NYSE:RHI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Robert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Robert Half International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RHI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

RHI

-2.7%

US Professional Services

-2.4%

US Market


1 Year Return

-0.9%

RHI

15.4%

US Professional Services

18.2%

US Market

Return vs Industry: RHI underperformed the US Professional Services industry which returned 16.4% over the past year.

Return vs Market: RHI underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

RHIIndustryMarket
7 Day-4.3%-2.7%-2.4%
30 Day3.3%2.8%4.2%
90 Day3.5%5.2%6.3%
1 Year1.5%-0.9%16.2%15.4%20.9%18.2%
3 Year16.0%9.0%52.1%47.4%41.2%31.8%
5 Year20.8%8.9%90.3%80.2%84.8%63.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Robert Half International undervalued compared to its fair value and its price relative to the market?

17.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RHI ($55.43) is trading above our estimate of fair value ($38.82)

Significantly Below Fair Value: RHI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RHI is good value based on its PE Ratio (17.2x) compared to the US Professional Services industry average (23.2x).

PE vs Market: RHI is good value based on its PE Ratio (17.2x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: RHI is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: RHI is overvalued based on its PB Ratio (5.4x) compared to the US Professional Services industry average (2.6x).


Next Steps

Future Growth

How is Robert Half International forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHI's forecast earnings growth (13.6% per year) is above the savings rate (2.2%).

Earnings vs Market: RHI's earnings (13.6% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: RHI's revenue (5.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: RHI's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RHI's Return on Equity is forecast to be high in 3 years time (33.5%)


Next Steps

Past Performance

How has Robert Half International performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RHI has high quality earnings.

Growing Profit Margin: RHI's current net profit margins (6.4%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: RHI's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: RHI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RHI had negative earnings growth (-19.2%) over the past year, making it difficult to compare to the Professional Services industry average (-1.7%).


Return on Equity

High ROE: RHI's Return on Equity (31.7%) is considered high.


Next Steps

Financial Health

How is Robert Half International's financial position?


Financial Position Analysis

Short Term Liabilities: RHI's short term assets ($1.7B) exceed its short term liabilities ($977.2M).

Long Term Liabilities: RHI's short term assets ($1.7B) exceed its long term liabilities ($268.5M).


Debt to Equity History and Analysis

Debt Level: RHI's debt to equity ratio (0.03%) is considered satisfactory.

Reducing Debt: RHI's debt to equity ratio has reduced from 0.1% to 0.03% over the past 5 years.

Debt Coverage: RHI's debt is well covered by operating cash flow (199355.4%).

Interest Coverage: RHI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Robert Half International current dividend yield, its reliability and sustainability?

2.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RHI's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RHI's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.4%), RHI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RHI's dividends in 3 years are forecast to be well covered by earnings (42.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Commercial Services industry.

Management

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

0.9yrs

Average management tenure


CEO

M. Waddell (63 yo)

0.83

Tenure

US$7,433,592

Compensation

Mr. M. Keith Waddell serves as Vice Chairman at Robert Half International Inc. since August 2020. Mr. Waddell serves as Chief Executive Officer of Robert Half International Inc., since December 15, 2019 an ...


CEO Compensation Analysis

Compensation vs Market: M.'s total compensation ($USD7.43M) is about average for companies of similar size in the US market ($USD7.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Harold Messmer
Executive Chairman32.75yrsUS$9.34m0.84%
$ 52.7m
M. Waddell
Vice Chairman0.83yrUS$7.43m1.12%
$ 70.1m
Michael Buckley
Executive VP & CFO0.83yrUS$2.60m0.15%
$ 9.2m
Robert Glass
Executive Vice President of Corporate Development16.67yrsUS$2.02m0.24%
$ 15.2m
Paul Gentzkow
President & CEO of Staffing Services16.67yrsUS$6.47m0.34%
$ 21.5m
James Johnson
Senior VP & CTO0.92yrno datano data
Steven Kass
Senior VP & Chief Administrative Officer0.17yrno datano data
Evelyn Crane-Oliver
Senior VPno datano datano data
Michelle Whitman
Senior VP & Chief Marketing Officerno datano datano data
Lynne Smith
Senior Vice President of Human Resources & Compensation3.58yrsno datano data
Christopher Hoffmann
Senior VP & Global Privacy Officer of Business Operations and Lawno datano datano data
Tami Munns
Senior Vice President of Corporate Services - Staffingno datano datano data

0.9yrs

Average Tenure

63yo

Average Age

Experienced Management: RHI's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Harold Messmer
Executive Chairman32.75yrsUS$9.34m0.84%
$ 52.7m
M. Waddell
Vice Chairman0.83yrUS$7.43m1.12%
$ 70.1m
Frederick Richman
Lead Independent Directorno dataUS$366.08k0.045%
$ 2.8m
Marc Morial
Independent Director4.58yrsUS$333.08k0.022%
$ 1.4m
Dirk Kempthorne
Independent Director1.75yrsUS$319.33k0.0094%
$ 590.5k
Robert Pace
Independent Director11.67yrsUS$333.08k0.086%
$ 5.4m
Barbara Novogradac
Independent Director11.42yrsUS$348.08k0.12%
$ 7.7m
Julia Suzanne Coronado
Independent Director1.58yrsUS$307.08k0.0094%
$ 590.5k

4.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: RHI's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RHI insiders have only sold shares 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

Robert Half International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Robert Half International Inc.
  • Ticker: RHI
  • Exchange: NYSE
  • Founded: 1948
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$6.255b
  • Shares outstanding: 112.84m
  • Website: https://www.roberthalf.com

Number of Employees


Location

  • Robert Half International Inc.
  • 2884 Sand Hill Road
  • Menlo Park
  • California
  • 94025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RHINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
RHJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0KX9LSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
R1HI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Robert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company operates through three segments: Temporary and Consul ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:30
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.