Robert Half (RHI) AI Stock Analysis

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Robert Half

(NYSE:RHI)

Rating:62Neutral

Price Target:―

Robert Half's overall stock score reflects a stable financial base and attractive dividend yield, but is challenged by declining revenues and profitability. Technical indicators suggest negative momentum, and the recent earnings call underscores the need for strategic adjustments amid economic uncertainty.

Positive Factors

Cost Management

The company announced a restructuring plan to reduce corporate overhead that should lower costs by ~$20M/quarter.

Growth Prospects

Robert Half International is upgraded to Buy from Hold, reflecting confidence in its future growth prospects.

Technology Expansion

One of the best-operated companies in the staffing space, expanding its technology offerings to help mitigate some cyclical aspects.

Negative Factors

Economic Conditions

Economic uncertainty has led to a deterioration in client hiring activity, affecting staffing revenues.

Financial Performance

Robert Half announced EPS below the company’s guidance, indicating weaker than expected financial performance.

Revenue Guidance

Second-quarter guidance also came in well below expectations for both revenue and earnings.

Robert Half (RHI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.92B

Dividend Yield4.61%

Average Volume (3M)1.77M

Price to Earnings (P/E)24.0

Beta (1Y)1.03

Revenue Growth-7.81%

EPS Growth-40.22%

CountryUS

Employees14,700

SectorIndustrials

Sector Strength90

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)0.17

Shares Outstanding102,163,765

10 Day Avg. Volume1,056,420

30 Day Avg. Volume1,771,505

Financial Highlights & Ratios

PEG Ratio-1.22

Price to Book (P/B)3.44

Price to Sales (P/S)0.00

P/FCF Ratio14.77

Enterprise Value/Market Cap0.91

Enterprise Value/Revenue0.19

Enterprise Value/Gross Profit2.06

Enterprise Value/Ebitda3.21

Forecast

1Y Price Target

$47.17

Price Target Upside3.49% Upside

Rating ConsensusHold

Number of Analyst Covering7

Robert Half Business Overview & Revenue Model

Company DescriptionRobert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services. It places temporary services for accounting, finance, and bookkeeping; temporary and full-time office and administrative personnel consisting of executive and administrative assistants, receptionists, and customer service representatives; full-time accounting, financial, tax, and accounting operations personnel; and information technology contract professionals and full-time employees in the areas of platform systems integration to end-user technical and desktop support, including specialists in application development, networking and cloud, systems integration and deployment, database design and administration, and security and business continuity. The company also offers temporary and full-time employees in attorney, paralegal, legal administrative, and legal secretarial positions; and senior-level project professionals in the accounting and finance fields for financial systems conversions, expansion into new markets, business process re-engineering, business systems performance improvement, and post-merger financial consolidation. It is involved in serving professionals in the areas of creative, design, marketing, advertising, and public relations; and placing various positions, such as creative directors, graphics designers, web designers, media buyers, front end developers, copywriters, digital marketing managers, marketing analytics specialists, brand managers, and public relations specialists. The company provides internal audit, technology consulting, risk and compliance consulting, and business performance services. It serves clients and employment candidates. Robert Half International Inc. was founded in 1948 and is headquartered in Menlo Park, California.

How the Company Makes MoneyRobert Half generates revenue primarily through its staffing services, which involve placing temporary and permanent employees in various industries. The company earns money by charging client companies a fee for each successful placement, which is typically a percentage of the employee's salary or hourly wage. Additionally, Robert Half provides consulting and project-based solutions, further diversifying its revenue streams. Key factors contributing to its earnings include strong client relationships, a large pool of qualified candidates, and its extensive global network. Partnerships with Fortune 500 companies and a reputation for delivering high-quality staffing solutions also play a significant role in its financial success.

Robert Half Financial Statement Overview

Summary

Robert Half demonstrates solid financial management, with a strong balance sheet and effective cash flow generation. However, declining revenue and profit margins in recent periods pose challenges to growth. The company remains financially stable, but strategic actions may be needed to reinvigorate growth and profitability in a competitive industry.

