NYSE:HLI

Stock Analysis Report

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Market Cap

US$5.2b

Last Updated

2021/06/20 23:07 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


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

-4.3%

HLI

-3.1%

US Capital Markets

-1.9%

US Market


1 Year Return

32.4%

HLI

48.9%

US Capital Markets

38.2%

US Market

Return vs Industry: HLI underperformed the US Capital Markets industry which returned 48.8% over the past year.

Return vs Market: HLI underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

HLIIndustryMarket
7 Day-4.3%-3.1%-1.9%
30 Day2.8%-0.6%1.0%
90 Day15.6%7.1%3.8%
1 Year35.3%32.4%52.1%48.9%40.4%38.2%
3 Year56.1%45.4%60.6%48.9%57.5%47.8%
5 Year268.2%227.8%180.7%146.7%127.2%101.7%

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

Valuation

Is Houlihan Lokey undervalued compared to its fair value and its price relative to the market?

29.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLI ($76.24) is trading below our estimate of fair value ($108.26)

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 (16x) compared to the US Capital Markets industry average (14.6x).

PE vs Market: HLI is good value based on its PE Ratio (16x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HLI is good value based on its PB Ratio (3.8x) compared to the US Capital Markets industry average (64.8x).


Future Growth

How is Houlihan Lokey forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLI's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: HLI's earnings are forecast to decline over the next 3 years (-1.4% per year).

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

Revenue vs Market: HLI's revenue (0.9% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: HLI's revenue (0.9% 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 (22.6%)


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 50.1%.


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?

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HLI's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: HLI's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 (46.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average management tenure


CEO

Scott Beiser (60 yo)

18.42yrs

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 ($USD4.56M) is below average for companies of similar size in the US market ($USD6.78M).

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 (8.2 years average tenure).


Board Members

Experienced Board: HLI's board of directors are considered experienced (4.5 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$5.199b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 23:07
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.