| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$86.93 |
| 52 Week High | US$122.62 |
| 52 Week Low | US$74.23 |
| Beta | 0.68 |
| 1 Month Change | 11.09% |
| 3 Month Change | 2.68% |
| 1 Year Change | -1.38% |
| 3 Year Change | 107.32% |
| 5 Year Change | 149.37% |
| Change since IPO | 288.08% |
Recent News & Updates
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.
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
| HLI | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | 0.9% | 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
| HLI volatility | |
|---|---|
| HLI Average Weekly Movement | 4.2% |
| Capital Markets Industry Average Movement | 0.5% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1972 | 2,257 | Scott Beiser | https://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
| HLI fundamental statistics | |
|---|---|
| Market Cap | US$5.98b |
| Earnings (TTM) | US$422.57m |
| Revenue (TTM) | US$2.32b |
14.2x
P/E Ratio2.6x
P/S RatioIs HLI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HLI income statement (TTM) | |
|---|---|
| Revenue | US$2.32b |
| Cost of Revenue | US$77.57m |
| Gross Profit | US$2.24b |
| Other Expenses | US$1.82b |
| Earnings | US$422.57m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.14 |
| Gross Margin | 96.65% |
| Net Profit Margin | 18.25% |
| Debt/Equity Ratio | 0.04% |
How did HLI perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield28%
Payout RatioDoes HLI pay a reliable dividends?
See HLI dividend history and benchmarks| Houlihan Lokey dividend dates | |
|---|---|
| Ex Dividend Date | Sep 01 2022 |
| Dividend Pay Date | Sep 15 2022 |
| Days until Ex dividend | 19 days |
| Days until Dividend pay date | 33 days |
Does HLI pay a reliable dividends?
See HLI dividend history and benchmarks