(HLI) Houlihan Lokey - Ratings and Ratios
Merger, Acquisition, Restructuring, Valuation, Advisory Services
HLI EPS (Earnings per Share)
HLI Revenue
Description: HLI Houlihan Lokey
Houlihan Lokey Inc (NYSE:HLI) is a leading investment banking firm that provides a range of financial services, including merger and acquisition advisory, capital market transactions, financial restructuring, and valuation advisory. The companys diversified business model is segmented into three main areas: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.
The Corporate Finance segment is a key driver of the companys revenue, providing advisory services on M&A transactions, debt and equity financings, and other corporate finance transactions. The Financial Restructuring segment advises debtors, creditors, and other stakeholders on recapitalization and deleveraging transactions, while the Financial and Valuation Advisory segment provides valuation services, fairness opinions, and dispute resolution services.
From a financial perspective, Houlihan Lokey has demonstrated strong profitability, with a Return on Equity (ROE) of 19.88%. The companys revenue growth is driven by its ability to attract and retain top talent, as well as its diversified business model. Key Performance Indicators (KPIs) to monitor include revenue per employee, deal count, and average deal size. With a market capitalization of $13.8 billion, Houlihan Lokey is a significant player in the investment banking industry.
To evaluate the companys stock performance, its essential to analyze its valuation multiples. The current Price-to-Earnings (P/E) ratio is 33.92, while the forward P/E ratio is 23.58, indicating a potential decline in earnings growth. Investors should also monitor the companys revenue and earnings growth, as well as its ability to maintain a strong balance sheet and generate cash flows.
From a technical analysis perspective, the stock has shown a strong uptrend, with the current price above its 20-day, 50-day, and 200-day moving averages. The Average True Range (ATR) indicates a moderate level of volatility, with a current ATR of 4.23, representing 2.15% of the stocks current price. Investors should monitor the stocks support and resistance levels, with key support levels at $182.1, $179.3, and $175.7.
HLI Stock Overview
| Market Cap in USD | 13,662m |
| Sub-Industry | Investment Banking & Brokerage |
| IPO / Inception | 2015-08-13 |
HLI Stock Ratings
| Growth Rating | 79.4% |
| Fundamental | 88.9% |
| Dividend Rating | 71.3% |
| Return 12m vs S&P 500 | -0.36% |
| Analyst Rating | 3.44 of 5 |
HLI Dividends
| Dividend Yield 12m | 1.22% |
| Yield on Cost 5y | 4.00% |
| Annual Growth 5y | 15.27% |
| Payout Consistency | 100.0% |
| Payout Ratio | 32.5% |
HLI Growth Ratios
| Growth Correlation 3m | 45.1% |
| Growth Correlation 12m | 54.2% |
| Growth Correlation 5y | 91.4% |
| CAGR 5y | 36.44% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.45 |
| CAGR/Mean DD 3y (Pain Ratio) | 7.22 |
| Sharpe Ratio 12m | 0.09 |
| Alpha | 1.77 |
| Beta | 0.879 |
| Volatility | 26.61% |
| Current Volume | 310.5k |
| Average Volume 20d | 318.6k |
| Stop Loss | 185.3 (-3.2%) |
| Signal | 0.41 |
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income (408.3m TTM) > 0 and > 6% of Revenue (6% = 148.9m TTM) |
| FCFTA 0.21 (>2.0%) and ΔFCFTA 9.62pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 17.96% (prev 10.87%; Δ 7.09pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.22 (>3.0%) and CFO 781.5m > Net Income 408.3m (YES >=105%, WARN >=100%) |
| Net Debt (-353.4m) to EBITDA (623.2m) ratio: -0.57 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.56 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (68.9m) change vs 12m ago 0.56% (target <= -2.0% for YES) |
| Gross Margin 38.50% (prev 37.57%; Δ 0.93pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 76.81% (prev 68.37%; Δ 8.43pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 12.71 (EBITDA TTM 623.2m / Interest Expense TTM 45.2m) >= 6 (WARN >= 3) |
Altman Z'' 4.49
| (A) 0.13 = (Total Current Assets 1.24b - Total Current Liabilities 797.6m) / Total Assets 3.52b |
| (B) 0.41 = Retained Earnings (Balance) 1.45b / Total Assets 3.52b |
| (C) 0.18 = EBIT TTM 574.7m / Avg Total Assets 3.23b |
| (D) 1.07 = Book Value of Equity 1.43b / Total Liabilities 1.34b |
| Total Rating: 4.49 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 88.90
| 1. Piotroski 8.0pt = 3.0 |
| 2. FCF Yield 5.56% = 2.78 |
| 3. FCF Margin 29.80% = 7.45 |
| 4. Debt/Equity 0.20 = 2.48 |
| 5. Debt/Ebitda -0.57 = 2.50 |
| 6. ROIC - WACC (= 18.26)% = 12.50 |
| 7. RoE 19.47% = 1.62 |
| 8. Rev. Trend 86.40% = 6.48 |
| 9. EPS Trend 1.71% = 0.09 |
What is the price of HLI shares?
