Why is HireQuest, Inc. ?
1
High Management Efficiency with a high ROCE of 18.00%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Net Sales has grown by an annual rate of 14.92% over the last 5 years
4
Flat results in Jun 25
- ROCE(HY) Lowest at 4.06%
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.68 times
- NET SALES(Q) At USD 7.64 MM has Fallen at -9.21%
5
With ROCE of 13.99%, it has a expensive valuation with a 2.09 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -44.46%, its profits have risen by 13.4% ; the PEG ratio of the company is 1.2
6
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.25% over the previous quarter and collectively hold 14.09% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -44.46% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to HireQuest, Inc. should be less than 10%
- Overall Portfolio exposure to Diversified Commercial Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HireQuest, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
HireQuest, Inc.
-45.27%
-0.66
47.19%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
14.92%
EBIT Growth (5y)
4.41%
EBIT to Interest (avg)
11.19
Debt to EBITDA (avg)
0.51
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
0.46
Tax Ratio
1.35%
Dividend Payout Ratio
90.98%
Pledged Shares
0
Institutional Holding
14.09%
ROCE (avg)
18.00%
ROE (avg)
19.62%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
2.15
EV to EBIT
14.96
EV to EBITDA
11.57
EV to Capital Employed
2.09
EV to Sales
4.29
PEG Ratio
1.17
Dividend Yield
2.37%
ROCE (Latest)
13.99%
ROE (Latest)
14.60%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Movement
8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 17.23 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
DIVIDEND PAYOUT RATIO(Y)
Highest at 79.16%
RAW MATERIAL COST(Y)
Fallen by 1.74% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 2.51 %
-4What is not working for the Company
ROCE(HY)
Lowest at 4.06%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.68 times
NET SALES(Q)
At USD 7.64 MM has Fallen at -9.21%
Here's what is working for HireQuest, Inc.
Operating Cash Flow
Highest at USD 17.23 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at 2.51 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 79.16%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 1.74% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for HireQuest, Inc.
Net Sales
At USD 7.64 MM has Fallen at -9.21%
over average net sales of the previous four periods of USD 8.41 MMMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Debtors Turnover Ratio
Lowest at 0.68 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






