Robert Half Inc Scores High in Price/Sales Investor Model

The report indicates that Robert Half Inc (RHI) has achieved an 80% rating based on the Price/Sales Investor model, highlighting strength in free cash flow and profit margins despite some shortcomings in EPS growth and price/sales ratios.

Date: 25-09-2024

AI Rating: 7

According to the report, ROBERT HALF INC (RHI) has received an impressive rating of 80% from the Price/Sales Investor model, which assesses stocks based on their P/S ratios, profit growth, free cash flow, and profit margins. This rating suggests that RHI is regarded positively within this investment strategy, indicating significant interest.

Upon review of specific factors, the report reveals that RHI passes several critical tests:

PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS

However, RHI faced challenges with:

LONG-TERM EPS GROWTH RATE: FAIL
PRICE/SALES RATIO: FAIL

Thus, while RHI exhibits strong fundamentals in areas like Free Cash Flow and Net Profit Margin, the failure in LONG-TERM EPS GROWTH RATE could be a concern for investors looking for consistent earnings growth. The mixed signals presented by the model may lead to volatility in stock price reactions as investors weigh these conflicting aspects.

Overall, for investors focusing on mid-cap growth stocks, especially in the Business Services sector, the current ratings suggest a cautiously optimistic outlook based on the strengths and weaknesses highlighted in the report.

Stocks: RHI