Heidrick Struggles Return On Equity vs. Current Valuation

HSII Stock  USD 46.14  0.01  0.02%   
Based on Heidrick Struggles' profitability indicators, Heidrick Struggles International is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Heidrick Struggles' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.11769974
Current Value
0.12
Quarterly Volatility
0.37135895
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Heidrick Struggles' Price To Sales Ratio is increasing as compared to previous years. The Heidrick Struggles' current Price Sales Ratio is estimated to increase to 1.01, while Days Sales Outstanding is projected to decrease to 48.88. As of now, Heidrick Struggles' Net Income is increasing as compared to previous years. The Heidrick Struggles' current Income Tax Expense is estimated to increase to about 36 M, while Accumulated Other Comprehensive Income is projected to decrease to under 122.5 K.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.250.2652
Notably Down
Slightly volatile
For Heidrick Struggles profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Heidrick Struggles to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Heidrick Struggles International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Heidrick Struggles's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Heidrick Struggles International over time as well as its relative position and ranking within its peers.
  

Heidrick Struggles' Revenue Breakdown by Earning Segment

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Is Human Resource & Employment Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Heidrick Struggles. If investors know Heidrick will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Heidrick Struggles listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Dividend Share
0.6
Earnings Share
1.83
Revenue Per Share
53.189
Quarterly Revenue Growth
0.059
The market value of Heidrick Struggles is measured differently than its book value, which is the value of Heidrick that is recorded on the company's balance sheet. Investors also form their own opinion of Heidrick Struggles' value that differs from its market value or its book value, called intrinsic value, which is Heidrick Struggles' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Heidrick Struggles' market value can be influenced by many factors that don't directly affect Heidrick Struggles' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Heidrick Struggles' value and its price as these two are different measures arrived at by different means. Investors typically determine if Heidrick Struggles is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Heidrick Struggles' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Heidrick Struggles Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Heidrick Struggles's current stock value. Our valuation model uses many indicators to compare Heidrick Struggles value to that of its competitors to determine the firm's financial worth.
Heidrick Struggles International is rated # 3 in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about  7,603,589,916  of Current Valuation per Return On Equity. As of now, Heidrick Struggles' Return On Equity is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Heidrick Struggles' earnings, one of the primary drivers of an investment's value.

Heidrick Struggles' Earnings Breakdown by Geography

Heidrick Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Heidrick Struggles

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0836
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Heidrick Struggles

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
635.66 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Heidrick Current Valuation vs Competition

Heidrick Struggles International is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 11.43 Billion. Heidrick Struggles holds roughly 635.66 Million in current valuation claiming about 6% of equities under Industrials industry.

Heidrick Struggles Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Heidrick Struggles, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Heidrick Struggles will eventually generate negative long term returns. The profitability progress is the general direction of Heidrick Struggles' change in net profit over the period of time. It can combine multiple indicators of Heidrick Struggles, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income129 K122.5 K
Operating Income87.5 M91.9 M
Income Before Tax88.7 M93.1 M
Total Other Income Expense Net1.2 M1.2 M
Net Income54.4 M57.1 M
Income Tax Expense34.3 M36 M
Net Income Applicable To Common Shares71.5 M75.1 M
Net Income From Continuing Ops55.6 M58.4 M
Non Operating Income Net Other8.6 MM
Interest Income6.1 M6.4 M
Net Interest Income11.3 M11.9 M
Change To Netincome20.3 M21.3 M
Net Income Per Share 2.72  2.85 
Income Quality(0.49)(0.47)
Net Income Per E B T 0.61  0.95 

Heidrick Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Heidrick Struggles. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Heidrick Struggles position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Heidrick Struggles' important profitability drivers and their relationship over time.

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When determining whether Heidrick Struggles offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Heidrick Struggles' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Heidrick Struggles International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Heidrick Struggles International Stock:
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You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project Heidrick Struggles' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Heidrick Struggles at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Heidrick Struggles' income statement, its balance sheet, and the statement of cash flows.
Potential Heidrick Struggles investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Heidrick Struggles investors may work on each financial statement separately, they are all related. The changes in Heidrick Struggles's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Heidrick Struggles's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.