in shares. Buy Or Sell Opportunity • Jun 04
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 3.7% to US$12.99. The fair value is estimated to be US$10.71, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has declined by 7.7%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Declared Dividend • May 20
First quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 3rd June 2024 Payment date: 17th June 2024 Dividend yield will be 1.8%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is well covered by both earnings (43% earnings payout ratio) and cash flows (38% cash payout ratio). The dividend has increased by an average of 4.7% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 53% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • May 17
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 2.5% to US$13.25. The fair value is estimated to be US$10.62, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 29% over the last 3 years. Earnings per share has declined by 7.7%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Recent Insider Transactions • May 16
Chairman recently bought US$121k worth of stock On the 14th of May, Richard Hermanns bought around 10k shares on-market at roughly US$12.07 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Richard has been a buyer over the last 12 months, purchasing a net total of US$193k worth in shares. Announcement • May 16
HireQuest, Inc. Declares Quarterly Dividend, Payable on June 17, 2024 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable June 17, 2024, to shareholders of record at the close of business on June 3, 2024. Reported Earnings • May 11
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: US$0.12 (down from US$0.17 in 1Q 2023). Revenue: US$8.42m (down 15% from 1Q 2023). Net income: US$1.69m (down 27% from 1Q 2023). Profit margin: 20% (down from 24% in 1Q 2023). Revenue missed analyst estimates by 5.3%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Price Target Changed • May 11
Price target decreased by 14% to US$19.00 Down from US$22.00, the current price target is an average from 2 analysts. New target price is 60% above last closing price of US$11.90. Stock is down 46% over the past year. The company is forecast to post earnings per share of US$0.60 for next year compared to US$0.47 last year. Announcement • May 01
HireQuest, Inc., Annual General Meeting, Jun 14, 2024 HireQuest, Inc., Annual General Meeting, Jun 14, 2024, at 14:00 US Eastern Standard Time. Agenda: To approve the election of six directors to serve until the next meeting of stockholders and until their respective successors are duly elected and qualify; To ratify the selection of FORVIS, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2024; To approve, on a non-binding advisory basis, the compensation paid to the Company’s named executive officers as disclosed in the attached proxy statement; and to transact such other business as may properly come before the meeting or any adjournment or postponement thereof. Major Estimate Revision • Apr 05
Consensus EPS estimates fall by 34% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$38.2m to US$37.5m. EPS estimate also fell from US$0.89 per share to US$0.59 per share. Net income forecast to grow 27% next year vs 18% growth forecast for Professional Services industry in the US. Consensus price target down from US$22.00 to US$21.00. Share price was steady at US$13.15 over the past week. Price Target Changed • Apr 04
Price target decreased by 8.7% to US$21.00 Down from US$23.00, the current price target is an average from 2 analysts. New target price is 59% above last closing price of US$13.20. Stock is down 37% over the past year. The company is forecast to post earnings per share of US$0.59 for next year compared to US$0.47 last year. Reported Earnings • Mar 22
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: US$0.47 (down from US$0.88 in FY 2022). Revenue: US$37.9m (up 22% from FY 2022). Net income: US$6.44m (down 46% from FY 2022). Profit margin: 17% (down from 39% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 36%. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Declared Dividend • Feb 22
Third quarter dividend of US$0.06 announced Dividend of US$0.06 is the same as last year. Ex-date: 29th February 2024 Payment date: 15th March 2024 Dividend yield will be 1.8%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by both earnings (39% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 6.3% per year over the past 3 years and payments have been stable during that time. EPS is expected to grow by 58% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 17
HireQuest, Inc. Declares Quarterly Dividend, Payable on March 15, 2024 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable March 15, 2024, to shareholders of record at the close of business on March 1, 2024. Recent Insider Transactions • Dec 21
Independent Director recently bought US$64k worth of stock On the 19th of December, Lawrence Hagenbuch bought around 4k shares on-market at roughly US$16.32 per share. This transaction amounted to 4.2% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth US$94k. Insiders have collectively bought US$875k more in shares than they have sold in the last 12 months. Announcement • Dec 05
HireQuest, Inc. (NasdaqCM:HQI) completed the acquisition of Temporary Employment Company. HireQuest, Inc. (NasdaqCM:HQI) entered into a definitive agreement to acquire Temporary Employment Company for approximately $9.8 million on October 23, 2023. HireQuest intend to finance this acquisition with Senior Credit Facility. TEC Staffing Services generated over $34 million in total revenue for the trailing 12-month period ended September 30, 2023. The offices will be converted to the Snelling franchise model. The transaction is expected to close in the fourth quarter subject to closing conditions. During the interim, all of TEC's offices will remain open for business without interruption.
