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Houlihan Lokey

DB:2HL
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2HL
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial advisory services worldwide. The last earnings update was 55 days ago. More info.


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2HL Share Price and Events
7 Day Returns
4.6%
DB:2HL
3%
DE Capital Markets
2.2%
DE Market
1 Year Returns
10%
DB:2HL
-6.9%
DE Capital Markets
-17.2%
DE Market
2HL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Houlihan Lokey (2HL) 4.6% -3% 3.7% 10% 44.9% -
DE Capital Markets 3% -17.7% -13.1% -6.9% -24.7% -54.9%
DE Market 2.2% -15.7% -24% -17.2% -23.3% -27.8%
1 Year Return vs Industry and Market
  • 2HL outperformed the Capital Markets industry which returned -6.9% over the past year.
  • 2HL outperformed the Market in Germany which returned -17.2% over the past year.
Price Volatility
2HL
Industry
5yr Volatility vs Market

2HL Value

 Is Houlihan Lokey undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Houlihan Lokey to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Houlihan Lokey.

DB:2HL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $17.49 * 19.6%
$3.43
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $17.49
Discount Rate (Cost of Equity) See below 4.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:2HL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.75
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.753 (1 + (1- 21%) (4.54%))
0.852
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.852 * 5.44%)
4.25%

Discounted Cash Flow Calculation for DB:2HL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Houlihan Lokey is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:2HL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19.6% – 4.25%) * $17.49)
$2.69
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.69 / (4.25% - -0.39%)
$58.04
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $17.49 + $58.04
$75.53
DB:2HL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:2HL represents 0.8714x of NYSE:HLI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.8714x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 75.53 x 0.8714
€65.82
Value per share (EUR) From above. €65.82
Current discount Discount to share price of €45.40
= -1 x (€45.40 - €65.82) / €65.82
31%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Houlihan Lokey is available for.
Intrinsic value
31%
Share price is €45.4 vs Future cash flow value of €65.82
Current Discount Checks
For Houlihan Lokey to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Houlihan Lokey's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Houlihan Lokey's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Houlihan Lokey's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Houlihan Lokey's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:2HL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.74
NYSE:HLI Share Price ** NYSE (2020-03-31) in USD $52.1
Germany Capital Markets Industry PE Ratio Median Figure of 16 Publicly-Listed Capital Markets Companies 22.55x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Houlihan Lokey.

DB:2HL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HLI Share Price ÷ EPS (both in USD)

= 52.1 ÷ 2.74

19.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Houlihan Lokey is good value based on earnings compared to the DE Capital Markets industry average.
  • Houlihan Lokey is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Houlihan Lokey's expected growth come at a high price?
Raw Data
DB:2HL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
11.7%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 6 Publicly-Listed Capital Markets Companies 1.59x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:2HL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.01x ÷ 11.7%

1.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Houlihan Lokey is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Houlihan Lokey's assets?
Raw Data
DB:2HL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $14.44
NYSE:HLI Share Price * NYSE (2020-03-31) in USD $52.1
Germany Capital Markets Industry PB Ratio Median Figure of 31 Publicly-Listed Capital Markets Companies 1.5x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.44x
DB:2HL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HLI Share Price ÷ Book Value per Share (both in USD)

= 52.1 ÷ 14.44

3.61x

* Primary Listing of Houlihan Lokey.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Houlihan Lokey is overvalued based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess Houlihan Lokey's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Houlihan Lokey has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

2HL Future Performance

 How is Houlihan Lokey expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Houlihan Lokey expected to grow at an attractive rate?
  • Houlihan Lokey's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Houlihan Lokey's earnings growth is positive but not above the Germany market average.
  • Houlihan Lokey's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:2HL Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:2HL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 11.7%
DB:2HL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 6%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 39.4%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:2HL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:2HL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 1,312 233 4
2021-03-31 1,247 216 6
2020-04-01
2020-03-31 1,169 193 6
DB:2HL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,147 243 170
2019-09-30 1,112 222 165
2019-06-30 1,114 234 172
2019-03-31 1,084 224 159
2018-12-31 1,037 202 152
2018-09-30 998 199 169
2018-06-30 965 193 163
2018-03-31 963 251 172
2017-12-31 975 241 168
2017-09-30 963 281 141
2017-06-30 908 259 128
2017-03-31 870 252 108

