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Understanding how Robert Half International Inc. (NYSE:RHI) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how Robert Half International is doing by comparing its latest earnings with its long-term trend as well as the performance of its professional services industry peers.
How Did RHI's Recent Performance Stack Up Against Its Past?
RHI's trailing twelve-month earnings (from 31 March 2019) of US$448m has jumped 45% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 5.6%, indicating the rate at which RHI is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is merely owing to an industry uplift, 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 42% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 23% exceeds the US Professional Services industry of 6.2%, 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 58% to 55%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. 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 better picture 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 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.