This firm's average rating is Hold from 5 analysts. Our investment recommendation module provides unbiased trade recommendations that can be used to complement current
average analyst sentiment on Houlihan Lokey. Our investment recommendation engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. The company has Net Profit Margin of
15.86 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large.
The successful prediction of Houlihan Lokey
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Houlihan Lokey, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Houlihan Lokey based on Houlihan Lokey hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Houlihan Lokey's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Houlihan Lokey's related companies.
Use Technical Analysis to project Houlihan expected Price
Houlihan Lokey technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Houlihan Lokey technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Houlihan Lokey trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Houlihan Lokey Gross Profit
Houlihan Lokey Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Houlihan Lokey previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Houlihan Lokey Gross Profit growth over the last 10 years. Please check Houlihan Lokey's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Houlihan Lokey
The small decline in market price for the last few months may raise some interest from stockholders. The stock closed today at a share price of
55.54 on very low momentum in trading volume. The company executives did not add much value to Houlihan Lokey investors in
June. However, diversifying your holdings with Houlihan Lokey or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.97. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors.
| 2017 | 2018 | 2019 | 2020 (projected) |
Receivables | 77.26 M | 70.83 M | 80.91 M | 70.01 M | Inventories | 45.86 M | 71.89 M | 39.82 M | 41.86 M |
Deferred Revenue Breakdown
Houlihan Lokey Deferred Revenue is increasing over the last several years with slightly volatile swings. Deferred Revenue is estimated to finish at about 28.9
M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Houlihan Lokey Deferred Revenue is most likely to increase significantly in the upcoming years. The last year's value of Deferred Revenue was reported at 26.78 Million
| 2010 | 5.38 Million |
| 2014 | 3.06 Million |
| 2015 | 5.55 Million |
| 2016 | 3.72 Million |
| 2017 | 3.62 Million |
| 2018 | 27.81 Million |
| 2019 | 26.78 Million |
| 2020 | 28.89 Million |
Houlihan Lokey has 93 percent chance to finish above $55 in August
The semi variance is down to 5.2 as of today. Houlihan Lokey currently demonstrates below-verage downside deviation. It has Information Ratio of -0.07 and Jensen Alpha of -0.09. However, we do advice investors to further question Houlihan Lokey expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Conclusion on Houlihan Lokey
While many other companies in the capital markets industry are either recovering or due for a correction, Houlihan may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither buy new shares of Houlihan nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Houlihan Lokey.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Houlihan Lokey. Please refer to our
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