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

Are you keeping a close watch on The Hackett Group, Inc. (HCKT) and wondering about its financial stability? With a recent 5.41% increase in revenue, reaching $307.03 million in 2024, and adjusted earnings per share of $0.47 in the fourth quarter, exceeding expectations by $0.08, it's crucial to delve deeper. But, how does this growth compare to previous years, and what factors are influencing these results? Let’s explore the key financial insights that can help you make informed decisions about HCKT.

The Hackett Group, Inc. (HCKT) Revenue Analysis

Understanding the revenue streams of The Hackett Group, Inc. (HCKT) is crucial for investors seeking to assess the company’s financial health and growth potential. A detailed breakdown reveals the primary sources of income, historical growth trends, and the contribution of different business segments to the overall revenue.

The Hackett Group, Inc.'s revenue is derived primarily from:

• Consulting services: This includes strategic advisory, operations improvement, and digital transformation services.
• Benchmarking and research: Providing data-driven insights and best practices to clients.
• Executive advisory programs: Offering leadership development and peer networking opportunities.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and market position. While specific percentage increases or decreases require up-to-date financial reports, examining historical trends helps to understand the company’s ability to sustain growth.

To illustrate, a sample table structure showcasing potential revenue segment contributions could look like this:

Significant changes in revenue streams, such as the introduction of new service offerings, expansion into new geographic markets, or shifts in client demand, can significantly impact the company's financial performance. Monitoring these changes is essential for investors.

For further insights into the company's strategic direction, see Mission Statement, Vision, & Core Values of The Hackett Group, Inc. (HCKT).

The Hackett Group, Inc. (HCKT) Profitability Metrics

Analyzing The Hackett Group, Inc.'s profitability involves examining several key metrics, including gross profit, operating profit, and net profit margins. These figures provide insights into the company's efficiency in generating earnings from its revenue and managing its expenses.

Here's an overview of The Hackett Group, Inc.'s profitability based on its recent financial data:

• Gross Profit: In the fiscal year 2024, The Hackett Group reported a gross profit of $178.24 million.
• Operating Income: The company's operating income for the same period was $38.38 million.
• Net Income: The Hackett Group's net income available to common stockholders for 2024 stood at $23.43 million.

To provide a clearer picture, the profit margins can be calculated as follows:

• Gross Profit Margin: Approximately 50.75% in 2024 (Gross Profit / Total Revenue).
• Operating Profit Margin: Roughly 10.92% in 2024 (Operating Income / Total Revenue).
• Net Profit Margin: Around 6.67% in 2024 (Net Income / Total Revenue).

A comparison with industry averages and historical trends would offer a more comprehensive understanding of The Hackett Group's financial performance. However, based on the 2024 fiscal year, the company demonstrates moderate profitability.

Details on operational efficiency, such as cost management and trends in gross margins, would require a deeper dive into the company's financial statements and operational data. For instance, effective cost management can positively influence the gross margin trends, reflecting the company's ability to control the cost of services and goods sold.

The following table summarizes The Hackett Group, Inc.'s profitability metrics for 2024:

To gain further insights into The Hackett Group, Inc., consider exploring additional resources such as: Exploring The Hackett Group, Inc. (HCKT) Investor Profile: Who’s Buying and Why?

The Hackett Group, Inc. (HCKT) Debt vs. Equity Structure

Understanding the balance between debt and equity is crucial for assessing the financial health of The Hackett Group, Inc. (HCKT). This involves looking at the company's debt levels, its debt-to-equity ratio, and how it manages its financing strategies. For further insights into the company's strategic direction, see: Mission Statement, Vision, & Core Values of The Hackett Group, Inc. (HCKT).

As of the fiscal year 2024, The Hackett Group, Inc. (HCKT) demonstrates the following debt profile:

• Long-term debt: Specific figures for long-term debt would be detailed in their financial statements.
• Short-term debt: Similar to long-term debt, the exact amount of short-term debt is available in their financial reports.

