Last Updated: 13 Nov 2024
Executive Summary
Robert Half International Inc. (RHI) is a leading global human resource consulting firm with a market capitalization of $7.87 billion. The company has been experiencing steady growth in recent years, with revenue increasing by 6.3% in the latest quarter and earnings per share increasing by 2.8%. RHI's strong financial performance is supported by its solid fundamentals, including a high profit margin, strong return on equity, and low debt-to-equity ratio. The company's stock is currently trading at $76.4, which is below its 52-week high of $86.37. However, analysts are bullish on RHI's long-term prospects, with a consensus price target of $64.7.
Company Overview
Robert Half International was founded in 1948 and is headquartered in Menlo Park, California. The company provides a range of human resource services, including temporary and permanent staffing, consulting, and outsourcing. RHI operates in over 400 locations worldwide and has a team of over 11,000 employees. The company's clients include a diverse range of businesses, from small businesses to Fortune 500 companies.
Fundamental Analysis
RHI's financial performance has been strong in recent years. The company's revenue has grown by 6.3% in the latest quarter and earnings per share have increased by 2.8%. RHI's strong financial performance is supported by its solid fundamentals, including a high profit margin, strong return on equity, and low debt-to-equity ratio.
Profit Margin: RHI's profit margin is 4.84%, which is higher than the industry average of 3.5%. This indicates that the company is able to generate a higher profit margin than its competitors.
Return on Equity: RHI's return on equity is 18.6%, which is higher than the industry average of 12.5%. This indicates that the company is able to generate a higher return on its shareholders' investment than its competitors.
Debt-to-Equity Ratio: RHI's debt-to-equity ratio is 0.25, which is lower than the industry average of 0.50. This indicates that the company has a low level of debt relative to its equity, which reduces its financial risk.
Technical Analysis
RHI's stock price has been trending higher in recent months. The stock is currently trading at $76.4, which is above its 50-day moving average of $66.6 and its 200-day moving average of $69.41. This indicates that the stock is in a bullish trend.
The stock's relative strength index (RSI) is currently at 65, which is above the neutral level of 50. This indicates that the stock is overbought and may be due for a correction. However, the stock's moving average convergence divergence (MACD) is currently above its signal line, which indicates that the stock is still in a bullish trend.
Short Term Outlook
In the short term, RHI's stock price is likely to continue to trend higher. The stock is currently trading above its key moving averages and its RSI is above the neutral level. However, the stock's RSI is above 70, which indicates that it is overbought and may be due for a correction.
Long Term Outlook
In the long term, RHI's stock price is likely to continue to grow. The company has a strong track record of financial performance and is well-positioned to benefit from the growing demand for human resource services. Analysts are bullish on RHI's long-term prospects, with a consensus price target of $64.7.
Analyst Recommendations
Analysts are bullish on RHI's long-term prospects. The consensus price target for the stock is $64.7, which represents a potential upside of 12.6% from the current price of $76.4. One analyst has a strong buy rating on the stock, two analysts have a buy rating, five analysts have a hold rating, four analysts have a sell rating, and one analyst has a strong sell rating.
