- United States
- Professional Services
At US$75.34, Is Robert Half International Inc. (NYSE:RHI) Worth Looking At Closely?
Robert Half International Inc. (NYSE:RHI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$88.71 at one point, and dropping to the lows of US$71.73. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Robert Half International's current trading price of US$75.34 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Robert Half International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
See our latest analysis for Robert Half International
What Is Robert Half International Worth?
Great news for investors – Robert Half International is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 12.13x is currently well-below the industry average of 18.45x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Robert Half International’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Robert Half International look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 0.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Robert Half International, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since RHI is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping an eye on RHI for a while, now might be the time to enter the stock. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RHI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
If you want to dive deeper into Robert Half International, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Robert Half International.
If you are no longer interested in Robert Half International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Robert Half International
Robert Half International Inc. provides talent solutions and business consulting service in North America, South America, Europe, Asia, and Australia.
Flawless balance sheet, undervalued and pays a dividend.