(HLI) Houlihan Lokey - Overview
Stock: M&A Advisory, Restructuring, Valuation, Capital Markets
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.34% |
| Yield on Cost 5y | 3.82% |
| Yield CAGR 5y | 9.98% |
| Payout Consistency | 100.0% |
| Payout Ratio | 24.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 27.5% |
| Relative Tail Risk | -2.99% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.22 |
| Alpha | -19.74 |
| Character TTM | |
|---|---|
| Beta | 0.968 |
| Beta Downside | 0.806 |
| Drawdowns 3y | |
|---|---|
| Max DD | 25.20% |
| CAGR/Max DD | 0.95 |
Description: HLI Houlihan Lokey January 03, 2026
Houlihan Lokey Inc. (NYSE:HLI) is a global investment-banking firm that operates through three distinct lines: Corporate Finance (CF), Financial Restructuring (FR) and Financial & Valuation Advisory (FVA). The CF unit advises public and private companies, as well as financial sponsors, on buy-side and sell-side M&A, debt and equity financings, and other corporate-finance transactions. The FR unit works with debtors, creditors and other stakeholders on recapitalizations, deleveraging, liability-management deals, DIP financing and dispute-resolution matters. The FVA unit delivers valuation, fairness, solvency and other financial opinions for corporations, sponsors and government agencies.
In FY 2023 Houlihan Lokey generated approximately $1.5 billion of revenue, with the CF segment contributing roughly 55 % of total fees, FR about 30 % and FVA the remaining 15 %. Adjusted EBITDA margin hovered near 30 %, reflecting the firm’s high-margin advisory model. The company’s market share in the U.S. middle-market M&A space is estimated at 12 %, positioning it as a leading specialist provider.
The firm’s performance is closely tied to macro drivers: (1) overall M&A activity, which rose 9 % YoY in 2023 as corporate cash balances remained strong; (2) the prevailing interest-rate environment, where higher rates increase restructuring demand and boost FR fees; and (3) credit-market conditions, with widening spreads prompting more liability-management and DIP-financing engagements.
For a deeper quantitative view of HLI’s valuation multiples and peer comparisons, you might explore the data on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income: 426.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.21 > 0.02 and ΔFCF/TA 5.04 > 1.0 |
| NWC/Revenue: 23.01% < 20% (prev 15.03%; Δ 7.98% < -1%) |
| CFO/TA 0.22 > 3% & CFO 817.3m > Net Income 426.5m |
| Net Debt (-490.7m) to EBITDA (657.3m): -0.75 < 3 |
| Current Ratio: 1.63 > 1.5 & < 3 |
| Outstanding Shares: last quarter (68.6m) vs 12m ago 0.25% < -2% |
| Gross Margin: 37.22% > 18% (prev 0.38%; Δ 3684 % > 0.5%) |
| Asset Turnover: 73.24% > 50% (prev 65.99%; Δ 7.25% > 0%) |
| Interest Coverage Ratio: 11.53 > 6 (EBITDA TTM 657.3m / Interest Expense TTM 52.5m) |
Altman Z'' 4.50
| A: 0.16 (Total Current Assets 1.52b - Total Current Liabilities 931.6m) / Total Assets 3.79b |
| B: 0.40 (Retained Earnings 1.52b / Total Assets 3.79b) |
| C: 0.17 (EBIT TTM 606.0m / Avg Total Assets 3.50b) |
| D: 0.96 (Book Value of Equity 1.49b / Total Liabilities 1.55b) |
| Altman-Z'' Score: 4.50 = AA |
Beneish M -3.03
| DSRI: 0.96 (Receivables 442.4m/379.3m, Revenue 2.57b/2.12b) |
| GMI: 1.02 (GM 37.22% / 38.05%) |
| AQI: 0.94 (AQ_t 0.47 / AQ_t-1 0.50) |
| SGI: 1.21 (Revenue 2.57b / 2.12b) |
| TATA: -0.10 (NI 426.5m - CFO 817.3m) / TA 3.79b) |
| Beneish M-Score: -3.03 (Cap -4..+1) = AA |
What is the price of HLI shares?