Income Statement

Positive

The company shows a declining revenue trend, with total revenue dropping from previous periods. Gross profit margin remains healthy at 38.3% for TTM, yet the net profit margin has decreased to 3.6% from higher levels in prior years. The EBIT and EBITDA margins are also lower, reflecting reduced operational efficiency. These factors suggest moderate performance in profitability and growth.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.18, indicating low leverage. The equity ratio is strong at 48.7%, showcasing a robust equity base relative to total assets. However, the return on equity (ROE) has decreased to 15.6% in the TTM, suggesting reduced profitability on equity.

Cash Flow

Positive

The cash flow statement highlights a strong operating cash flow to net income ratio of 1.79, indicating efficient cash generation from operations. Free cash flow remains positive, although the free cash flow growth rate is negative due to lower profitability. The company maintains a solid cash flow position despite some fluctuations.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.67B	5.80B	6.39B	7.24B	6.46B	5.11B
	Gross Profit
2.17B	2.25B	2.58B	3.09B	2.70B	2.01B
	EBIT
239.76M	242.69M	467.47M	1.06B	681.43M	270.16M
	EBITDA
327.90M	330.79M	563.56M	1.02B	796.96M	408.85M
	Net Income Common Stockholders
205.25M	251.60M	411.15M	657.92M	598.63M	306.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
342.47M	537.58M	731.74M	658.63M	619.00M	574.43M
	Total Assets
2.70B	2.85B	3.01B	2.96B	2.95B	2.56B
	Total Debt
242.63M	233.52M	241.90M	237.85M	265.08M	302.71M
	Net Debt
-99.84M	-304.06M	-489.84M	-420.77M	-353.92M	-271.71M
	Total Liabilities
1.38B	1.48B	1.42B	1.40B	1.57B	1.35B
	Stockholders Equity
1.31B	1.38B	1.59B	1.57B	1.38B	1.21B
Cash Flow		Free Cash Flow
310.11M	354.15M	591.01M	622.63M	566.52M	563.15M
	Operating Cash Flow
367.04M	410.47M	636.88M	683.75M	603.14M	596.53M
	Investing Cash Flow
-97.79M	-87.12M	-112.25M	-116.62M	-87.61M	9.46M
	Financing Cash Flow
-464.28M	-496.44M	-460.54M	-509.18M	-458.59M	-315.32M

Robert Half Technical Analysis

Technical Analysis Sentiment

Negative

Last Price45.58

Price Trends

50DMA

48.91

Negative

100DMA

56.10

Negative

200DMA

61.49

Negative

Market Momentum

MACD

-0.40

Negative

RSI

43.90

Neutral

STOCH

65.26

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RHI, the sentiment is Negative. The current price of 45.58 is below the 20-day moving average (MA) of 45.61, below the 50-day MA of 48.91, and below the 200-day MA of 61.49, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 65.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RHI.

Robert Half Risk Analysis

Robert Half disclosed 29 risk factors in its most recent earnings report. Robert Half reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 2 New Risks

The Company could be subject to changes in tax rates, adoption of new U.S. or international tax legislation or tax audits that could result in additional income tax liabilities. Q4, 2024

Failure to meet, and increasing scrutiny of, and evolving expectations for, sustainability and ESG commitments and initiatives could harm the Companys reputation, or otherwise adversely impact our business, financial condition or results of operations. Q4, 2024

Robert Half Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	77 Outperform	$3.55B	14.77	13.92%	2.30%	-3.27%	62.57%
KFRC	65 Neutral	$781.71M	16.61	31.45%	3.66%	-6.38%	-12.32%
Sector *	64 Neutral	$4.46B	11.94	5.17%	249.36%	4.00%	-12.35%
HSII	64 Neutral	$890.61M	126.58	1.71%	1.39%	6.17%	-85.16%
RHI	62 Neutral	$4.92B	24.05	14.49%	4.61%	-7.81%	-40.22%
MAN	57 Neutral	$2.04B	19.07	5.19%	7.02%	-5.52%	133.51%
NSP	53 Neutral	$2.69B	43.20	48.65%	3.38%	1.90%	-60.33%