The debt-to-equity ratio is a key metric to evaluate the extent to which The Hackett Group, Inc. (HCKT) is using debt to finance its assets relative to the value of shareholders’ equity. To calculate this ratio:

Debt-to-Equity Ratio = Total Liabilities / Shareholder Equity

A comparison to industry standards provides context. Generally, a ratio below 1.0 indicates that the company relies more on equity than debt, suggesting a more conservative financial approach. However, the ideal ratio varies by industry.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact the company's financial structure. Monitoring these activities helps in understanding the company's strategic financial decisions.

Balancing debt financing and equity funding is a strategic decision for The Hackett Group, Inc. (HCKT). Debt can provide leverage and potential tax advantages, while equity reduces financial risk and provides a stable capital base.

Here's a simplified representation of how debt and equity might interplay in The Hackett Group, Inc. (HCKT)'s capital structure (Note: This is an illustrative table; refer to the company's actual financial statements for precise data):

Analyzing these elements provides a comprehensive view of The Hackett Group, Inc. (HCKT)'s financial strategy and its implications for investors.

The Hackett Group, Inc. (HCKT) Liquidity and Solvency

Understanding The Hackett Group, Inc.'s (HCKT) financial health requires a close examination of its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Key metrics and trends provide insights into the company’s financial stability.

Assessing The Hackett Group, Inc.'s Liquidity:

Analyzing liquidity involves looking at several key ratios and trends:

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates greater liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, is calculated by dividing quick assets (current assets excluding inventory) by current liabilities. This ratio provides a more conservative measure of liquidity.
• Working Capital: Working capital is the difference between current assets and current liabilities. Monitoring trends in working capital can reveal whether a company's short-term financial health is improving or deteriorating.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of how cash moves in and out of a company. There are three main categories:

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets, such as property, plant, and equipment.
• Financing Cash Flow: Cash related to debt, equity, and dividends.

Here is a sample table illustrating how these elements might be analyzed (Note: Actual data would be inserted in a real analysis):

Potential liquidity concerns might arise if the current and quick ratios are declining, working capital is decreasing, or operating cash flow is weakening. Conversely, increasing ratios and strong operating cash flow indicate positive liquidity.

To gain further insights into The Hackett Group, Inc.'s strategic direction, explore Mission Statement, Vision, & Core Values of The Hackett Group, Inc. (HCKT).

The Hackett Group, Inc. (HCKT) Valuation Analysis

When evaluating whether The Hackett Group, Inc. (HCKT) is overvalued or undervalued, several key financial ratios and indicators are considered. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Here’s a breakdown of these elements:

• Price-to-Earnings (P/E) Ratio: As of April 2025, The Hackett Group's P/E ratio is around 24.3 to 25.10. A historical analysis reveals that The Hackett Group's P/E ratio has averaged 24.7 over the last ten years.
• Price-to-Book (P/B) Ratio: The P/B ratio for The Hackett Group is approximately 6.20 to 7.28 as of April 2025.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The Hackett Group's latest twelve months EV/EBITDA is 16.7x. The EV/EBITDA for fiscal years ending January 2021 to 2024 averaged 12.9x.

These valuation metrics provide a snapshot of how the market values The Hackett Group relative to its earnings, book value, and operational cash flow.

Analyzing the stock price trends provides context to these ratios:

• Stock Price Performance: Over the last 12 months, The Hackett Group’s stock price rose by 23.34%.
• 52 Week High/Low: The 52-week high is $34.02, and the 52-week low is $20.23.

The trend indicates a positive market sentiment over the past year, but it's important to consider broader market conditions and company-specific developments that may have influenced this performance.

For investors seeking income, dividend-related metrics are crucial:

• Dividend Yield: The forward dividend yield is around 1.70% to 1.86%.
• Payout Ratio: The payout ratio is approximately 41.90%.
• Annualized Dividend: The annualized dividend is $0.48.

These figures suggest that The Hackett Group returns a portion of its earnings to shareholders, with a payout ratio indicating the sustainability of these dividends.

To get a sense of market expectations and sentiment, here’s what analysts are saying:

• Analyst Consensus: The consensus rating for The Hackett Group is 'Moderate Buy' to 'Strong Buy'.
• Price Target: The average 12-month price target is $32.67 to $35.67.

Analysts' ratings and price targets reflect their expectations for the stock's future performance, providing additional insights for investors.

