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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Robert Half International Inc. (XNYS:RHI) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
RHI
Name:
ROBERT HALF INTERNATIONAL INC. (XNYS:RHI)
Sector:
54.18M
Industry:
Staffing & Employment Services
CEO:
Mr. M. Keith Waddell
Total Employees:
14,600
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -118.78% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF ROBERT HALF INTERNATIONAL INC.(RHI) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND STAFFING & EMPLOYMENT SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
76.06
One Month Price Target:
$76.67
Six Month Price Target :
$79.72
Likely Price in One Year's Time:
Ticker:
$83.38
Likely Trading Range Today Under (Normal Volatility)
$75.79
Price Upper limit ($) :
$76.42
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$72.27
This week:
$67.58
This month :
$59.11
Other Primary facts
Market Cap:
8.45B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
109.57M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
20.04%
-10.24%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$93.65
$85.54
$58.47
$66.58
Medium risk (<10%) entry points
Buy Call
Sell Call
$82.91
Buy Put:
Sell Put:
$81.18
$69.19
$70.94
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
RHI
Sharpe Ratio:
2.17%
Comparison:
RHI, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 28.48% higher than the industry
& is -4.67% lower than the market/S&P 500 average
Average Returns/Yield of
RHI
Daily returns:
0.06%
Weekly returns:
0.31%
Monthly returns:
1.24%
Yearly returns:
14.00%
Comparison of returns:
Average annual returns/yield (last 3 years) is 6.72% above industry average
Classification:
RHI, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.64
Statistical test of Returns:
RHI has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.46%
Weekly Volatility:
5.49%
Monthly Volatility:
10.99%
Yearly Volatility:
38.06%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.96%
Volatility in last five trading days has been -60.91% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.98%
Weekly VaR:
-11.14%
Monthly VaR:
-22.29%
How Much Can the price of
RHI
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-19%
Worst case (decline):
-77.21%
This translates to price declining to:
$61.61
This translates to price declining to:
$17.33
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
RHI is a 57.31% riskier investment compared to the market/S&P 500 & is 34.77% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -14.31% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
RHI
Beta in relation to market/S&P 500--1.43
Expected beta in 1 year's time:
0.711
Expected beta in 3 year's time:
1.005
Unlevered (debt free) Beta:
1.313
Beta in relation to Nasdaq (XNAS):
0.709
Beta in relation to all global stocks::
0.665
Beta Comparison & Analysis
Beta of competitors/peers::
1.008
Beta is 42.07% higher than peers
Average Industry Beta:
1.192
Beta is 20.12% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
33.54%
Sustainable growth rate is 102.94% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.020
Alpha is -26.23% below industry average alpha yield
Alpha is 126% higher than market/& is unsustainably high
Analysis of Cost of Capital of
RHI
Equity cost of capital:
0.130
Equity cost of capital is 14.52% above industry mean WACC
Unlevered (without debt) cost of capital:
11.89%
Before-tax cost of debt:
0.06%
After-tax cost of debt:
0.05%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.05%
WACC is 19.69% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$62.77
Revenue growth rate per share of (3Y):
5.74
Annual revenue growth rate is 98.61% above the industry average
EPS:
$5.90
Expected Annual growth rate of EPS (3Y):
10.91%
Expected future EPS growth rate is 37.62% higher than the Staffing & Employment Services industry
Free cash flow (FCF) per share:
$5.11
Balance sheet equity growth per share: -100.00%
Equity growth rate per share is -4108.56% lower than the industry
Debt per share
$1.61
EBITDA per share
$8.51
Valuation Analysis Today of
RHI
P/E Ratio:
12.33
P/E Ratio of Competitors/Peers:
17.51
P/E ratio is -29.60% lower than main peers & is -32.56% lower than the industry
Stock price/value with industry average P/E ratio: $107.86
RHI is -29.48% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $31.02
Present value of the expected future dividends only: $17.64
P/S (Price to Sales ratio):
1.21
Price to sales ratio is -54.14% below the industry mean
P/B (Price to book value ratio):
