Assessing Robert Half International Inc’s (NYSE:RHI) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess RHI’s recent performance announced on 30 September 2018 and evaluate these figures to its long-term trend and industry movements.
Were RHI’s earnings stronger than its past performances and the industry?
RHI’s trailing twelve-month earnings (from 30 September 2018) of US$368m has jumped 14% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 4.8%, indicating the rate at which RHI is growing has accelerated. What’s enabled this growth? Well, let’s take a look at whether it is merely due to an industry uplift, or if Robert Half International has experienced some company-specific growth.
In terms of returns from investment, Robert Half International has invested its equity funds well leading to a 33% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 19% 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 54% to 50%.
What does this mean?
Robert Half International’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Robert Half International gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend 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 30 September 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.