NasdaqGS:HCKT

Stock Analysis Report

Executive Summary

The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in North America and European countries.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Hackett Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

HCKT

1.0%

US IT

1.0%

US Market


1 Year Return

-16.9%

HCKT

24.7%

US IT

6.7%

US Market

Return vs Industry: HCKT underperformed the US IT industry which returned 24.7% over the past year.

Return vs Market: HCKT underperformed the US Market which returned 6.7% over the past year.


Share holder returns

HCKTIndustryMarket
7 Day0.7%1.0%1.0%
30 Day-1.2%-0.3%-1.8%
90 Day-2.2%-2.3%-1.8%
1 Year-15.1%-16.9%26.0%24.7%9.1%6.7%
3 Year5.7%-0.3%97.6%89.3%46.1%36.6%
5 Year182.6%156.8%156.0%132.3%66.9%48.6%

Price Volatility Vs. Market

How volatile is Hackett Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hackett Group undervalued based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: HCKT ($16.33) is trading below our estimate of fair value ($16.86)

Significantly Undervalued: HCKT is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: HCKT is good value based on its PE Ratio (21.5x) compared to the IT industry average (36x).

PE vs Market: HCKT is poor value based on its PE Ratio (21.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: HCKT is poor value based on its PEG Ratio (1.5x)


Price Based on Value of Assets

PB vs Industry: HCKT is good value based on its PB Ratio (3.7x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Hackett Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HCKT's forecast earnings growth (14% per year) is above the savings rate (2.7%).

Earnings vs Market: HCKT's earnings (14% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: HCKT's earnings are forecast to grow, but not significantly.

Revenue vs Market: HCKT's revenue (7.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HCKT's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if HCKT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hackett Group performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HCKT's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: HCKT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HCKT had negative earnings growth (-29.4%) over the past year, making it difficult to compare to the IT industry average (8.4%).


Return on Equity

High ROE: HCKT's Return on Equity (17.1%) is considered low.


Return on Assets

ROA vs Industry: HCKT has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: HCKT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hackett Group's financial position?


Financial Position Analysis

Short Term Liabilities: HCKT's short term assets ($75.3M) exceeds its short term liabilities ($42.3M)

Long Term Liabilities: HCKT's short term assets (75.3M) exceeds its long term liabilities (17.9M)


Debt to Equity History and Analysis

Debt Level: HCKT's debt to equity ratio (3.4%) is considered satisfactory

Reducing Debt: HCKT's debt to equity ratio has reduced from 33.3% to 3.4% over the past 5 years.

Debt Coverage: HCKT's debt is well covered by operating cash flow (791.3%).

Interest Coverage: HCKT's interest payments on its debt are well covered by EBIT (74.9x coverage).


Balance Sheet

Inventory Level: HCKT has a low level of unsold assets or inventory.

Debt Coverage by Assets: HCKT's debt is covered by short term assets (assets are 16.736660x debt).


Next Steps

Dividend

What is Hackett Group's current dividend yield, its reliability and sustainability?

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HCKT's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: HCKT's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Whilst dividend payments have been stable, HCKT has been paying a dividend for less than 10 years.

Growing Dividend: HCKT's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.1%), HCKT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hackett Group's salary, the management and board of directors tenure and is there insider trading?

22.8yrs

Average management tenure


CEO

Ted Fernandez (62yo)

22.8yrs

Tenure

US$2,054,910

Compensation

Mr. Ted A. Fernandez co-founded The Hackett Group, Inc. (formerly, Answerthink Inc.) in 1997. Mr. Fernandez has been the Chairman and Chief Executive Officer at The Hackett Group, Inc. since 1997. Mr. Fern ...


CEO Compensation Analysis

Compensation vs. Market: Ted's total compensation ($USD2.05M) is about average for companies of similar size in the US market ($USD1.85M).

Compensation vs Earnings: Ted's compensation has been consistent with company performance over the past year.


Management Age and Tenure

22.8yrs

Average Tenure

62yo

Average Age

Experienced Management: HCKT's management team is seasoned and experienced (22.8 years average tenure).


Board Age and Tenure

13.7yrs

Average Tenure

71yo

Average Age

Experienced Board: HCKT's board of directors are seasoned and experienced ( 13.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ted Fernandez (62yo)

    Co-Founder

    • Tenure: 22.8yrs
    • Compensation: US$2.05m
  • David Dungan (65yo)

    Co-Founder

    • Tenure: 13.7yrs
    • Compensation: US$1.23m
  • Frank Zomerfeld

    General Counsel & Secretary

    • Tenure: 0yrs
  • Robert Ramirez (53yo)

    CFO & Executive VP of Finance

    • Tenure: 12.2yrs
    • Compensation: US$493.32k

Board Members

  • Ted Fernandez (62yo)

    Co-Founder

    • Tenure: 22.8yrs
    • Compensation: US$2.05m
  • David Dungan (65yo)

    Co-Founder

    • Tenure: 13.7yrs
    • Compensation: US$1.23m
  • John Harris (71yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$112.00k
  • Alan T. Wix (77yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$112.00k
  • Richard Hamlin (71yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$112.00k
  • Jay Cofield

    Member of Executive Advisory Council

    • Tenure: 4.1yrs
  • Jeffrey Goldstein

    Member of Executive Advisory Council

    • Tenure: 0yrs
  • Eric Hutcherson

    Member of Executive Advisory Council

    • Tenure: 0yrs
  • Michael Bordoni

    Member of Executive Advisory Council

    • Tenure: 4.1yrs
  • Robert Rivero (77yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$112.00k

Company Information

The Hackett Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Hackett Group, Inc.
  • Ticker: HCKT
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: US$487.553m
  • Shares outstanding: 29.86m
  • Website: https://www.thehackettgroup.com

Number of Employees


Location

  • The Hackett Group, Inc.
  • 1001 Brickell Bay Drive
  • 30th Floor
  • Miami
  • Florida
  • 33131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AWTDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1998
HCKTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1998

Biography

The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in North America and European countries. Its executive advisory programs include best practice intelligence ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:02
End of Day Share Price2019/10/11 00:00
Earnings2019/06/28
Annual Earnings2018/12/28


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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)