5.74
Price to free cash flow: 14.87
Price to free cash flow ratio is -74.16% lower than the industry
Net income growth rate (3Y):
50.77%
Net income growth rate is 1241.39% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 7.24%
Dividend yeild: 2.13%
Previous Dividend: $0.43
Previous adjusted dividend: $0.43
Previous Dividend: $1.62
Expected next dividend best case: $0.46
Expected next dividend worst case: $0.40
Average dividend payment (long-term): $0.37
Average dividend increase/decrease (growth rate) % per period: 3.46%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 23/08/2022
Expected next dividend declaration date: 08/01/2022
Previous dividend payment date: 15/06/2022
Previous dividend record date: 25/05/2022
Previous dividend declaration date: 05/03/2022
Dividend History:
2022-05-24--$0.43
2021-11-23--$0.38
2021-05-24--$0.38
2022-02-24--$0.43
2021-08-24--$0.38
2021-02-24--$0.38
Dividend growth rate is -123.50% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
12.14%
Net debt to equity ratio:
-19.80%
Debt to assets ratio:
5.98%
Net debt to assets ratio:
-9.75%
Debt-to-asset ratio is -91.12% below industry average
Ability to repay debt:
Interest coverage ratio:
5618.3
Interest coverage ratio is 19149.76% more than industry average
Looking forward:
Debt growth rate:
102.81%
Annual debt growth is -45% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.65
Statistical significance of correlation:
RHI has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.529
Stock price is 22.91% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.529
Correlation of price movement with Nasdaq (^IXIC):
0.037
Covariance of price movement with the market:
0.053
Kurtosis
9.498
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.758
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
RHI
Gross Profit Margin Ratio:
169%
Operating Profit Margin Ratio:
12.53%
Operating profit margin is 78.38% higher than the industry
Net Profit Margin Ratio:
169%
Effective Tax Rate:
25.51%
Effective tax rate is -0.49% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
45.17%
Return on equity (ROE) is 90.01% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
22.24%
Return on assets (ROA) is 212.84% higher than the industry
Financial Leverage:
1.1x
Current Ratio:
1.76
Current ratio is 4.61% above industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 35.1 years
Stock based compensation to net income ratio:
2.31%
In-depth Efficiency Analysis
Revenue generated per employee:
471.1K
Each employee generates -7% less revenue than industry average revenue per employee
EBITDA generated per employee:
63.9K
Each employee generates 65% more EBITDA than industry average revenue per employee
Profit generated per employee:
44.9K
Each employee generates 123% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
3.7K
Each employee generates -131% less free cash flow than industry average revenue per employee
Assets/Capital per employee
46.5K
Each employee generates -131% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
RHI
CARLISLE COMPANIES INCORPORATED (XNYS:CSL)
GFL ENVIRONMENTAL INC. (XNYS:GFL)
SNAP-ON INCORPORATED (XNYS:SNA)
WATSCO, INC. (XNYS:WSO)
Regal Rexnord Corporation (XNYS:RRX)
PENTAIR PUBLIC LIMITED COMPANY (XNYS:PNR)
GRACO INC (XNYS:GGG)
ALLEGION PUBLIC LIMITED COMPANY (XNYS:ALLE)
A. O. SMITH CORPORATION (XNYS:AOS)
Current Analyst Ratings
Strong buy�4%
Buy�13%
Hold�25%
Sell�4%
Strong sell�4%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
6.88B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
3.97B
2.91B
-
-
2.04B
-
2.08M
2.04B
456.00K
166.00K
51.41M
932.64M
861.67M
656.27M
881.06M
224.80M
656.27M
Statement of Cash Flow
Date:
Period:
11.50M
Differed Income Tax :
5.49M
Stock Based Compensation :
15.18M
Change in Working Capital :
- 161261.00K
Accounts Receivables:
- 89597.00K
Other Working Capital:
- 53467.00K
Other Non-Cash Items:
30.01M
Net Cash Provided by Operating Activities:
69.16M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
- 33913.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
550.33M
-
550.33M
1.07B
-
650.10M
2.27B
322.84M
222.86M
2.92M
-
130.11M
-
678.73M
-
2.95B
169.03M
86.28M
106.07M
-
1.03B
1.29B
176.41M
32.56M
208.97M
-
1.50B
111.00K
225.15M
- 23574.0K
1.25B
March 31, 2022 at 6:00:00 AM
6.02B
1.45B
2.95B
-
262.69M
- 287641.0K
21.78M
- 14987.00K
- 27118.00K
-
475.00K
- 62062.00K
- 47498.00K
- 475.00K
- 109560.00K
- 1155.00K
- 68671.00K
550.33M
619.00M
69.16M
- 14987.00K
54.18M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
RHI
2023
2024
2025
2026
2027
$100.93
$110.64
$121.29
$132.97
$145.77