NasdaqGS:HCKT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and good 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

Stable Share Price: HCKT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

HCKT

-0.8%

US IT

0.4%

US Market


1 Year Return

-22.0%

HCKT

26.9%

US IT

17.8%

US Market

Return vs Industry: HCKT underperformed the US IT industry which returned 26.9% over the past year.

Return vs Market: HCKT underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HCKTIndustryMarket
7 Day-1.1%-0.8%0.4%
30 Day13.6%3.9%6.1%
90 Day-4.6%5.9%8.9%
1 Year-19.9%-22.0%28.2%26.9%20.5%17.8%
3 Year-6.6%-12.8%89.7%82.4%42.3%32.9%
5 Year-2.5%-11.9%153.5%133.2%84.2%63.4%

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 compared to its fair value and its price relative to the market?

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCKT ($13.5) is trading below our estimate of fair value ($18.62)

Significantly Below Fair Value: HCKT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HCKT is poor value based on its PE Ratio (37.4x) compared to the US IT industry average (31.9x).

PE vs Market: HCKT is poor value based on its PE Ratio (37.4x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: HCKT is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HCKT is good value based on its PB Ratio (3x) compared to the US IT industry average (3.8x).


Next Steps

Future Growth

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

85.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCKT's forecast earnings growth (85.3% per year) is above the savings rate (2.2%).

Earnings vs Market: HCKT's earnings (85.3% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HCKT's revenue (7.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: HCKT's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HCKT has a large one-off loss of $10.8M impacting its June 26 2020 financial results.

Growing Profit Margin: HCKT's current net profit margins (4.3%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: HCKT's earnings have grown by 7.8% 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 (-52.1%) over the past year, making it difficult to compare to the IT industry average (8.1%).


Return on Equity

High ROE: HCKT's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Hackett Group's financial position?


Financial Position Analysis

Short Term Liabilities: HCKT's short term assets ($78.1M) exceed its short term liabilities ($42.3M).

Long Term Liabilities: HCKT's short term assets ($78.1M) exceed its long term liabilities ($13.6M).


Debt to Equity History and Analysis

Debt Level: HCKT is debt free.

Reducing Debt: HCKT has no debt compared to 5 years ago when its debt to equity ratio was 19.7%.

Debt Coverage: HCKT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HCKT has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HCKT's dividend (2.82%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: HCKT's dividend (2.82%) is low compared to the top 25% of dividend payers in the US market (4.56%).


Stability and Growth of Payments

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 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.2%), HCKT's payments are 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

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

23.8yrs

Average management tenure


CEO

Ted Fernandez (63 yo)

23.75yrs

Tenure

US$1,726,860

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 ($USD1.73M) is about average for companies of similar size in the US market ($USD1.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ted Fernandez
Co-Founder23.75yrsUS$1.73m6.62%
$ 26.0m
David Dungan
Co-Founder14.67yrsUS$1.05m2.21%
$ 8.7m
Robert Ramirez
CFO & Executive VP of Finance13.17yrsUS$552.36k0.45%
$ 1.8m
Frank Zomerfeld
General Counsel & Secretaryno datano datano data

23.8yrs

Average Tenure

63yo

Average Age

Experienced Management: HCKT's management team is seasoned and experienced (23.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ted Fernandez
Co-Founder23.75yrsUS$1.73m6.62%
$ 26.0m
David Dungan
Co-Founder14.67yrsUS$1.05m2.21%
$ 8.7m
John Harris
Independent Director14.75yrsUS$112.00k0.11%
$ 437.5k
Alan T. Wix
Independent Director21.75yrsUS$112.00k0.066%
$ 257.6k
Richard Hamlin
Independent Director17.67yrsUS$112.00k0.15%
$ 607.9k
Jay Cofield
Member of Executive Advisory Council5.08yrsno datano data
Kevin Horner
Member of Executive Advisory Council4.58yrsno datano data
Cynthia Dautrich
Member of Executive Advisory Council4.33yrsno datano data
Michael Bordoni
Member of Executive Advisory Council5.08yrsno datano data
Robert Rivero
Independent Director4.67yrsUS$112.00kno data
Tim Heffron
Member of Executive Advisory Councilno datano datano data
Kerrie Hoffman
Member of Executive Advisory Councilno datano datano data

9.9yrs

Average Tenure

72yo

Average Age

Experienced Board: HCKT's board of directors are considered experienced (9.9 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 not been meaningfully diluted in the past year.


Top Shareholders

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$392.746m
  • Shares outstanding: 30.06m
  • Website: https://www.thehackettgroup.com

Number of Employees


Location

  • The Hackett Group, Inc.
  • 1001 Brickell Bay Drive
  • Suite 3000
  • 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 Analysis2020/10/26 23:45
End of Day Share Price2020/10/26 00:00
Earnings2020/06/26
Annual Earnings2019/12/27


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.