Over the past week, the price has changed by -2.81%, over one month by -5.72%, over three months by -1.36% and over the past year by +14.45%.
Is Houlihan Lokey a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HLI is around 221.30 USD . This means that HLI is currently undervalued and has a potential upside of +15.63% (Margin of Safety).
Is HLI a buy, sell or hold?
- Strong Buy: 2
- Buy: 2
- Hold: 4
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the HLI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 213.2 | 11.4% |
| Analysts Target Price | 213.2 | 11.4% |
| ValueRay Target Price | 247.8 | 29.5% |
Last update: 2025-10-09 02:25
HLI Fundamental Data Overview
P/E Trailing = 32.6571
P/E Forward = 24.8139
P/S = 5.507
P/B = 6.5003
P/EG = 6.54
Beta = 0.879
Revenue TTM = 2.48b USD
EBIT TTM = 574.7m USD
EBITDA TTM = 623.2m USD
Long Term Debt = 14.5m USD (from longTermDebt, last fiscal year)
Short Term Debt = unknown (none)
Debt = 440.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -353.4m USD (from netDebt column, last quarter)
Enterprise Value = 13.31b USD (13.66b + Debt 440.4m - CCE 793.8m)
Interest Coverage Ratio = 12.71 (Ebit TTM 574.7m / Interest Expense TTM 45.2m)
FCF Yield = 5.56% (FCF TTM 739.5m / Enterprise Value 13.31b)
FCF Margin = 29.80% (FCF TTM 739.5m / Revenue TTM 2.48b)
Net Margin = 16.46% (Net Income TTM 408.3m / Revenue TTM 2.48b)
Gross Margin = 38.50% ((Revenue TTM 2.48b - Cost of Revenue TTM 1.53b) / Revenue TTM)
Gross Margin QoQ = 38.50% (prev 38.50%)
Tobins Q-Ratio = 3.78 (Enterprise Value 13.31b / Total Assets 3.52b)
Interest Expense / Debt = 1.06% (Interest Expense 4.68m / Debt 440.4m)
Taxrate = 0.53% (517.0k / 98.0m)
NOPAT = 571.7m (EBIT 574.7m * (1 - 0.53%))
Current Ratio = 1.56 (Total Current Assets 1.24b / Total Current Liabilities 797.6m)
Debt / Equity = 0.20 (Debt 440.4m / totalStockholderEquity, last quarter 2.18b)
Debt / EBITDA = -0.57 (Net Debt -353.4m / EBITDA 623.2m)
Debt / FCF = -0.48 (Net Debt -353.4m / FCF TTM 739.5m)
Total Stockholder Equity = 2.10b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.61% (Net Income 408.3m / Total Assets 3.52b)
RoE = 19.47% (Net Income TTM 408.3m / Total Stockholder Equity 2.10b)
RoCE = 27.21% (EBIT 574.7m / Capital Employed (Equity 2.10b + L.T.Debt 14.5m))
RoIC = 27.26% (NOPAT 571.7m / Invested Capital 2.10b)
WACC = 8.99% (E(13.66b)/V(14.10b) * Re(9.25%) + D(440.4m)/V(14.10b) * Rd(1.06%) * (1-Tc(0.01)))
Discount Rate = 9.25% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.74%
[DCF Debug] Terminal Value 75.26% ; FCFE base≈577.9m ; Y1≈624.8m ; Y5≈774.6m
Fair Price DCF = 200.5 (DCF Value 10.90b / Shares Outstanding 54.4m; 5y FCF grow 9.16% → 3.0% )
EPS Correlation: 1.71 | EPS CAGR: -57.24% | SUE: -4.0 | # QB: 0
Revenue Correlation: 86.40 | Revenue CAGR: 8.03% | SUE: 1.35 | # QB: 4
Additional Sources for HLI Stock
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Fund Manager Positions: Dataroma | Stockcircle