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HLI

Houlihan Lokey NYSE:HLI Stock Report

Last Price

US$86.93

Market Cap

US$6.0b

7D

0.9%

1Y

-1.4%

Updated

11 Aug, 2022

Data

Company Financials +
HLI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends3/6

HLI Stock Overview

Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide.

Houlihan Lokey, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Houlihan Lokey
Historical stock prices
Current Share PriceUS$86.93
52 Week HighUS$122.62
52 Week LowUS$74.23
Beta0.68
1 Month Change11.09%
3 Month Change2.68%
1 Year Change-1.38%
3 Year Change107.32%
5 Year Change149.37%
Change since IPO288.08%

Recent News & Updates

Jul 19

Houlihan Lokey Has Resilience In Sponsors And Restructuring

In our last article, we worried about too limited restructuring exposures to offset the M&A decline at HLI's premium price. That price has now come down, and with some resilient businesses to stave off serious cash flow declines, the company looks more attractive. However, it is still priced for some measure of growth which it will struggle to attain for at least 6 months if not two years of a bear market. No reason to risk capital here. Published on the Value Lab 19/7/22 Houlihan Lokey (HLI) is a premier investment bank, really one of the most respected firms in the world. They deal with pretty exotic problems and have a strong history of executing well on complicated assignments. The price was way too high before, with restructuring too limited to offset declines in corporate finance. The price has declined 20% now, and the resilience that it does have in its financial sponsor facing businesses and restructuring counts more to the valuation case. However, it is still priced for too much growth in our opinion where none should be expected for at least a year if not two. We see better opportunities on the market in other industries, and definitely prefer Moelis (MC) over HLI among the boutiques. A Q4 Look The Q4 figures are the most recently reported due to the later closure of the fiscal year. Naturally, the trends for HLI look better than competitors, but mainly because the ebullience of 2021 is better shared between the 2022 fiscal year and 2021 versus companies with more standard fiscal calendars. Financial Highlights (HLI Q4 Pres) However, the trends are a little better for HLI over some other players with acquisitions and headcount investments adding to the company's revenues as their productivity becomes 'consolidated'. MD Headcount (Q4 2022 Pres) Much of this headcount is coming into restructuring, which typically uses employees for other divisions, but HLI actually has their own designated bench for the unit that includes hundreds of financial professionals and over 50 MDs. With restructuring in a record trough across the board of financial advisors, it is good to see them gearing up for the heightening restructuring dialogue, especially as CPI figures scare markets. Points of Resilience Houlihan has come down in price more or less in line with markets, by about 20% since we last covered it. We think that in relative terms, this might be exaggerated, since HLI is exposed to less beta in its businesses than the markets.

Jul 01

Struggling crypto lender Babel Finance reportedly employs Houlihan Lokey

Troubled cryptocurrency lender Babel Finance is reportedly hiring Houlihan Lokey (NYSE:HLI), an investment banking firm specializing in financial restructuring, CoinDesk reported Friday, citing two people with knowledge on the matter. “Babel is looking at restructuring," one of the people told CoinDesk. "They’ve hired Houlihan Lokey or are in the process of hiring them. They’re in the process of signing an engagement letter.” The move comes after Hong Kong-based Babel suspended client withdrawals due to "unusual liquidity pressure." A string of crypto lenders such, namely Celsius Network and CoinFlex, have also suspended withdrawals amid turbulent market conditions. "They [Babel] are the next major one to have some kind of some kind of outcome over the next couple of weeks, whether it’s sorting out and getting buy-in from creditors or declaring insolvency or default,” the person said, as quoted by CoinDesk.  Earlier, Voyager Digital (OTCQX:VYGVF) suspended withdrawals, deposits and trading.

Shareholder Returns

HLIUS Capital MarketsUS Market
7D0.9%2.8%1.3%
1Y-1.4%-15.4%-11.7%

Return vs Industry: HLI exceeded the US Capital Markets industry which returned -16% over the past year.

Return vs Market: HLI exceeded the US Market which returned -11.6% over the past year.

Price Volatility

Is HLI's price volatile compared to industry and market?
HLI volatility
HLI Average Weekly Movement4.2%
Capital Markets Industry Average Movement0.5%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: HLI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HLI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19722,257Scott Beiserhttps://www.hl.com

Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. The Corporate Finance segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as financial sponsors on various transactions.

Houlihan Lokey, Inc. Fundamentals Summary

How do Houlihan Lokey's earnings and revenue compare to its market cap?
HLI fundamental statistics
Market CapUS$5.98b
Earnings (TTM)US$422.57m
Revenue (TTM)US$2.32b

14.2x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLI income statement (TTM)
RevenueUS$2.32b
Cost of RevenueUS$77.57m
Gross ProfitUS$2.24b
Other ExpensesUS$1.82b
EarningsUS$422.57m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.14
Gross Margin96.65%
Net Profit Margin18.25%
Debt/Equity Ratio0.04%

How did HLI perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

28%

Payout Ratio

Does HLI pay a reliable dividends?

See HLI dividend history and benchmarks
When do you need to buy HLI by to receive an upcoming dividend?
Houlihan Lokey dividend dates
Ex Dividend DateSep 01 2022
Dividend Pay DateSep 15 2022
Days until Ex dividend19 days
Days until Dividend pay date33 days

Does HLI pay a reliable dividends?

See HLI dividend history and benchmarks