Hackett Group, Inc.

HCKT

Services-Management Consulting Services

Mkt Cap

$615.5M

PE

18.02

Debt

$32.71M

Cash

$20.96M

EV

$627.3M

FCF

$33.3M

Market Cap

$615.5M

P/E Ratio

18.02

Debt

$32.71M

Cash

$20.96M

EV

$627.3M

FCF

$33.3M

Charts data: {"Earnings":[{"time":"2015-01-01","value":9711000},{"time":"2015-12-31","value":13809000},{"time":"2016-12-29","value":21541000},{"time":"2017-12-28","value":27354000},{"time":"2018-12-27","value":23909000},{"time":"2019-12-26","value":23277000},{"time":"2020-12-31","value":5473000},{"time":"2021-12-30","value":41545000},{"time":"2022-12-29","value":40802000},{"time":"2023-12-28","value":34151000}],"Sales":[{"time":"2015-01-01","value":236737000},{"time":"2015-12-31","value":260940000},{"time":"2016-12-29","value":288561000},{"time":"2017-12-28","value":285862000},{"time":"2018-12-27","value":285887000},{"time":"2019-12-26","value":282472000},{"time":"2020-12-31","value":239482000},{"time":"2021-12-30","value":278809000},{"time":"2022-12-29","value":293742000},{"time":"2023-12-28","value":296590000}],"Net Margins":[{"time":"2015-01-01","value":0.041020203854910724},{"time":"2015-12-31","value":0.05292021154288342},{"time":"2016-12-29","value":0.07464972744064513},{"time":"2017-12-28","value":0.09568952851375839},{"time":"2018-12-27","value":0.08363094509369086},{"time":"2019-12-26","value":0.08240462771531337},{"time":"2020-12-31","value":0.0228534921204934},{"time":"2021-12-30","value":0.149008819657902},{"time":"2022-12-29","value":0.13890420845503879},{"time":"2023-12-28","value":0.11514548703597559}],"Assets":[{"time":"2015-01-01","value":152786000},{"time":"2015-12-31","value":160379000},{"time":"2016-12-29","value":159299000},{"time":"2017-12-28","value":185231000},{"time":"2018-12-27","value":180752000},{"time":"2019-12-26","value":193735000},{"time":"2020-12-31","value":192545000},{"time":"2021-12-30","value":207541000},{"time":"2022-12-29","value":184993000},{"time":"2023-12-28","value":181428000}],"Stockholders Equity":[{"time":"2015-01-01","value":89788000},{"time":"2015-12-31","value":102144000},{"time":"2016-12-29","value":86269000},{"time":"2017-12-28","value":107275000},{"time":"2018-12-27","value":123590000},{"time":"2019-12-26","value":137614000},{"time":"2020-12-31","value":140887000},{"time":"2021-12-30","value":143853000},{"time":"2022-12-29","value":58278000},{"time":"2023-12-28","value":90080000}],"ROE":[{"time":"2015-01-01","value":0.1081547645565109},{"time":"2015-12-31","value":0.13519149436090225},{"time":"2016-12-29","value":0.24969571920388553},{"time":"2017-12-28","value":0.25498951293404803},{"time":"2018-12-27","value":0.19345416295816814},{"time":"2019-12-26","value":0.16914703445870333},{"time":"2020-12-31","value":0.038846735326893186},{"time":"2021-12-30","value":0.28880176291074916},{"time":"2022-12-29","value":0.7001269775901713},{"time":"2023-12-28","value":0.37911856127886323}],"ROA":[{"time":"2015-01-01","value":0.08241592816095715},{"time":"2015-12-31","value":0.13672612997961078},{"time":"2016-12-29","value":0.2169065719182167},{"time":"2017-12-28","value":0.16639763322554},{"time":"2018-12-27","value":0.18574621580950695},{"time":"2019-12-26","value":0.16175703925465199},{"time":"2020-12-31","value":0.044883014360279416},{"time":"2021-12-30","value":0.2239364752024901},{"time":"2022-12-29","value":0.29864913807549476},{"time":"2023-12-28","value":0.2715236898383932}]}

The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm primarily in the United States, Europe, and internationally. The company operates through three segments: Global Strategy & Business Transformation, Oracle Solutions, and SAP Solutions. It offers Hackett Connect, an online searchable repository; best practice accelerators that provide web-based access to best practices, customized software configuration tools, and best practice process flows; advisor inquiry for access to fact-based advice on proven approaches and methods; best practice research that provides insights into the proven approaches; and peer interaction comprising member-led webcasts, annual best practice conferences, annual member forums, membership performance surveys, and client-submitted content, as well as intellectual property as-a-service and Hackett Institute programs. The company also provides benchmarking services that conducts studies for selling, general and administrative, finance, human resources, information technology, procurement, enterprise performance management, and shared services; business transformation practices; and oracle solutions that help clients to choose and deploy oracle applications that best meet their needs and objectives. In addition, it offers SAP solutions, including planning, architecture, and vendor evaluation and selection through implementation, customization, testing, and integration; post-implementation support, change and exception management, process transparency, system documentation, and end-user training; and off-shore application development, and application maintenance and support services. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.

Sector

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9/28/18
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6/29/18
10-Q
3/30/18
10-K
12/29/17

DCF

Discounted Cash Flow Valuation of Hackett Group, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$33.3M	$35.09M	$36.95M	$38.9M	$40.94M	$43.07M	$45.29M	$47.61M	$50.03M	$52.55M	$55.18M	$551.8M
DCF		$30.51M	$27.94M	$25.58M	$23.41M	$21.41M	$19.58M	$17.9M	$16.36M	$14.94M	$13.64M	$136.4M
Value	$347.7M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 8.1%

Earnings Stability 13%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5.3%	7.5%	9.6%	8.4%	8.2%	2.3%	15%	14%	12%	12%
ROA	14%	22%	17%	19%	16%	4.5%	22%	30%	27%	27%
ROE	14%	25%	25%	19%	17%	3.9%	29%	70%	38%	38%

What is the average Net Margin?

The average Net Margin over the past 5 years is +9.87%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.29%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +19.77%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.91%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +29.49%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +7.92%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	0.24	0.95	0.29	-	-	-	1.10	0.98	0.98
Debt Equity	-	0.08	0.18	0.05	-	-	-	1.02	0.36	0.36
MIN
Graham Stability	-	-	100%	100%	96%	22%	100%	100%	100%	22%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.98.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.16.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.22.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	0.39%	0.74%	7.4%	0.97%	-0.55%
Net Income	6.8%	7.4%	84%	-16%	13%
Stockholders Equity	0.62%	-6.1%	-14%	55%	-0.43%
FCF	1.6%	7.9%	-7.7%	-39%	-7.1%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +0.74%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.55%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +7.39%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +13.22%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -6.13%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.43%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +7.89%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -7.1%.