Is Robert Half International (RHI) a Good Value Investment?
Fiduciary Management Inc. (FMI), an independent money management firm, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. Despite the macroeconomic headwinds, the global market continued to advance in the second quarter. The FMI Large Cap Strategy gained 5.7% (gross) / 5.6% (net) in the quarter compared to an 8.74% increase in the S&P 500 Index and a 4.08% gain in the iShares Russell 1000 Value ETF. The FMI Small Cap Strategy gained 6.0% (gross) / 5.8% (net) compared to a 5.21% gain in the Russell 2000 Index and a 3.18% increase in the Russell 2000 Value Index in the same period. The FMI All Cap Equity gained 4.3% (gross) / 4.2% (net) compared to 8.38% for the iShares Russell 3000 ETF and the FMI International Strategies gained 5.5% (gross) / 5.3% (net) on a currency-hedged basis and 5.2% (gross) / 5.0% (net) on a currency unhedged basis in the second quarter of 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.
FMI highlighted stocks like Robert Half International Inc. (NYSE:RHI) in the Q2 2023 investor letter. Headquartered in Menlo Park, California, Robert Half International Inc. (NYSE:RHI) is a talent solutions and business consulting service provider. On July 13, 2023, Robert Half International Inc. (NYSE:RHI) stock closed at $82.23 per share. One-month return of Robert Half International Inc. (NYSE:RHI) was 12.00%, and its shares gained 7.27% of their value over the last 52 weeks. Robert Half International Inc. (NYSE:RHI) has a market capitalization of $8.861 billion.
FMI made the following comment about Robert Half International Inc. (NYSE:RHI) in its second quarter 2023 investor letter:
"Robert Half International Inc. (NYSE:RHI) is the market leader in professional staffing for small and medium sized businesses. The company has a premier temporary and permanent placement franchise in the field of accounting (Accountemps) and finance, while its Protiviti business has become a strong domestic and international consultancy. RHI’s reinvestment in technology, including its national database, candidate performance scoring, and proprietary AI and matching capabilities are driving share gains versus fragmented competition. The business model is asset-light and generates consistently strong returns-on-capital, industry leading margins, and free cash flow. The less cyclical Protiviti business accounts for 30% of income. Capital allocation at RHI has been focused on reinvestment, share repurchases, and dividend increases. These factors should result in less overall cyclicality in EPS going forward. The shares are off 40% from its 2022 highs. We feel that the discounted valuation is reflective of current recession worries, which could lower demand for labor. Additionally, there are concerns around AI and the disruption that it could have on accounting. Our view is that the sentiment around the latter appears overdone, as demand for accountants has increased over time despite major advances in productivity tools."
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Robert Half International Inc. (NYSE:RHI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Robert Half International Inc. (NYSE:RHI) at the end of first quarter which was 21 in the previous quarter.
We discussed Robert Half International Inc. (NYSE:RHI) in another article and shared the list of best staffing company stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
