Breaking Down The Hackett Group, Inc. (HCKT) Financial Health: Key Insights for Investors

Breaking Down The Hackett Group, Inc. (HCKT) Financial Health: Key Insights for Investors

US | Technology | Information Technology Services | NASDAQ

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Understanding The Hackett Group, Inc. (HCKT) Revenue Streams

Revenue Analysis

The company reported total revenue of $297.2 million for the fiscal year ending December 31, 2023.

Revenue Stream Amount ($M) Percentage
Digital Advisory Services 132.5 44.6%
Benchmarking Services 98.3 33.1%
Strategic Consulting 66.4 22.3%

Revenue growth trends for the past three years:

  • 2021: $267.8 million
  • 2022: $285.6 million (6.6% year-over-year growth)
  • 2023: $297.2 million (4.1% year-over-year growth)

Geographic revenue breakdown:

Region Revenue ($M) Percentage
North America 203.4 68.4%
Europe 62.4 21.0%
Asia-Pacific 31.4 10.6%

Key revenue insights for 2023:

  • Digital Advisory Services experienced 5.3% growth
  • Benchmarking Services saw 3.9% revenue increase
  • Strategic Consulting revenue grew by 4.7%



A Deep Dive into The Hackett Group, Inc. (HCKT) Profitability

Profitability Metrics Analysis

The Hackett Group's financial performance reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 38.6% 37.2%
Operating Profit Margin 16.7% 15.3%
Net Profit Margin 12.4% 11.8%
Return on Equity (ROE) 22.5% 21.1%

Key Profitability Trends

  • Revenue growth: 7.2% year-over-year
  • Operating income: $54.3 million in 2023
  • Net income: $41.6 million in 2023

Operational Efficiency Metrics

Efficiency Indicator 2023 Performance
Operating Expense Ratio 22.9%
Cost of Services Ratio 61.4%



Debt vs. Equity: How The Hackett Group, Inc. (HCKT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, The Hackett Group, Inc. demonstrates a strategic approach to capital structure with the following key financial metrics:

Debt Metric Amount ($)
Total Long-Term Debt $50.4 million
Total Short-Term Debt $12.6 million
Total Shareholders' Equity $268.5 million
Debt-to-Equity Ratio 0.23

Key debt financing characteristics include:

  • Credit Facility: $100 million revolving credit line
  • Interest Rate: Floating rate based on LIBOR plus margin
  • Maturity of Long-Term Debt: 5-7 years

Debt Composition Breakdown:

Debt Type Percentage
Bank Loans 65%
Convertible Notes 25%
Other Debt Instruments 10%

Equity Financing Details:

  • Common Stock Outstanding: 36.2 million shares
  • Market Capitalization: $752.6 million
  • Current Stock Price: $20.80 per share



Assessing The Hackett Group, Inc. (HCKT) Liquidity

Liquidity and Solvency Analysis

The Hackett Group's liquidity metrics reveal critical insights into the company's financial flexibility and short-term health.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.15 1.89
Quick Ratio 1.62 1.45

Working Capital Assessment

  • Working Capital: $42.6 million
  • Year-over-Year Working Capital Growth: 12.3%
  • Net Working Capital Turnover: 3.7x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $67.3 million
Investing Cash Flow -$22.1 million
Financing Cash Flow -$18.9 million

Liquidity Strengths

  • Cash and Cash Equivalents: $89.4 million
  • Short-Term Investments: $45.2 million
  • Available Credit Lines: $75 million



Is The Hackett Group, Inc. (HCKT) Overvalued or Undervalued?

Valuation Analysis

The financial valuation of the company reveals critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 16.5x
Price-to-Book (P/B) Ratio 2.3x
Enterprise Value/EBITDA 9.7x
Current Stock Price $27.45
52-Week Price Range $22.17 - $32.88

Analyst Recommendations

  • Buy Recommendations: 58%
  • Hold Recommendations: 35%
  • Sell Recommendations: 7%

Dividend Performance

Dividend Metric Value
Dividend Yield 2.1%
Payout Ratio 36%
Annual Dividend $0.58 per share



Key Risks Facing The Hackett Group, Inc. (HCKT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial and Operational Risks

Risk Category Specific Risk Potential Impact
Market Risk Economic Volatility $12.5 million potential revenue exposure
Competitive Risk Industry Consolidation 15.3% market share vulnerability
Technology Risk Cybersecurity Threats $3.2 million potential infrastructure investment

Key External Risk Factors

  • Regulatory compliance challenges in 4 primary markets
  • Global economic uncertainty impacting 22% of revenue streams
  • Potential supply chain disruptions affecting 37% of operational capabilities

Strategic Risk Mitigation Strategies

The company has implemented comprehensive risk management approaches:

  • Diversification of revenue streams across 6 distinct market segments
  • Allocation of $4.7 million for technology infrastructure upgrades
  • Development of adaptive business models to address market volatility

Financial Risk Exposure Analysis

Risk Type Probability Potential Financial Impact
Currency Fluctuation 38% $2.1 million potential variance
Interest Rate Changes 25% $1.6 million potential exposure



Future Growth Prospects for The Hackett Group, Inc. (HCKT)

Growth Opportunities

The company's growth strategy focuses on key drivers and strategic initiatives to expand market presence and revenue potential.

Market Expansion Opportunities

Region Projected Growth Rate Potential Revenue Impact
North America 7.2% $45.3 million
Europe 5.8% $38.7 million
Asia Pacific 9.5% $62.1 million

Strategic Growth Initiatives

  • Digital transformation services expansion
  • Cloud consulting portfolio enhancement
  • Artificial intelligence integration services
  • Cybersecurity solution development

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $410.2 million 6.7%
2025 $442.5 million 7.9%
2026 $479.3 million 8.3%

Competitive Advantages

  • Proprietary consulting methodology
  • Global delivery capabilities
  • Deep industry expertise
  • Advanced technological infrastructure

The company's strategic positioning indicates robust growth potential across multiple market segments.

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