Measuring Robert Half International Inc.'s (NYSE:RHI) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess RHI's recent performance announced on 30 June 2019 and compare these figures to its historical trend and industry movements.
Commentary On RHI's Past Performance
RHI's trailing twelve-month earnings (from 30 June 2019) of US$453m has jumped 34% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 5.9%, indicating the rate at which RHI is growing has accelerated. What's the driver of this growth? Let's take a look at if it is merely because of industry tailwinds, or if Robert Half International has seen some company-specific growth.
In terms of returns from investment, Robert Half International has invested its equity funds well leading to a 41% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 20% exceeds the US Professional Services industry of 7.2%, indicating Robert Half International has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Robert Half International’s debt level, has declined over the past 3 years from 53% to 46%.
What does this mean?
Though Robert Half International's past data is helpful, it is only one aspect of my investment thesis. While Robert Half International has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Robert Half International to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for RHI’s future growth? Take a look at our free research report of analyst consensus for RHI’s outlook.
- Financial Health: Are RHI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
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