Aug. 29 at 3:43 PM
$RHI — SELL 🔴
Valuation is stretched with 39.1x trailing P/E, 23.0x forward P/E, and 73.1x EV/EBITDA while EV/Revenue is only 0.8x and Price/Sales is 0.9x.
Profitability is weak: operating margin is -4.7%, EBITDA margin is 1.16%, and net margin is 2.17%.
Cash generation is not enough to offset the multiple, with operating cash flow of
$256.3M and levered free cash flow of
$113.6M.
The balance sheet is not the issue at 19.9% total debt/equity and net debt/EBITDA of -1.4x, but the stock still screens expensive versus a mean target of
$35 and a low target of
$20.
Full research: https://lf0.com/research/robert-half-stock-analysis-rhi/?utm_source=stocktwits&utm_medium=social&utm_campaign=research_distribution
