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 slightly overvalued.


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%

NasdaqGS:HCKT

-0.2%

US IT

-1.0%

US Market


1 Year Return

-14.6%

NasdaqGS:HCKT

21.4%

US IT

-0.4%

US Market

HCKT underperformed the IT industry which returned 21.4% over the past year.

HCKT underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

HCKTIndustryMarket
7 Day-0.7%-0.2%-1.0%
30 Day-2.9%-2.2%-3.3%
90 Day-0.8%7.1%0.8%
1 Year-12.8%-14.6%22.7%21.4%1.9%-0.4%
3 Year8.8%2.6%98.9%90.4%39.4%30.4%
5 Year183.0%157.1%139.7%115.5%54.2%37.1%

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?

5%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Hackett Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Hackett Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Hackett Group is good value based on earnings compared to the US IT industry average.

Hackett Group is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Hackett Group is poor value based on expected growth next year.


Price Based on Value of Assets

Hackett Group is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Hackett Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hackett Group's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

Hackett Group's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

Hackett Group's revenue growth is positive but not above the United States of America market average.

Hackett Group's earnings growth is positive but not above the United States of America market average.

Hackett Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hackett Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Hackett Group has delivered over 20% year on year earnings growth in the past 5 years.

Hackett Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hackett Group's 1-year earnings growth is negative, it can't be compared to the US IT industry average.


Return on Equity

Hackett Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hackett Group used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Hackett Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hackett Group's financial position?


Financial Position Analysis

Hackett Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hackett Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Hackett Group's level of debt (3.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (33.3% vs 3.4% today).

Debt is well covered by operating cash flow (791.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 74.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 16.7x debt.


Next Steps

Dividend

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

2.25%

Current Dividend Yield


Dividend Yield and Payments Analysis

Hackett Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Hackett Group's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Whilst dividend payments have been stable, Hackett Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Hackett Group only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

22.6yrs

Average management tenure


CEO

Ted Fernandez (62yo)

22.6yrs

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

Ted's remuneration is about average for companies of similar size in United States of America.

Ted's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

22.6yrs

Average Tenure

62yo

Average Age

The average tenure for the Hackett Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

13.5yrs

Average Tenure

71yo

Average Age

The average tenure for the Hackett Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Ted Fernandez (62yo)

    Co-Founder

    • Tenure: 22.6yrs
    • Compensation: $2.05m
  • David Dungan (65yo)

    Co-Founder

    • Tenure: 22.6yrs
    • Compensation: $1.23m
  • Frank Zomerfeld

    General Counsel & Secretary

  • Robert Ramirez (53yo)

    CFO & Executive VP of Finance

    • Tenure: 12.0yrs
    • Compensation: $493.32k

Board Members

  • Jay Cofield

    Member of Executive Advisory Council

    • Tenure: 3.9yrs
  • Richard Hamlin (71yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: $112.00k
  • Alan T. Wix (77yo)

    Independent Director

    • Tenure: 20.6yrs
    • Compensation: $112.00k
  • Jeffrey Goldstein

    Member of Executive Advisory Council

  • Michael Bordoni

    Member of Executive Advisory Council

    • Tenure: 3.9yrs
  • Eric Hutcherson

    Member of Executive Advisory Council

  • Robert Rivero (77yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: $112.00k
  • Ted Fernandez (62yo)

    Co-Founder

    • Tenure: 22.6yrs
    • Compensation: $2.05m
  • David Dungan (65yo)

    Co-Founder

    • Tenure: 13.5yrs
    • Compensation: $1.23m
  • John Harris (71yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: $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$478.297m
  • Shares outstanding: 29.86m
  • Website: Click here

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 Analysis2019/08/18 00:20
End of Day Share Price2019/08/16 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.