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NEW YORK (TheStreet) -- Heidrick & Struggles (HSII) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HEIDRICK & STRUGGLES INTL (HSII) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 95.6% when compared to the same quarter one year prior, rising from $1.94 million to $3.79 million.
- HSII's revenue growth trails the industry average of 20.9%. Since the same quarter one year prior, revenues rose by 10.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HSII's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HSII has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 90.90% and other important driving factors, this stock has surged by 50.06% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- Net operating cash flow has increased to $29.87 million or 45.26% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.36%.
- You can view the full analysis from the report here: HSII Ratings Report
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