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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Robert Half International Inc. (NYSE:RHI) due to its excellent fundamentals in more than one area. RHI is a financially-healthy , dividend-paying company with a a strong history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Robert Half International here.
Solid track record with excellent balance sheet and pays a dividend
In the previous year, RHI has ramped up its bottom line by 45%, with its latest earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 42% return to shareholders, which is what investors like to see! RHI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that RHI has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. RHI appears to have made good use of debt, producing operating cash levels of 2.1x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Income investors would also be happy to know that RHI is a great dividend company, with a current yield standing at 2.1%. RHI has also been regularly increasing its dividend payments to shareholders over the past decade.
For Robert Half International, there are three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for RHI’s future growth? Take a look at our free research report of analyst consensus for RHI’s outlook.
- Valuation: What is RHI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RHI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RHI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.