NasdaqGS:HSII

Stock Analysis Report

Heidrick & Struggles International

Executive Summary

Heidrick & Struggles International, Inc., together with its subsidiaries, provides executive search and consulting services to businesses and business leaders in the Americas, Europe, the Asia Pacific, and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Heidrick & Struggles International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HSII's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.3%

HSII

-3.0%

US Professional Services

-4.2%

US Market


1 Year Return

-23.7%

HSII

25.8%

US Professional Services

14.0%

US Market

Return vs Industry: HSII underperformed the US Professional Services industry which returned 25.8% over the past year.

Return vs Market: HSII underperformed the US Market which returned 14% over the past year.


Shareholder returns

HSIIIndustryMarket
7 Day-9.3%-3.0%-4.2%
30 Day-15.2%0.2%-1.8%
90 Day-18.0%7.2%2.6%
1 Year-22.3%-23.7%27.0%25.8%16.3%14.0%
3 Year26.8%20.4%57.5%52.5%43.2%34.0%
5 Year15.2%4.2%76.0%66.6%65.9%47.6%

Price Volatility Vs. Market

How volatile is Heidrick & Struggles International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Heidrick & Struggles International undervalued compared to its fair value and its price relative to the market?

38.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSII ($25.83) is trading below our estimate of fair value ($42)

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


Price To Earnings Ratio

PE vs Industry: HSII is good value based on its PE Ratio (10.4x) compared to the Professional Services industry average (18.8x).

PE vs Market: HSII is good value based on its PE Ratio (10.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: HSII is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: HSII is good value based on its PB Ratio (1.7x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is Heidrick & Struggles International forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSII's forecast earnings growth (5.4% per year) is above the savings rate (1.7%).

Earnings vs Market: HSII's earnings (5.4% per year) are forecast to grow slower than the US market (13.1% per year).

High Growth Earnings: HSII's earnings are forecast to grow, but not significantly.

Revenue vs Market: HSII's revenue (2.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HSII's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSII's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has Heidrick & Struggles International performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSII has high quality earnings.

Growing Profit Margin: HSII became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HSII's earnings have grown by 15.8% per year over the past 5 years.

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

Earnings vs Industry: HSII has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (12.3%).


Return on Equity

High ROE: HSII's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Heidrick & Struggles International's financial position?


Financial Position Analysis

Short Term Liabilities: HSII's short term assets ($424.0M) exceed its short term liabilities ($296.2M).

Long Term Liabilities: HSII's short term assets ($424.0M) exceed its long term liabilities ($183.7M).


Debt to Equity History and Analysis

Debt Level: HSII is debt free.

Reducing Debt: HSII has no debt compared to 5 years ago when its debt to equity ratio was 12.5%.

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

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


Balance Sheet

Inventory Level: HSII has a low level of unsold assets or inventory.

Debt Coverage by Assets: HSII's debt is covered by short term assets (assets are 2.9838458593655E+16x debt).


Next Steps

Dividend

What is Heidrick & Struggles International's current dividend yield, its reliability and sustainability?

2.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HSII's dividend (2.32%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: HSII's dividend (2.32%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: HSII's dividends per share have been stable in the past 10 years.

Growing Dividend: HSII's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), HSII's dividend payments are well 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?

1.9yrs

Average management tenure


CEO

Krishnan Rajagopalan (59yo)

2.8yrs

Tenure

US$4,037,513

Compensation

Mr. Krishnan Rajagopalan has been the President, Chief Executive Officer and Director of Heidrick & Struggles International, Inc. since July 6, 2017. Mr. Rajagopalan served as Acting Chief Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Krishnan's total compensation ($USD4.04M) is above average for companies of similar size in the US market ($USD1.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Krishnan Rajagopalan
President2.8yrsUS$4.04m0.38% $1.9m
Mark Harris
CFO & Executive VP1.9yrsUS$1.84mno data
Kamau Coar
General Counsel & Secretary2yrsUS$628.49k0.016% $77.4k
Richard Greene
Managing Partner of Heidrick Consulting1.1yrsUS$1.09m0.071% $350.1k
Christine Stimpel
Managing Partner0yrsno datano data
Michael Cullen
Chief Operating Officer1.1yrsno data0.025% $123.6k
Stephen Bondi
Interim Principal Accounting Officer3.6yrsno data0.062% $309.0k
Suzanne Rosenberg
Vice President of Investor Relations0yrsno datano data
Jon Harmon
Vice President of Corporate Communications0yrsno datano data
Corinna Christophorou
Senior VP & Chief Marketing Officer1.8yrsno datano data

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: HSII's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Krishnan Rajagopalan
President2.8yrsUS$4.04m0.38% $1.9m
Elizabeth Axelrod
Independent Director4yrsUS$185.01k0.092% $457.7k
T. Mesdag
Independent Director4yrsUS$215.01k0.052% $258.3k
Lyle Logan
Lead Independent Director1.8yrsUS$209.19k0.092% $457.7k
Clare Chapman
Independent Director4yrsUS$205.01kno data
Adam Warby
Independent Chairman of the Board0.7yrsUS$177.67kno data
Gary Knell
Independent Director12.4yrsUS$185.01k0.026% $130.3k
Stacey Rauch
Independent Director1yrsno data0.019% $93.6k

3.3yrs

Average Tenure

59yo

Average Age

Experienced Board: HSII's board of directors are considered experienced (3.3 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Heidrick & Struggles International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Heidrick & Struggles International, Inc.
  • Ticker: HSII
  • Exchange: NasdaqGS
  • Founded: 1953
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$495.170m
  • Shares outstanding: 19.17m
  • Website: https://www.heidrick.com

Number of Employees


Location

  • Heidrick & Struggles International, Inc.
  • 233 South Wacker Drive Willis Tower
  • Suite 4900
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSIINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1999
HSIDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1999

Biography

Heidrick & Struggles International, Inc., together with its subsidiaries, provides executive search and consulting services to businesses and business leaders in the Americas, Europe, the Asia Pacific, and internationally. The company enables its clients to build leadership teams by facilitating the recruitment, management, and development of senior executives. Its consulting services include leadership assessment and development, executive coaching and on-boarding, succession planning, team and board effectiveness, organizational performance acceleration, workforce planning, and culture shaping services. The company serves Fortune 1000 companies; middle market and emerging growth companies; governmental, higher education, and not-for-profit organizations; and other private and public entities. Heidrick & Struggles International, Inc. was founded in 1953 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:40
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.