HLI Stock Analysis: Houlihan Lokey | NYSE
Capital Markets | NYSE, USA | Market Cap: 8.829m USD | 12M Return: -34.4% | US4415931009 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 111M
EPS Trend: 93.5%
Qual. Beats: -2
Rev. Trend: 96.1%
Qual. Beats: -2
Warnings
Tailwinds
Seasonality 11.1 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Houlihan Lokey, Inc. (NYSE: HLI) is a U.S.-based investment banking firm headquartered in Los Angeles, California, founded in 1972 and listed on the NYSE since August 2015. The company operates across three core segments: Corporate Finance (M&A advisory and debt and equity financings), Financial Restructuring (advice to debtors, creditors, and other parties on recapitalizations, reorganizations, and liability management), and Financial and Valuation Advisory (valuation, fairness and solvency opinions, transaction accounting, and related services). It serves corporations, financial sponsors, and government agencies on a worldwide basis.
As a participant in the Investment Banking & Brokerage sub-industry within the Financials sector, Houlihan Lokey competes in a market traditionally dominated by bulge-bracket banks, though pure-play advisory firms like HLI differentiate through sector-focused practices and a fee-based revenue model rather than balance sheet-driven activities such as trading or lending. Its recurring valuation and financial advisory work provides a more stable counterbalance to the more cyclical, deal-driven revenues of its M&A and restructuring practices.
- M&A deal rebound lifts Corporate Finance advisory revenue
- Distressed debt cycle expansion fuels Restructuring segment growth
- Capital return program continues with steady dividends and buybacks
| Net Income: 406.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -7.98 > 1.0 |
| NWC/Revenue: 12.29% < 20% (prev 17.96%; Δ -5.67% < -1%) |
| CFO/TA 0.13 > 3% & CFO 499.8m > Net Income 406.2m |
| Net Debt (-304.0m) to EBITDA (594.4m): -0.51 < 3 |
| Current Ratio: 1.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (67.6m) vs 12m ago -1.87% < -2% |
| Gross Margin: 50.79% > 18% (prev 38.50%; Δ 12.29% > 0.5%) |
| Asset Turnover: 69.75% > 50% (prev 70.53%; Δ -0.78% > 0%) |
| Interest Coverage Ratio: 58.43 > 6 (EBIT TTM 559.8m / Interest Expense TTM 9.58m) |
| A: 0.08 (Total Current Assets 1.02b - Total Current Liabilities 711.0m) / Total Assets 3.72b |
| B: 0.45 (Retained Earnings 1.67b / Total Assets 3.72b) |
| C: 0.15 (EBIT TTM 559.8m / Avg Total Assets 3.62b) |
| D: 1.67 (Book Value of Equity 2.25b / Total Liabilities 1.35b) |
| Altman-Z'' = 4.80 = AA |
| DSRI: 0.55 (Receivables 224.0m/401.5m, Revenue 2.52b/2.48b) |
| GMI: 0.76 (GM 38.50% / 50.79%) |
| AQI: 1.15 (AQ_t 0.58 / AQ_t-1 0.50) |
| SGI: 1.02 (Revenue 2.52b / 2.48b) |
| TATA: -0.03 (NI 406.2m - CFO 499.8m) / TA 3.72b) |
| Beneish M = -3.52 (Cap -4..+1) = AAA |
As of October 08, 2026, the stock is trading at USD 125.22 with a total of 939,857 shares traded. Over the past week, the price has changed by -0.89%, over one month by -7.51%, over three months by -9.52% and over the past year by -34.43%.
Current recommended Stop Loss: 119.30 (which is 4.7% or 1.4 ATR below the current price).
Houlihan Lokey has received a consensus analysts rating of 3.44. Therefore, it is recommended to hold HLI.
- StrongBuy: 2
- Buy: 2
- Hold: 4
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 153.5 | 22.6% |
P/E Trailing = 21.4136
P/E Forward = 15.015
P/S = 3.4989
P/B = 4.0271
P/EG = 6.54
Revenue TTM = 2.52b USD
EBIT TTM = 559.8m USD
EBITDA TTM = 594.4m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 493.0m USD (from shortLongTermDebtTotal, last quarter) (leases 493.0m already included)
Net Debt = -304.0m USD (calculated: Debt 493.0m - CCE 797.0m)
Enterprise Value = 8.53b USD (8.83b + Debt 493.0m - CCE 797.0m)
Interest Coverage Ratio = 58.43 (Ebit TTM 559.8m / Interest Expense TTM 9.58m)
EV/FCF = 17.59x (Enterprise Value 8.53b / FCF TTM 484.6m)
FCF Yield = 5.68% (FCF TTM 484.6m / Enterprise Value 8.53b)
FCF Margin = 19.21% (FCF TTM 484.6m / Revenue TTM 2.52b)
Net Margin = 16.10% (Net Income TTM 406.2m / Revenue TTM 2.52b)
Gross Margin = 50.79% ((Revenue TTM 2.52b - Cost of Revenue TTM 1.24b) / Revenue TTM)
Gross Margin QoQ = 30.72% (prev none%)
Tobins Q-Ratio = 2.29 (Enterprise Value 8.53b / Total Assets 3.72b)
Interest Expense / Debt = 1.94% (Interest Expense 9.58m / Debt 493.0m)
Taxrate = 26.46% (145.6m / 550.2m)
NOPAT = 411.7m (EBIT 559.8m * (1 - 26.46%))
Current Ratio = 1.44 (Total Current Assets 1.02b / Total Current Liabilities 711.0m)
Debt / Equity = 0.22 (Debt 493.0m / totalStockholderEquity, last quarter 2.25b)
Debt / EBITDA = -0.51 (Net Debt -304.0m / EBITDA 594.4m)
Debt / FCF = -0.63 (Net Debt -304.0m / FCF TTM 484.6m)
Total Stockholder Equity = 2.28b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.23% (Net Income 406.2m / Total Assets 3.72b)
RoE = 17.78% (Net Income TTM 406.2m / Total Stockholder Equity 2.28b)
RoCE = 18.62% (EBIT 559.8m / Capital Employed (Total Assets 3.72b - Current Liab 711.0m))
RoIC = 14.30% (NOPAT 411.7m / Invested Capital 2.88b)
WACC = 9.32% (E(8.83b)/V(9.32b) * Re(9.76%) + D(493.0m)/V(9.32b) * Rd(1.94%) * (1-Tc(0.26)))
Discount Rate = 9.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -50.03 | Cagr: -0.58%
[DCF] Terminal Value 69.55% ; FCFF base≈586.6m ; Y1≈514.4m ; Y5≈415.6m
[DCF] Fair Price = 111.7 (EV 5.75b - Net Debt -304.0m = Equity 6.06b / Shares 54.2m; r=9.32% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 93.45 | EPS CAGR: 27.59% | SUE: -1.53 | # QB: -2
Revenue Correlation: 96.12 | Revenue CAGR: 16.65% | SUE: -3.27 | # QB: -2
EPS current Quarter (2026-09-30): EPS=1.65 | Chg30d=+0.01% | Revisions=-75% | Analysts=10
EPS next Quarter (2026-12-31): EPS=1.96 | Chg30d=+0.17% | Revisions=-75% | Analysts=9
EPS current Year (2027-03-31): EPS=7.08 | Chg30d=+1.28% | Revisions=-77% | GrowthEPS=-6.4% | GrowthRev=+0.6%
EPS next Year (2028-03-31): EPS=8.79 | Chg30d=-0.49% | Revisions=-75% | GrowthEPS=+24.2% | GrowthRev=+19.2%
[Analyst] Revisions Ratio: -92% (up=0, down=37)