NYSE:RHI

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (15.3x) is below the US market (18.5x)

Earnings grew by 23.8% over the past year

Pays a high and reliable dividend of 2.09%

Risk Analysis

Earnings are forecast to decline by an average of -3.7% per year for the next 3 years



Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.


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

2.2%

RHI

0.5%

US Professional Services

0.3%

US Market


1 Year Return

2.1%

RHI

26.9%

US Professional Services

18.5%

US Market

Return vs Industry: RHI underperformed the US Professional Services industry which returned 26.9% over the past year.

Return vs Market: RHI underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

RHIIndustryMarket
7 Day2.2%0.5%0.3%
30 Day2.6%4.5%1.5%
90 Day7.7%1.7%5.7%
1 Year4.3%2.1%28.0%26.9%21.1%18.5%
3 Year30.1%22.7%55.0%50.1%45.9%36.4%
5 Year15.2%4.8%85.7%75.6%71.4%52.5%

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?

15.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RHI ($59.47) is trading above our estimate of fair value ($38.48)

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 (15.3x) compared to the Professional Services industry average (19.8x).

PE vs Market: RHI is good value based on its PE Ratio (15.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: RHI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RHI is overvalued based on its PB Ratio (6.1x) compared to the US Professional Services industry average (2.7x).


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?

-3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RHI's earnings are forecast to decline over the next 3 years (-3.7% per year).

Earnings vs Market: RHI's earnings are forecast to decline over the next 3 years (-3.7% per year).

High Growth Earnings: RHI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RHI's revenue (6.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: RHI's revenue (6.1% 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 (27.4%)


Next Steps

Past Performance

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

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RHI has high quality earnings.

Growing Profit Margin: RHI's current net profit margins (7.6%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: RHI's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: RHI's earnings growth over the past year (23.8%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: RHI earnings growth over the past year (23.8%) exceeded the Professional Services industry 23.5%.


Return on Equity

High ROE: RHI's Return on Equity (40.9%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Robert Half International's financial position?


Financial Position Analysis

Short Term Liabilities: RHI's short term assets ($1.6B) exceed its short term liabilities ($977.4M).

Long Term Liabilities: RHI's short term assets ($1.6B) exceed its long term liabilities ($222.3M).


Debt to Equity History and Analysis

Debt Level: RHI's debt to equity ratio (0.05%) is considered satisfactory.

Reducing Debt: RHI's debt to equity ratio has reduced from 0.1% to 0.05% over the past 5 years.

Debt Coverage: RHI's debt is well covered by operating cash flow (110422.6%).

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


Balance Sheet

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

Debt Coverage by Assets: RHI's debt is covered by short term assets (assets are 3204.7x debt).


Next Steps

Dividend

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

2.09%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: RHI's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: RHI's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (31.1%), 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 (33.5% payout ratio).


Next Steps

Management

What is the CEO of Robert Half International's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average management tenure


CEO

Max Messmer (73yo)

32.9yrs

Tenure

US$9,132,451

Compensation

Mr. Harold Max Messmer, Jr., also known as Max, serves as the Chairman and Chief Executive Officer at Robert Half Ltd., Robert Half Australia Pty Limited, OfficeTeam, Inc. and Robert Half Technology, Inc.  ...


CEO Compensation Analysis

Compensation vs Market: Max's total compensation ($USD9.13M) is above average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

15.8yrs

Average Tenure

62yo

Average Age

Experienced Management: RHI's management team is seasoned and experienced (15.8 years average tenure).


Board Age and Tenure

10.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: RHI's board of directors are seasoned and experienced ( 10.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$4,962,60813 Feb 19
Paul Gentzkow
EntityIndividual
Role
Senior Key Executive
President & COO of Staffing Services
Shares75,000
Max PriceUS$66.17

Ownership Breakdown

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


Management Team

  • Max Messmer (73yo)

    Chairman of the Board & CEO

    • Tenure: 32.9yrs
    • Compensation: US$9.13m
  • M. Waddell (62yo)

    Vice Chairman of the Board

    • Tenure: 20.9yrs
    • Compensation: US$7.28m
  • Robert Glass (60yo)

    Executive Vice President of Corporate Development

    • Tenure: 15.8yrs
    • Compensation: US$2.00m
  • Paul Gentzkow (63yo)

    President & COO of Staffing Services

    • Tenure: 19.9yrs
    • Compensation: US$6.36m
  • Michael Buckley (53yo)

    Executive VP

    • Tenure: 12.8yrs
    • Compensation: US$2.60m
  • Reesa Staten

    Senior Vice President of Corporate Communications

    • Tenure: 0yrs
  • Evelyn Crane-Oliver

    Senior VP

    • Tenure: 0yrs
  • Michelle Whitman

    Senior VP & Chief Marketing Officer

    • Tenure: 0yrs
  • Lynne Smith

    Senior Vice President of Human Resources & Compensation

    • Tenure: 2.8yrs
  • James Johnson

    Senior VP & CTO

    • Tenure: 0.08yrs

Board Members

  • Max Messmer (73yo)

    Chairman of the Board & CEO

    • Tenure: 32.9yrs
    • Compensation: US$9.13m
  • M. Waddell (62yo)

    Vice Chairman of the Board

    • Tenure: 20.9yrs
    • Compensation: US$7.28m
  • Frederick Richman (73yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$366.08k
  • Marc Morial (61yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$333.08k
  • Dirk Kempthorne (67yo)

    Independent Director

    • Tenure: 0.9yrs
  • Robert Pace (56yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$333.08k
  • Barbara Novogradac (58yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$348.08k
  • Julia Suzanne Coronado (51yo)

    Independent Director

    • Tenure: 0.8yrs

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$6.542b
  • Shares outstanding: 114.05m
  • 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

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 Analysis2019/12/08 23:41
End of Day Share Price2019/12/06 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.