Robert Half Inc. (NYSE: RHI)

Sector: Industrials Industry: Staffing & Employment Services CIK: 0000315213
Market Cap 2.48 Bn
P/B 1.94
P/E 18.65
P/S 0.46
ROIC (Qtr) 3.40
Div Yield % 9.51
Rev 1y % (Qtr) -5.79
Total Debt (Qtr) 245.54 Mn
Debt/Equity (Qtr) 0.19
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About

Robert Half International Inc., commonly known as RHI, is a company that operates in the human resources and staffing industry. It provides specialized talent solutions and business consulting services through its Robert Half and Protiviti company names. The company's main business activities include offering contract talent solutions and permanent placement talent solutions to clients in various industries such as finance, accounting, technology, marketing, and legal. RHI generates revenue through its contract talent solutions and permanent placement...

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Investment thesis

Bull case

  • Strong operating cash flow of 319.96M provides robust 1.30x coverage of total debt 245.54M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 464.44M provide 6.65x coverage of short-term debt 69.79M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 2.60B provides 10.61x coverage of total debt 245.54M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 266.81M exceeds capital expenditure of 53.16M by 5.02x, indicating strong organic growth funding capability.
  • Operating cash flow of 319.96M fully covers other non-current liabilities 20.17M by 15.86x, showing strong long-term stability.

Bear case

  • Operating cash flow of 319.96M barely covers its investment activities of (85.70M), with a coverage ratio of -3.73, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 319.96M provides thin coverage of dividend payments of (238.22M) with a -1.34 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 464.44M provide limited coverage of acquisition spending of (10.72M), which is -43.32x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 194.35M show weak coverage of depreciation charges of 81.63M, with a 2.38 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 319.96M is outpaced by equity issuance of (92.09M) (-3.47 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Staffing & Employment Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TNET Trinet Group, Inc. 2.92 Bn 13.22 0.86 0.94 Bn
2 KFY Korn Ferry 2.76 Bn 66.66 3.91 0.55 Bn
3 RHI Robert Half Inc. 2.48 Bn 18.65 0.46 0.25 Bn
4 MAN ManpowerGroup Inc. 1.76 Bn 3.55 0.08 1.64 Bn
5 KFRC Kforce Inc 1.11 Bn -12.63 1.14 0.07 Bn
6 BBSI Barrett Business Services Inc 0.94 Bn 17.65 1.01 0.03 Bn
7 NSP Insperity, Inc. 0.92 Bn -131.16 0.13 0.44 Bn
8 KELYA Kelly Services Inc 0.33 Bn -1.29 0.08 0.16 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.82 0.72
EV to Cash from Ops. EV/CFO 7.36 13.34
EV to Debt EV to Debt 9.60 16.96
EV to EBIT EV/EBIT 12.12 6.77
EV to EBITDA EV/EBITDA 14.91 5.70
EV to Free Cash Flow [EV/FCF] EV/FCF 8.83 27.09
EV to Market Cap EV to Market Cap 0.95 0.88
EV to Revenue EV/Rev 0.44 0.75
Price to Book Value [P/B] P/B 1.94 2.96
Price to Earnings [P/E] P/E 18.65 -37.77
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.56 -0.44
Dividend Payout Ratio % Div Payout % (Qtr) 177.40 -81.87
Dividend per Basic Share Div per Share (Qtr) 2.36 0.84
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 88.56 115.87
Interest Coverage Int. cover (Qtr) 0.00 -11.60
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 5.62 24.71
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -13.61 155.53
Dividend Growth (1y) % Div 1y % (Qtr) 11.32 35.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -47.14 -2,529.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -52.21 -29.98
EBIT Growth (1y) % EBIT 1y % (Qtr) -45.66 -51.52
EBT Growth (1y) % EBT 1y % (Qtr) -45.66 -79.33
EPS Growth (1y) % EPS 1y % (Qtr) -45.71 -2,182.39
FCF Growth (1y) % FCF 1y % (Qtr) -24.66 229.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.90 12.54
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.88 1.87
Cash Payout Ratio Cash Payout (Qtr) 0.64 0.36
Cash Ratio Cash Ratio (Qtr) 0.34 0.80
Current Ratio Curr Ratio (Qtr) 1.53 1.85
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 1.53
Interest Cover Ratio Int Coverage (Qtr) 0.00 -11.60
Times Interest Earned Times Interest Earned (Qtr) 0.00 -11.60
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.10 -8.99
EBIT Margin % EBIT Margin % (Qtr) 3.61 -51.06
EBT Margin % EBT Margin % (Qtr) 3.61 -11.99
Gross Margin % Gross Margin % (Qtr) 37.20 33.35
Net Profit Margin % Net Margin % (Qtr) 2.50 -13.87