(HLI) Houlihan Lokey - Ratings and Ratios

Houlihan Lokey, Inc. (NYSE: HLI) is a global investment banking firm specializing in mergers and acquisitions (M&A), capital markets, financial restructuring, and valuation advisory services. Founded in 1972 and headquartered in Los Angeles, California, the firm operates through three core segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA). Houlihan Lokey serves a diverse client base, including corporations, financial sponsors, and government agencies, offering tailored solutions across industries.

The Corporate Finance segment provides comprehensive advisory services, including buy-side and sell-side M&A transactions, leveraged finance, equity and debt capital markets, and liability management. This segment also advises financial sponsors on transactions involving private equity, mezzanine debt, and other alternative capital solutions. The Financial Restructuring segment focuses on distressed situations, offering advisory services related to recapitalization, debt restructuring, and bankruptcy proceedings. This includes structuring and negotiating reorganization plans, conducting corporate viability assessments, and securing debtor-in-possession financing. The Financial and Valuation Advisory segment delivers independent valuations of assets, including companies, intellectual property, and illiquid securities, as well as fairness and solvency opinions for transactions.

As of the latest data, Houlihan Lokey trades on the NYSE under the ticker HLI, with a market capitalization of $10.6 billion. The stock has shown resilience, with a 20-day average volume of 466,608 shares and a last price of $155.51. The stock is trading near its 20-day SMA of $154.71 but below its 50-day and 200-day SMAs of $162.03 and $164.41, respectively, indicating near-term consolidation. The average true range (ATR) of $6.23 reflects moderate volatility.

From a fundamental perspective, Houlihan Lokeys trailing P/E of 28.88 and forward P/E of 23.31 suggest expectations of steady earnings growth. The P/B ratio of 5.23 indicates a premium valuation relative to book value, while the P/S ratio of 4.73 reflects strong revenue generation. The return on equity (RoE) of 17.25% highlights efficient capital utilization and profitability.

3-Month Forecast: Based on technical and fundamental analysis, HLI is expected to trade in a range of $145 to $165 over the next three months. The stocks near-term support is at $148.50 (SMA 20), with resistance at $162 (SMA 50). The ATR of $6.23 suggests average daily price movements of ±2.5%. Fundamentally, the firms strong RoE and growing demand for M&A and restructuring services position it for continued earnings growth, supported by a forward P/E of 23.31. However, elevated valuation multiples and potential market volatility could moderate near-term upside.