Robert Half Inc. (RHI)
Valuation Overview•Is Robert Half Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 43/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
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Verdict: Average quality business weighed down by significant growth concerns.
Wall Street sentiment is generally neutral with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
RHI demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($43M) and minimal debt risk.
The company is facing top-line contraction (-9.4% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (0.2%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.3B | -7.2% | -9.4% | +1.0% | +0.5% | |
| EBITDA | -$44.0M | — | -50.2% | — | — | |
| Net Income | $26.3M | -47.1% | -41.3% | — | -9.4% | |
| EPS (Diluted) | $0.26 | -45.5% | -39.6% | -13.2% | -6.8% | |
| Free Cash Flow | $101.5M | -24.7% | -24.6% | -13.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 36.8% | 38.8% | 40.2% | 40.6% |
| Operating Margin | 0.2% | 4.3% | 7.6% | 8.4% |
| Net Margin | 2.2% | 4.4% | 6.3% | 6.5% |
| FCF Margin | 4.1% | 6.8% | 7.5% | 8.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $0.26 | $0.26 | +0.9% | ||
| Q2'26 | $0.14 | $0.14 | +0.0% | ||
| Q1'26 | $0.30 | $0.32 | +6.7% | ||
| Q4'25 | $0.43 | $0.43 | +0.0% | ||
| Q3'25 | $0.40 | $0.41 | +2.5% | ||
| Q2'25 | $0.36 | $0.17 | -52.8% | ||
| Q1'25 | $0.55 | $0.53 | -3.6% | ||
| Q4'24 | $0.62 | $0.64 | +3.2% |
Total return is +17.5% (1Y), outperforming the benchmark by +1.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +43.1% | +30.7% | — |
| 1Y | +17.5% | +1.8% | +7.0% |
| 3YCAGR | -15.8% | -36.4% | +9.1% |
| 5YCAGR | -14.2% | -25.5% | +10.0% |
| 10YCAGR | +3.6% | -10.0% | — |
The S&P 500 is at 31.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Robert Half Inc. (RHI) valuation, health, and returns.
Robert Half Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -62.6% downside from DCF intrinsic value of $13.98)
Robert Half Inc. has multiple valuation anchors: DCF Intrinsic Value: $13.98 | Peer Relative Fair Value: $21.05 | Wall Street Analyst Target: $38.00 (implying +1.7% upside). A convergence of these signals offers higher conviction.
Robert Half Inc. displays fair financial health with a composite quality score of 43/100, supported by a Altman Z-Score of 3.6 (safe zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 4.6%.
Robert Half Inc. pays a 6.4% dividend yield, covered by a 179% payout ratio with 21 years of growth, supplemented by a 2.4% buyback yield.
Robert Half Inc.'s current growth trajectory is Accelerating. The company achieved -7.2% 1Y revenue growth and -45.5% 1Y EPS growth, compared to its 3Y revenue CAGR of -9.4%.
Wall Street consensus is Hold based on 25 analysts, beating EPS expectations in 50% of recent quarters with a 1-quarter streak. The consensus price target represents a +1.7% change from current levels.
Investment risks for Robert Half Inc. include: -37.7% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.34x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.