Houlihan Lokey, Inc. (HLI) stock analysis
Close on Nov 12, 2026Market cap $9.96BP/E 24.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed14 of 30 checks passed
Houlihan Lokey passes 14 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 2/6
- Past performance
- 3/6
- Financial health
- 5/6
- Dividend
- 3/6
What stands out
Return on capital over 10%
Return on invested capital was 27.2%, above the 10% that usually covers the cost of capital.
No debt
Houlihan Lokey has no borrowings on its latest balance sheet.
Earnings grew over 5 years
Net income grew 6.4% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 13.1% a year over the last three fiscal years.
What to watch
Margin of safety under 20%
The price is 14.1% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $146.17 is above our fair value estimate of $128.07.
Earnings growth not accelerating
Net income grew -5.4% over the last twelve months, against a 5-year average of 6.4% a year.
P/E above the industry
Houlihan Lokey's P/E of 24.5 is above the Services Allied with the Exchange of Securities median of 21.0.
Valuation1/6
P/E below its 5-year median
Houlihan Lokey's P/E of 24.5 is below its own 5-year median of 27.1.
P/E above the industry
Houlihan Lokey's P/E of 24.5 is above the Services Allied with the Exchange of Securities median of 21.0.
EV/EBITDA above its 5-year median
Houlihan Lokey's EV/EBITDA of 16.9 is above its 5-year median of 16.8.
P/B above the industry
Houlihan Lokey's price-to-book of 4.40 is above the Services Allied with the Exchange of Securities median of 3.70.
Trading above fair value
The share price of $146.17 is above our fair value estimate of $128.07.
Margin of safety under 20%
The price is 14.1% above fair value, so there is no margin of safety.
Growth2/6
Revenue growing 10%+ a year
Revenue grew 13.1% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 18.3% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -5.4% over the last twelve months, against a 5-year average of 6.4% a year.
Growing slower than the industry
Revenue grew -0.4% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 27.2%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Houlihan Lokey's return on equity of 17.7% is above the Services Allied with the Exchange of Securities median of 15.7%.
Earnings grew over 5 years
Net income grew 6.4% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 15.8% over the last twelve months, against a 5-year average of 16.2%.
Net margin below the industry
Houlihan Lokey's net margin of 15.8% is below the Services Allied with the Exchange of Securities median of 16.3%.
Financial health5/6
No debt
Houlihan Lokey has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Low bankruptcy risk
The Altman Z-score is 5.59; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
Houlihan Lokey paid dividends worth 1.8% of the share price over the last twelve months.
Yield below Treasuries
The 1.8% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; Houlihan Lokey yields 1.8%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 46.4% of net income.
Covered by free cash flow
Dividends take 46.5% of free cash flow.
Fair value
How we estimate itOur estimate per share
$128.07
The share price is 14% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 24.1× | 27.1× | 21.0× | $143.71 | 40% |
| EV/EBITDA | 14.4× | 16.8× | 12.0× | $126.63 | 35% |
| P/B | 3.7× | – | 3.7× | $123.12 | 10% |
| Earnings power | 9.2% cost of equity | – | – | $93.03 | 15% |
| Fair value | $128.07 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 27.1
- Services Allied with the Exchange of Securities median 21.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $108.23M
- Value traded per 1% price move
- $70.91M
Downside
Medium risk
- Typical loss in a bad month
- 16.2%
- Volatility (annualized)
- 31%
- Sharpe ratio, 1 year
- -0.77
- Beta to the S&P 500 (5Y)
- 0.87
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2013 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +9.5% | +13.1% | +11.4% | – | |
| Operating income | +4.9% | +15.5% | +5.2% | +15.3% | |
| Net income | +6.5% | +18.7% | +6.4% | +19.8% | |
| EPS, diluted | +6.9% | +18.3% | +6.5% | +18.9% | |
| Free cash flow | -15.7% | +99.8% | +3.8% | +76.4% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on assets | 8.8% | 15.2% | 10.5% | |
| Capex to revenue | 1.7% | 0.9% | 0.9% | |
| Diluted shares | 67M | 69M | 68M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Houlihan Lokey generated $2.75B from operations and spent $1.54B on capital expenditure, dividends and share buybacks. 12% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 16.3% | 0.64× | 1.80× | 18.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$425.70M
- Cash generatingOperating cash flow above zero$704.13M
- Return on assets improvedROA up on the prior year12.6% → 11.1%
- Earnings backed by cashOperating cash flow above net income$704.13M vs $425.70M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise69M → 68M
- Gross margin improvedGross margin up on the prior year32.32% → –
- More efficientAsset turnover rose0.75 → 0.69
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