Houlihan Lokey, Inc.

Finance
Investment Managers
www.hl.com

Earnings Score
Moat Score

Market Cap $10.71B
PE 30
Debt -
Cash $800.79M
EV -
FCF $678.09M

Earnings

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Sales & Net Margins

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Earnings	$358.87M
EBIT	$499.12M
ROE	17%
ROA	14%
FCF	$678.09M
Equity	$2.08B
Growth Stability	82%
PE	29.83
PEG	6.22
PB	5.15
P/FCF	15.79
P/S	4.77
Price/Cash	0.07
Net Margins	16%
Gross Margins	31%
Op. Margins	22%
Earnings CAGR	17%
Sales Growth YoY	24%
Sales Growth QoQ	10%
Sales CAGR	13%
FCF CAGR	15%
Equity CAGR	13%
Earnings Stability	0.7
Earnings Growth YoY	35%

Earnings Growth QoQ	2%
Earnings CAGR 5Y	5%
Sales CAGR 5Y	12%
FCF CAGR 5Y	-4%
Equity CAGR 5Y	12%
Earnings CAGR 3Y	-2%
Sales CAGR 3Y	-2%
FCF CAGR 3Y	-0%
Equity CAGR 3Y	15%
Market Cap	$10.71B
Revenue	$2.24B
Dividend Yield	2%
Payout Ratio	45%
Assets	$3.48B
Cash	$800.79M
Shares Outstanding	65.52M
Earnings Score	91%
Moat Score	95%
Gross Profit	$703.75M
Shares Growth 3y	1%
Equity Growth QoQ	6%
Equity Growth YoY	18%

Assets & ROA

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Stockholders Equity & ROE

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Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.

SEC Filings

Direct access to Houlihan Lokey, Inc. (HLI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31

Sector Comparison

How does Houlihan Lokey, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Houlihan Lokey, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 17%

Stability 70%

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Houlihan Lokey, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Houlihan Lokey, Inc..

Years

Calculation mode

= $19B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$678M	$779M	$895M	$1B	$1.2B	$1.4B	$1.6B	$1.8B	$2.1B	$2.4B	$2.7B	$27B
DCF		$708M	$740M	$773M	$807M	$843M	$880M	$920M	$960M	$1B	$1B	$10B
Value	$19B

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.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	-	12%	18%	15%	16%	21%	19%	14%	15%	16%
ROA	-	13%	15%	16%	14%	17%	21%	12%	12%	14%
ROE	-	15%	20%	18%	19%	23%	30%	16%	15%	17%

Good Net Margins (16.12%)

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

Safety and Stability

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.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	0.15	0.05	0.14	0.14	0.1	-	-	-	-
Debt over Equity	0.12	0.04	0.01	0.03	0.04	0.04	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	82%	84%	82%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Neutral Graham’s Stability (82%)

The company has a stability in its earnings that is not too good nor too bad.

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.

Years	03/2016	03/2017	03/2018	03/2019	03/2020	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	-	10%	13%	7%	32%	49%	-20%	6%	12%
Earnings YoY growth	-	55%	59%	-8%	16%	70%	40%	-42%	10%	5%
Equity YoY growth	-	12%	17%	5%	10%	41%	4%	12%	14%	12%
FCF YoY growth	-	5K%	13%	-10%	23%	112%	29%	-88%	206%	-4%