The Hackett Group, Inc. (NASDAQ:HCKT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of HCKT, it is a company with great financial health as well as a a strong track record of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Hackett Group here.
Flawless balance sheet with outstanding track record
Over the past year, HCKT has grown its earnings by 39%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 26%, which is what investors like to see! HCKT’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that HCKT has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. HCKT seems to have put its debt to good use, generating operating cash levels of 2.77x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Hackett Group, there are three essential factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for HCKT’s future growth? Take a look at our free research report of analyst consensus for HCKT’s outlook.
- Valuation: What is HCKT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HCKT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HCKT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.