Here is a table summarizing key valuation metrics for The Hackett Group, Inc. (HCKT):

For further insights, consider reading: Breaking Down The Hackett Group, Inc. (HCKT) Financial Health: Key Insights for Investors

The Hackett Group, Inc. (HCKT) Risk Factors

Understanding the risks facing The Hackett Group, Inc. (HCKT) is crucial for investors. These risks can stem from both internal and external factors, impacting the company's financial health and future performance. Key areas of concern include industry competition, regulatory changes, and overall market conditions.

Here's a breakdown of potential risk factors:

• Industry Competition: The Hackett Group operates in a competitive market for management consulting, benchmarking, and technology advisory services. Increased competition could lead to pricing pressures and reduced market share.
• Regulatory Changes: Changes in regulations, particularly those affecting data privacy, cybersecurity, or accounting standards, could increase compliance costs and impact service offerings.
• Market Conditions: Economic downturns or shifts in business spending patterns can reduce demand for The Hackett Group's services, affecting revenue and profitability.

Operational, financial, and strategic risks are often highlighted in The Hackett Group's earnings reports and filings. These may include:

• Project Delivery Risks: The risk of failing to deliver projects on time and within budget, which could damage client relationships and impact revenue.
• Talent Management: Attracting and retaining qualified consultants and advisors is critical. Loss of key personnel or inability to attract new talent could disrupt operations.
• Intellectual Property Protection: Protecting proprietary methodologies and data is essential to maintaining a competitive advantage. Infringement or loss of intellectual property could harm the business.
• Cybersecurity Threats: The risk of data breaches or cyberattacks that could compromise client data and disrupt operations.

Mitigation strategies can include:

• Diversification of Services: Expanding service offerings to reduce reliance on specific areas and address a broader range of client needs.
• Geographic Expansion: Expanding into new geographic markets to diversify revenue streams and reduce dependence on specific regions.
• Investment in Technology: Investing in new technologies to improve service delivery, enhance data security, and maintain a competitive edge.
• Client Relationship Management: Strengthening client relationships to improve retention rates and secure repeat business.

For further insights into The Hackett Group, Inc. (HCKT), consider exploring this resource: Exploring The Hackett Group, Inc. (HCKT) Investor Profile: Who’s Buying and Why?

The Hackett Group, Inc. (HCKT) Growth Opportunities

The Hackett Group, Inc. (HCKT) faces a dynamic landscape of growth opportunities driven by product innovation, strategic market expansion, and evolving client needs. Their ability to capitalize on these areas will be crucial for sustained financial performance.

Key growth drivers for The Hackett Group, Inc. (HCKT) include:

• Product Innovations: Continuously developing and refining their advisory, benchmarking, and managed services offerings to meet the changing demands of businesses.
• Market Expansion: Extending their reach into new geographic regions and industries, leveraging their expertise to serve a broader client base.
• Acquisitions: Strategically acquiring companies that complement their existing capabilities and expand their market presence.

While specific future revenue growth projections and earnings estimates require up-to-date financial analysis, understanding the strategic initiatives and competitive advantages can provide insights into the company's potential.

Strategic initiatives that may drive future growth:

• Digital Transformation Services: Helping clients navigate and implement digital solutions to improve efficiency and effectiveness.
• Working Capital Management: Providing expertise in optimizing cash flow and improving financial performance.
• Enterprise Performance Management: Assisting organizations in aligning their strategies, processes, and technology to achieve their goals.

A crucial element of The Hackett Group, Inc. (HCKT)'s strategy involves partnerships. While specifics change, these collaborations typically aim to broaden service offerings and market reach.

Competitive advantages that position The Hackett Group, Inc. (HCKT) for growth:

• Specialized Expertise: Deep knowledge and experience in specific areas of business operations, such as procurement, finance, and human resources.
• Benchmarking Data: Proprietary data and insights that allow clients to compare their performance against industry peers and identify areas for improvement.
• Proven Methodologies: Established frameworks and approaches for delivering consulting and managed services that drive measurable results.

To gain more insight into the company's values, consider exploring: Mission Statement, Vision, & Core Values of The Hackett Group, Inc. (HCKT).