* Industrials Sector Average

Performance Comparison

RHI

Robert Half

45.58

-19.62

-30.09%

HSII

Heidrick & Struggles

42.86

7.66

21.76%

NSP

Insperity

67.03

-33.29

-33.18%

KFRC

Kforce

40.61

-19.74

-32.71%

KFY

Korn Ferry

67.85

3.77

5.88%

MAN

ManpowerGroup

42.72

-28.11

-39.69%

Robert Half Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: -1.87%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Negative

The earnings call highlighted Protiviti's revenue growth and strategic cost reductions, showing some optimism about future operations. However, these positive aspects were overshadowed by significant revenue and income declines, as well as challenges related to client caution and economic uncertainty.

Q1-2025 Updates

Positive Updates

Protiviti Revenue Growth

Protiviti global revenues in the first quarter were $477 million, showing a 5% increase year-over-year on an adjusted basis. U.S. Protiviti revenues were up 4%, while non-U.S. Protiviti revenues were up 8% compared to one year ago.

Dividend Growth

In March, Robert Half distributed a $0.59 per share cash dividend, an 11.3% increase from the prior year, with the dividend growing an average of 11.6% annually since its inception in 2004.

Cost Reduction and Efficiency Gains

Robert Half implemented cost actions expected to result in annual savings of $80 million, with $18 million recognized in Q2 and $20 million in subsequent quarters.

Technology and AI Adoption

Notable early traction with AI to enhance recruitment efficiency, leading to fewer calls needed to secure client visits and improved conversion rates.

Negative Updates

Decline in Global Revenues

Global enterprise revenues for the first quarter were $1.352 billion, down 8% from the previous year on a reported basis and down 6% on an adjusted basis.

Significant Drop in Net Income

Net income per share declined to $0.17 in the first quarter, compared to $0.61 in the previous year's first quarter.

Talent Solutions Revenue Decrease

First-quarter Talent Solutions revenues declined by 11% year-over-year on an adjusted basis, with U.S. revenues down 10% and non-U.S. revenues down 15%.

Client and Job Seeker Caution

Heightened economic uncertainty led to elongated decision cycles, subdued hiring activity, and new project starts.

Cash Flow Usage

Cash flow used in operations during the quarter was $59 million, impacted by seasonal factors such as bonus payments and SaaS subscription renewals.

Company Guidance

During the Robert Half First Quarter 2025 Conference Call, several metrics were highlighted to provide guidance on the company's performance and outlook. Global enterprise revenues in the first quarter were reported at $1.352 billion, reflecting an 8% decrease from the previous year on a reported basis and a 6% decrease on an adjusted basis. The company's net income per share stood at $0.17, a significant drop from $0.61 in the prior year, influenced by one-time charges of $0.13 per share due to cost actions aimed at reducing administrative expenses. Cash flow used in operations was $59 million, with a cash dividend of $0.59 per share distributed in March. Robert Half repurchased approximately 650,000 shares for $39 million, with 6.6 million shares available for further repurchase. The first quarter saw a return on invested capital of 5%. Guidance for the second quarter includes expected revenues ranging from $1.31 billion to $1.41 billion, with income per share forecasted between $0.36 and $0.46. Adjusted revenue growth expectations are down 10% to 14% for Talent Solutions and up 1% to 4% for Protiviti. Adjusted gross margin percentages for contract talent are anticipated to be between 38% and 40%, with Protiviti margins expected to range from 21% to 24%.

Robert Half Corporate Events

Executive/Board ChangesShareholder Meetings

Robert Half Stockholders Approve Key Proposals at Meeting

Positive

May 15, 2025

On May 14, 2025, Robert Half held its annual meeting of stockholders, where three key matters were voted on: the election of nine directors, the approval of executive compensation on an advisory basis, and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. The election of directors saw varying levels of support, with all nominees receiving a majority of votes. The executive compensation proposal was approved with a significant majority, and the appointment of PricewaterhouseCoopers LLP was ratified with overwhelming support, indicating strong stockholder confidence in the company’s leadership and financial oversight.

The most recent analyst rating on (RHI) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Robert Half stock, see the RHI Stock Forecast page.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.