Services-Management Consulting Services
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.
Discounted Cash Flow Valuation of Hackett Group, Inc.
In the chart Earnings are multiplied by this value.
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 average Net Margin over the past 5 years is +9.54%.
The trend of Net Margin over the past 5 years is +1.01%.
The average ROA over the past 5 years is +18.02%.
The trend of ROA over the past 5 years is +1.88%.
The average ROE over the past 5 years is +27.42%.
The trend of ROE over the past 5 years is +6.8%.
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.
The Debt/FCF trailing twelve month is 1.37.
The trend of Debt/FCF over the past 5 years is 0.08.
Graham’s Stability measure stands at 0.22.
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.
The Revenue CAGR over the past 5 years is +0.55%.
The trend of Revenue growth rate over the past 5 years is -0.58%.
The Earnings CAGR over the past 5 years is +8.33%.
The trend of Earnings growth rate over the past 5 years is +25.07%.
The Equity CAGR over the past 5 years is -11.49%.
The trend of Equity growth rate over the past 5 years is -3.93%.
The FCF CAGR over the past 5 years is +22.1%.
The trend of FCF growth rate over the past 5 years is +0.81%.