Houlihan Lokey
Market Cap
US$4.4b
Last Updated
2021/03/01 23:02 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
Earnings are forecast to decline by an average of 0.5% per year for the next 3 years
Snowflake Analysis
Outstanding track record with flawless 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 +/- 3% a week.
Volatility Over Time: HLI's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-0.7%
HLI
0.7%
US Capital Markets
-1.3%
US Market
1 Year Return
21.3%
HLI
36.1%
US Capital Markets
41.9%
US Market
Return vs Industry: HLI underperformed the US Capital Markets industry which returned 38.2% over the past year.
Return vs Market: HLI underperformed the US Market which returned 36.5% over the past year.
Shareholder returns
| HLI | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | 0.7% | -1.3% |
| 30 Day | 0.4% | 11.6% | 7.5% |
| 90 Day | -1.3% | 18.7% | 15.9% |
| 1 Year | 24.7%21.3% | 39.4%36.1% | 44.8%41.9% |
| 3 Year | 52.9%42.4% | 41.6%31.0% | 49.1%41.0% |
| 5 Year | 204.6%170.8% | 145.4%115.2% | 113.1%92.8% |
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
4 months ago | Simply Wall St
What Makes Houlihan Lokey, Inc. (NYSE:HLI) A Great Dividend Stock?5 months ago | Simply Wall St
What We Learned About Houlihan Lokey's (NYSE:HLI) CEO Compensation6 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?
30.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HLI ($65.08) is trading below our estimate of fair value ($94.16)
Significantly Below Fair Value: HLI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HLI is good value based on its PE Ratio (15.5x) compared to the US Capital Markets industry average (23.1x).
PE vs Market: HLI is good value based on its PE Ratio (15.5x) compared to the US market (21.2x).
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 (3.3x) compared to the US Capital Markets industry average (14.4x).
Next Steps
Future Growth
How is Houlihan Lokey forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-0.5%
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 (-0.5% per year).
Earnings vs Market: HLI's earnings are forecast to decline over the next 3 years (-0.5% per year).
High Growth Earnings: HLI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: HLI's revenue (1.1% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: HLI's revenue (1.1% 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 (23.2%)
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Past Performance
How has Houlihan Lokey performed over the past 5 years?
20.0%
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 (14.8%).
Past Earnings Growth Analysis
Earnings Trend: HLI's earnings have grown significantly by 20% per year over the past 5 years.
Accelerating Growth: HLI's earnings growth over the past year (60%) exceeds its 5-year average (20% per year).
Earnings vs Industry: HLI earnings growth over the past year (60%) exceeded the Capital Markets industry 10.4%.
Return on Equity
High ROE: HLI's Return on Equity (20.1%) is considered high.
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Financial Health
How is Houlihan Lokey's financial position?
Financial Position Analysis
Short Term Liabilities: HLI's short term assets ($783.0M) exceed its short term liabilities ($548.3M).
Long Term Liabilities: HLI's short term assets ($783.0M) exceed its long term liabilities ($217.2M).
Debt to Equity History and Analysis
Debt Level: HLI is debt free.
Reducing Debt: HLI has no debt compared to 5 years ago when its debt to equity ratio was 12.2%.
Debt Coverage: HLI has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: HLI has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is Houlihan Lokey current dividend yield, its reliability and sustainability?
2.03%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HLI's dividend (2.03%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: HLI's dividend (2.03%) is low compared to the top 25% of dividend payers in the US market (3.76%).
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 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.4%), 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 (38.1% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
7.8yrs
Average management tenure
CEO
Scott Beiser (60 yo)
18.08yrs
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 ($USD4.99M).
Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.08yrs | US$3.35m | 1.67% $ 73.0m | |
| CEO, Senior MD & Director | 18.08yrs | US$4.56m | 1.3% $ 57.2m | |
| Co-President | 6.08yrs | US$3.05m | 0.80% $ 35.0m | |
| Co-President | 6.08yrs | US$7.62m | 1.22% $ 53.4m | |
| MD & CFO | 8.17yrs | US$1.34m | 0.12% $ 5.4m | |
| Director of Financial Restructuring Group | no data | no data | no data | |
| Financial Restructuring Managing Director | no data | no data | no data | |
| Managing Director of Financial Institutions Group | no data | no data | no data | |
| Managing Director of Investment Banking | no data | no data | no data | |
| Vice President | no data | no data | no data | |
| Managing Director of Corporate Finance | 3.08yrs | no data | no data | |
| Investor Relations Professional | no data | no data | no data |
7.8yrs
Average Tenure
60yo
Average Age
Experienced Management: HLI's management team is seasoned and experienced (7.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 8.08yrs | US$3.35m | 1.67% $ 73.0m | |
| CEO, Senior MD & Director | 18.08yrs | US$4.56m | 1.3% $ 57.2m | |
| Co-President | 6.08yrs | US$3.05m | 0.80% $ 35.0m | |
| Co-President | 6.08yrs | US$7.62m | 1.22% $ 53.4m | |
| Independent Director | 6.08yrs | US$180.00k | 0.035% $ 1.5m | |
| Independent Director | 6.08yrs | US$150.00k | 0.016% $ 682.8k | |
| Independent Chairman | no data | no data | no data | |
| Independent Director | 2.33yrs | US$150.00k | 0.0067% $ 294.5k | |
| Independent Director | 0.25yr | no data | 0.0023% $ 100.8k | |
| Independent Director | 1.25yrs | US$130.46k | 0.0042% $ 182.3k | |
| Independent Director | 0.25yr | no data | 0.0023% $ 100.8k |
6.1yrs
Average Tenure
59.5yo
Average Age
Experienced Board: HLI's board of directors are considered experienced (6.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.
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$4.383b
- Shares outstanding: 68.95m
- Website: https://www.hl.com
Number of Employees
Location
- Houlihan Lokey, Inc.
- 10250 Constellation Boulevard
- 5th Floor
- Los Angeles
- California
- 90067
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HLI | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Aug 2015 |
| 2HL | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Aug 2015 |
| HLI * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Aug 2015 |
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 | 2021/03/01 23:02 |
| End of Day Share Price | 2021/03/01 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
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.