Over the past week, the price has changed by +2.76%, over one month by -6.52%, over three months by -3.45% and over the past year by -6.48%.
Is HLI a buy, sell or hold?
- StrongBuy: 2
- Buy: 2
- Hold: 4
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the HLI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 206.6 | 19.5% |
| Analysts Target Price | 206.6 | 19.5% |
| ValueRay Target Price | 204.6 | 18.3% |
HLI Fundamental Data Overview January 31, 2026
P/E Forward = 19.084
P/S = 4.4706
P/B = 5.1285
P/EG = 6.54
Revenue TTM = 2.57b USD
EBIT TTM = 606.0m USD
EBITDA TTM = 657.3m USD
Long Term Debt = 14.5m USD (from longTermDebt, last fiscal year)
Short Term Debt = 49.9m USD (from shortTermDebt, last fiscal year)
Debt = 432.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -490.7m USD (from netDebt column, last quarter)
Enterprise Value = 11.35b USD (11.84b + Debt 432.9m - CCE 923.6m)
Interest Coverage Ratio = 11.53 (Ebit TTM 606.0m / Interest Expense TTM 52.5m)
EV/FCF = 14.48x (Enterprise Value 11.35b / FCF TTM 783.6m)
FCF Yield = 6.91% (FCF TTM 783.6m / Enterprise Value 11.35b)
FCF Margin = 30.54% (FCF TTM 783.6m / Revenue TTM 2.57b)
Net Margin = 16.62% (Net Income TTM 426.5m / Revenue TTM 2.57b)
Gross Margin = 37.22% ((Revenue TTM 2.57b - Cost of Revenue TTM 1.61b) / Revenue TTM)
Gross Margin QoQ = 33.51% (prev 38.50%)
Tobins Q-Ratio = 2.99 (Enterprise Value 11.35b / Total Assets 3.79b)
Interest Expense / Debt = 1.08% (Interest Expense 4.68m / Debt 432.9m)
Taxrate = 30.16% (48.3m / 160.1m)
NOPAT = 423.2m (EBIT 606.0m * (1 - 30.16%))
Current Ratio = 1.63 (Total Current Assets 1.52b / Total Current Liabilities 931.6m)
Debt / Equity = 0.19 (Debt 432.9m / totalStockholderEquity, last quarter 2.25b)
Debt / EBITDA = -0.75 (Net Debt -490.7m / EBITDA 657.3m)
Debt / FCF = -0.63 (Net Debt -490.7m / FCF TTM 783.6m)
Total Stockholder Equity = 2.17b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.18% (Net Income 426.5m / Total Assets 3.79b)
RoE = 19.66% (Net Income TTM 426.5m / Total Stockholder Equity 2.17b)
RoCE = 27.74% (EBIT 606.0m / Capital Employed (Equity 2.17b + L.T.Debt 14.5m))
RoIC = 19.50% (NOPAT 423.2m / Invested Capital 2.17b)
WACC = 9.17% (E(11.84b)/V(12.27b) * Re(9.48%) + D(432.9m)/V(12.27b) * Rd(1.08%) * (1-Tc(0.30)))
Discount Rate = 9.48% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.52%
[DCF Debug] Terminal Value 77.55% ; FCFF base≈670.8m ; Y1≈827.5m ; Y5≈1.41b
Fair Price DCF = 362.9 (EV 19.23b - Net Debt -490.7m = Equity 19.72b / Shares 54.3m; r=9.17% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 80.83 | EPS CAGR: 11.27% | SUE: 0.39 | # QB: 0
Revenue Correlation: 33.27 | Revenue CAGR: -7.65% | SUE: 0.37 | # QB: 0
EPS next Quarter (2026-06-30): EPS=2.08 | Chg30d=+0.027 | Revisions Net=+3 | Analysts=9
EPS next Year (2027-03-31): EPS=8.77 | Chg30d=-0.091 | Revisions Net=+0 | Growth EPS=+11.1% | Growth Revenue=+12.9%