Hackett Group, Inc. (HCKT) stock analysis

P/E above its 5-year median

Hackett's P/E of 19.0 is above its own 5-year median of 19.0.

P/E below the industry

Hackett's P/E of 19.0 is below the Management and Public Relations Services median of 25.4.

EV/EBITDA below its 5-year median

Hackett's EV/EBITDA of 12.2 is below its 5-year median of 13.3.

P/B above the industry

Hackett's price-to-book of 4.66 is above the Management and Public Relations Services median of 2.11.

Trading below fair value

The share price of $13.32 is below our fair value estimate of $14.72.

Margin of safety under 20%

The price is 9.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -28.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 63.4% over the last twelve months, against a 5-year average of 18.8% a year.

Growing slower than the industry

Revenue grew -8.2% over the last twelve months; the Management and Public Relations Services median is 7.2%.

Guidance issued

The latest outlook (fourth quarter of 2026 total revenue before reimbursements, Nov 3, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 41.0% over the last twelve months, against 37.8% a year earlier.

Return on equity over 15%

Return on equity was 20.7% over the last twelve months and averaged 31.7% over five years.

Return on capital over 10%

Return on invested capital was 14.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Hackett's return on equity of 20.7% is above the Management and Public Relations Services median of 0.4%.

Earnings grew over 5 years

Net income grew 18.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.3% over the last twelve months, against a 5-year average of 10.8%.

Net margin above the industry

Hackett's net margin of 6.3% is above the Management and Public Relations Services median of 0.2%.

High debt

Debt is 121% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 35.9% of total debt.

Interest well covered

Operating income covers interest expense 8.1 times.

Short-term assets cover short-term debts

Current assets are 2.13 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.01; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Hackett paid dividends worth 3.6% of the share price over the last twelve months.

Yield below Treasuries

The 3.6% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Hackett yields 3.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Covered by earnings

Dividends take 68.8% of net income.

Covered by free cash flow

Dividends take 59.0% of free cash flow.