HireQuest, Inc. (HQI) stock analysis

P/E above its 5-year median

HireQuest's P/E of 32.5 is above its own 5-year median of 25.3.

P/E above the industry

HireQuest's P/E of 32.5 is above the Personnel Supply Services median of 22.5.

EV/EBITDA above its 5-year median

HireQuest's EV/EBITDA of 22.0 is above its 5-year median of 16.6.

P/B above the industry

HireQuest's price-to-book of 3.74 is above the Personnel Supply Services median of 1.97.

Trading above fair value

The share price of $18.53 is above our fair value estimate of $12.08.

Margin of safety under 20%

The price is 53.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -0.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -20.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 235% over the last twelve months, against a 5-year average of 3.4% a year.

Growing slower than the industry

Revenue grew -7.5% over the last twelve months; the Personnel Supply Services median is 2.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 12.1% over the last twelve months and averaged 15.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 12.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

HireQuest's return on equity of 12.1% is above the Personnel Supply Services median of 4.6%.

Earnings grew over 5 years

Net income grew 3.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 27.1% over the last twelve months, against a 5-year average of 28.1%.

Net margin above the industry

HireQuest's net margin of 27.1% is above the Personnel Supply Services median of -0.0%.

Debt level

Needs debt and equity figures.

Debt trend

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

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 65.5 times.

Short-term assets cover short-term debts

Current assets are 2.74 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.85; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

HireQuest paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; HireQuest yields 1.3%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.