This firm's average rating is Buy from 2 analysts.
Our trade recommendations module complements current
analysts and expert consensus on Heidrick Struggles International. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
About
94.0% of the company shares are owned by institutional investors. Heidrick Struggles has price-to-book (P/B) ratio of 1.44. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity last dividend was issued on the 3rd of November 2022.
The successful prediction of Heidrick Struggles
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 Heidrick Struggles International, 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 Heidrick Struggles based on Heidrick Struggles hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Heidrick Struggles's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Heidrick Struggles's related companies.
Use Technical Analysis to project Heidrick expected Price
Heidrick Struggles 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 Heidrick Struggles technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Heidrick Struggles 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...Heidrick Struggles Gross Profit
Heidrick Struggles Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Heidrick Struggles 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 Heidrick Struggles Gross Profit growth over the last 10 years. Please check Heidrick Struggles'
gross profit and other
fundamental indicators for more details.
Breaking down the case for Heidrick Struggles
The company reported the previous year's revenue of 1.01
B. Net Income was 72.57
M with profit before overhead, payroll, taxes, and interest of 232.81
M.
| 2020 | 2021 | 2022 | 2023 (projected) |
Accounts Payable | 8.8 M | 20.37 M | 18.34 M | 19.78 M | Receivables | 88.12 M | 133.75 M | 120.38 M | 102.67 M |
Deferred Revenue Breakdown
Heidrick Struggles Deferred Revenue is increasing with slightly volatile movements from year to year. Deferred Revenue is predicted to flatten to about 51.6
M. 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. Heidrick Struggles Deferred Revenue is increasing as compared to previous years. The last year's value of Deferred Revenue was reported at 59.11 Million
| 2016 | 28.37 Million |
| 2017 | 31.27 Million |
| 2018 | 40.67 Million |
| 2019 | 41.27 Million |
| 2020 | 38.05 Million |
| 2021 | 51.4 Million |
| 2022 | 59.11 Million |
| 2023 | 51.63 Million |
Our Heidrick analysis signifies possible reversion in March
Heidrick Struggles recent standard deviation hikes over 1.99. Heidrick Struggles International currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.13. However, we advise investors to further question Heidrick Struggles International expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Heidrick Struggles' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Heidrick Struggles' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Bottom Line On Heidrick Struggles
Although some other firms within the staffing & employment services industry are still a little expensive, even after the recent corrections, Heidrick Struggles may offer a potential longer-term growth to traders. To summarize, as of the 27th of February 2023, we believe that at this point, Heidrick Struggles is
undervalued with
low probability of distress within the next 2 years. Our concluding 'Buy-Sell' recommendation on the firm is
Strong Buy.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Heidrick Struggles International. Please refer to our
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