HireQuest, Inc. (NasdaqCM:HQI) completed the acquisition of Temporary Employment Company on December 4, 2023. Upcoming Dividend • Nov 24
Upcoming dividend of US$0.06 per share at 1.7% yield Eligible shareholders must have bought the stock before 30 November 2023. Payment date: 15 December 2023. Payout ratio is a comfortable 39% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of American dividend payers (5.0%). In line with average of industry peers (1.7%). Recent Insider Transactions • Nov 17
Independent Director recently bought US$94k worth of stock On the 14th of November, Jack Olmstead bought around 7k shares on-market at roughly US$13.38 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$776k more in shares than they have sold in the last 12 months. Announcement • Nov 17
HireQuest, Inc. Declares Quarterly Dividend, Payable on December 15, 2023 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable December 15, 2023, to shareholders of record at the close of business on December 1, 2023. Announcement • Nov 15
HireQuest, Inc. Announces CFO Changes HireQuest, Inc. announced the appointment of Steven Crane as Chief Financial Officer. In his new role, Mr. Crane will oversee all aspects of HireQuest's finance and accounting organization and play a key role in developing and implementing the Company's strategic initiatives. Mr. Crane will succeed the current CFO, David Burnett. Mr. Crane is a finance professional with more than 20 years of financial management and leadership experience. Most recently, he founded and served as Managing Partner of TouchPoint Search, LLC, a consulting and recruiting business focused on filling finance and accounting related positions, as well as providing interim finance and accounting services. Mr. Crane also has previous public company experience as Chief Financial Officer of Interactive Data Corporation, and ModusLink Global Solutions. During his time as Chief Financial Officer of Interactive Data Corporation, the company's market cap grew from $250 million to $2.5 billion, and he oversaw the successful acquisition of seven strategic targets totaling over $300 million in purchase price. As Chief Financial Officer of ModusLink Global Solutions, Mr. Crane oversaw three strategic acquisitions totaling $90 million in purchase price and streamlined reporting and accounting functions that lowered costs by $3 million. Mr. Crane also served on the board of Pulse Electronics Corporation, where he was chairman of the audit and compensation committees. He received his B.S. in Mechanical Engineering from Tulane University and a Master's in International Management from the Thunderbird School of International Management. New Risk • Nov 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (25% net profit margin). Reported Earnings • Nov 10
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: US$0.12 (down from US$0.30 in 3Q 2022). Revenue: US$9.27m (down 1.0% from 3Q 2022). Net income: US$1.60m (down 62% from 3Q 2022). Profit margin: 17% (down from 44% in 3Q 2022). Revenue exceeded analyst estimates by 6.7%. Earnings per share (EPS) missed analyst estimates by 33%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 15% per year. Upcoming Dividend • Aug 24
Upcoming dividend of US$0.06 per share at 1.3% yield Eligible shareholders must have bought the stock before 31 August 2023. Payment date: 15 September 2023. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of American dividend payers (4.9%). Lower than average of industry peers (1.6%). Recent Insider Transactions • Aug 18
Independent Director recently bought US$201k worth of stock On the 15th of August, Jack Olmstead bought around 10k shares on-market at roughly US$20.11 per share. This transaction amounted to 31% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$356k more in shares than they have sold in the last 12 months. Announcement • Aug 17
Hirequest, Inc. Declares Quarterly Dividend, Payable on September 15, 2023 HireQuest, Inc. announced that its Board of Directors has declared a quarterly dividend of $0.06 per share. The dividend is payable September 15, 2023, to shareholders of record at the close of business on September 1, 2023. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment deteriorates as stock falls 28% After last week's 28% share price decline to US$17.57, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 22x in the Professional Services industry in the US. Total returns to shareholders of 183% over the past three years. New Risk • Aug 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 35% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 11
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: US$0.15 (down from US$0.35 in 2Q 2022). Revenue: US$8.99m (down 3.2% from 2Q 2022). Net income: US$2.05m (down 57% from 2Q 2022). Profit margin: 23% (down from 51% in 2Q 2022). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 46%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 6.0% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 42% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Jul 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. Independent Director Jack Olmstead was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$27.42, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 22x in the Professional Services industry in the US. Total returns to shareholders of 338% over the past three years. 