Houlihan Lokey
Market Cap
US$5.9b
Last Updated
2021/07/24 23:23 UTC
Data Sources
Company Financials +
Executive Summary
Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record with excellent balance sheet.
Similar Companies
Share Price & News
How has Houlihan Lokey's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
6.9%
HLI
1.7%
US Capital Markets
2.0%
US Market
1 Year Return
53.1%
HLI
55.9%
US Capital Markets
39.1%
US Market
Return vs Industry: HLI underperformed the US Capital Markets industry which returned 55.8% over the past year.
Return vs Market: HLI exceeded the US Market which returned 39.1% over the past year.
Shareholder returns
| HLI | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.9% | 1.7% | 2.0% |
| 30 Day | 8.0% | 0.7% | 1.6% |
| 90 Day | 23.4% | 5.8% | 3.5% |
| 1 Year | 56.5%53.1% | 59.2%55.9% | 41.3%39.1% |
| 3 Year | 88.1%75.2% | 70.5%58.1% | 64.0%53.8% |
| 5 Year | 321.7%275.4% | 171.3%138.4% | 123.9%99.0% |
Long-Term Price Volatility Vs. Market
How volatile is Houlihan Lokey's share price compared to the market and industry in the last 5 years?
Simply Wall St News
9 months ago | Simply Wall St
What Makes Houlihan Lokey, Inc. (NYSE:HLI) A Great Dividend Stock?10 months ago | Simply Wall St
What We Learned About Houlihan Lokey's (NYSE:HLI) CEO Compensation10 months ago | Simply Wall St
Should You Buy Houlihan Lokey, Inc. (NYSE:HLI) For Its Upcoming Dividend?Valuation
Is Houlihan Lokey undervalued compared to its fair value and its price relative to the market?
23.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HLI ($86.09) is trading below our estimate of fair value ($112.84)
Significantly Below Fair Value: HLI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HLI is poor value based on its PE Ratio (18.1x) compared to the US Capital Markets industry average (13.4x).
PE vs Market: HLI is good value based on its PE Ratio (18.1x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: HLI is poor value based on its PEG Ratio (7.2x)
Price to Book Ratio
PB vs Industry: HLI is good value based on its PB Ratio (4.2x) compared to the US Capital Markets industry average (61.8x).
Future Growth
How is Houlihan Lokey forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
2.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HLI's forecast earnings growth (2.5% per year) is above the savings rate (2%).
Earnings vs Market: HLI's earnings (2.5% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: HLI's earnings are forecast to grow, but not significantly.
Revenue vs Market: HLI's revenue (2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: HLI's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HLI's Return on Equity is forecast to be high in 3 years time (22.8%)
Past Performance
How has Houlihan Lokey performed over the past 5 years?
21.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HLI has high quality earnings.
Growing Profit Margin: HLI's current net profit margins (20.5%) are higher than last year (15.9%).
Past Earnings Growth Analysis
Earnings Trend: HLI's earnings have grown significantly by 21.2% per year over the past 5 years.
Accelerating Growth: HLI's earnings growth over the past year (70.2%) exceeds its 5-year average (21.2% per year).
Earnings vs Industry: HLI earnings growth over the past year (70.2%) exceeded the Capital Markets industry 51.3%.
Return on Equity
High ROE: HLI's Return on Equity (22.6%) is considered high.
Financial Health
How is Houlihan Lokey's financial position?
Financial Position Analysis
Short Term Liabilities: HLI's short term assets ($1.1B) exceed its short term liabilities ($812.1M).
Long Term Liabilities: HLI's short term assets ($1.1B) exceed its long term liabilities ($230.4M).
Debt to Equity History and Analysis
Debt Level: HLI's debt to equity ratio (0.06%) is considered satisfactory.
Reducing Debt: HLI's debt to equity ratio has reduced from 11.7% to 0.06% over the past 5 years.
Debt Coverage: HLI's debt is well covered by operating cash flow (70884.7%).
Interest Coverage: Insufficient data to determine if HLI's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Houlihan Lokey current dividend yield, its reliability and sustainability?
2.00%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HLI's dividend (2%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: HLI's dividend (2%) is low compared to the top 25% of dividend payers in the US market (3.56%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HLI has been paying a dividend for less than 10 years.
Growing Dividend: HLI's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.3%), HLI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HLI's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.3yrs
Average management tenure
CEO
Scott Beiser (61 yo)
18.5yrs
Tenure
US$4,562,462
Compensation
Mr. Scott Lee Beiser has been the Chief Executive Officer of Houlihan Lokey, Inc. since 2003 and its Director since 1991. Mr. Beiser is Senior MD of Houlihan Lokey, Inc. He serves on the Board of Directors...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD4.56M) is about average for companies of similar size in the US market ($USD6.50M).
Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HLI's management team is seasoned and experienced (8.3 years average tenure).
Board Members
Experienced Board: HLI'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: HLI insiders have bought more shares than they have sold 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
Houlihan Lokey, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Houlihan Lokey, Inc.
- Ticker: HLI
- Exchange: NYSE
- Founded: 1972
- Industry: Investment Banking and Brokerage
- Sector: Diversified Financials
- Market Cap: US$5.871b
- Shares outstanding: 68.20m
- Website: https://www.hl.com
Number of Employees
Location
- Houlihan Lokey, Inc.
- 10250 Constellation Boulevard
- 5th Floor
- Los Angeles
- California
- 90067
- United States
Listings
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/24 23:23 |
| End of Day Share Price | 2021/07/23 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
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.