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Houlihan Lokey's earnings are expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).
  • Houlihan Lokey's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:2HL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Houlihan Lokey Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2HL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 3.58 3.81 3.35 2.00
2021-03-31 3.30 3.53 3.08 2.00
2020-04-01
2020-03-31 2.94 3.19 2.68 2.00
DB:2HL Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.74
2019-09-30 2.66
2019-06-30 2.78
2019-03-31 2.56
2018-12-31 2.43
2018-09-30 2.70
2018-06-30 2.60
2018-03-31 2.76
2017-12-31 2.71
2017-09-30 2.28
2017-06-30 2.08
2017-03-31 1.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Houlihan Lokey is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Houlihan Lokey's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Houlihan Lokey has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

2HL Past Performance

  How has Houlihan Lokey performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Houlihan Lokey's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Houlihan Lokey has delivered over 20% year on year earnings growth in the past 5 years.
  • Houlihan Lokey's 1-year earnings growth is less than its 5-year average (12% vs 20.4%)
  • Houlihan Lokey's earnings growth has exceeded the DE Capital Markets industry average in the past year (12% vs 3.2%).
Earnings and Revenue History
Houlihan Lokey's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Houlihan Lokey Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2HL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,147.39 170.13 807.34
2019-09-30 1,111.86 165.19 781.76
2019-06-30 1,113.96 172.20 777.90
2019-03-31 1,083.61 159.11 753.78
2018-12-31 1,037.10 151.86 718.09
2018-09-30 997.79 169.49 700.78
2018-06-30 965.25 162.72 680.87
2018-03-31 962.77 172.28 682.31
2017-12-31 974.95 168.26 691.99
2017-09-30 963.24 140.66 681.81
2017-06-30 907.54 128.18 645.56
2017-03-31 870.47 108.34 622.41
2016-12-31 796.37 97.05 573.04
2016-09-30 754.72 85.73 543.63
2016-06-30 726.38 74.11 533.39
2016-03-31 693.77 69.74 508.76
2015-12-31 695.92 71.73 516.84
2015-09-30 687.37 73.23 517.80
2015-06-30 685.38 80.57 511.44
2015-03-31 680.87 79.88 506.94
2014-12-31 670.26 74.47 503.08
2014-03-31 592.45 61.32 443.17

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Houlihan Lokey has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Houlihan Lokey used its assets more efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • Unable to establish if Houlihan Lokey improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Houlihan Lokey's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Houlihan Lokey has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

2HL Health

 How is Houlihan Lokey's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Houlihan Lokey's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Houlihan Lokey is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Houlihan Lokey's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Houlihan Lokey's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 85.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Houlihan Lokey Company Filings, last reported 3 months ago.

DB:2HL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 946.69 4.94 276.74
2019-09-30 891.86 8.27 220.25
2019-06-30 893.32 27.91 211.73
2019-03-31 891.33 8.66 285.75
2018-12-31 850.67 9.05 256.40
2018-09-30 828.31 33.33 227.60
2018-06-30 819.36 32.48 144.24
2018-03-31 852.81 11.86 206.72
2017-12-31 828.61 12.21 197.18
2017-09-30 790.17 16.18 245.36
2017-06-30 764.94 17.50 183.22
2017-03-31 730.46 32.56 300.31
2016-12-31 722.34 43.76 253.61
2016-09-30 696.23 51.23 156.07
2016-06-30 679.30 93.59 105.97
2016-03-31 653.56 76.62 166.17
2015-12-31 636.96 77.75 131.93
2015-09-30 614.73 62.00 97.78
2015-06-30 846.87 0.00 97.69
2015-03-31 825.89 0.00 88.66
2014-12-31 794.45 0.00 76.63
2014-03-31 714.94 0.00 109.42
  • Houlihan Lokey's level of debt (0.5%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Houlihan Lokey's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (4914.4%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Houlihan Lokey's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Houlihan Lokey's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Houlihan Lokey has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

2HL Dividends

 What is Houlihan Lokey's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.38%
Current annual income from Houlihan Lokey dividends. Estimated to be 2.62% next year.
If you bought €2,000 of Houlihan Lokey shares you are expected to receive €48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Houlihan Lokey's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.65%).
  • Houlihan Lokey's dividend is below the markets top 25% of dividend payers in Germany (4.87%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:2HL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 322 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:2HL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 1.42 3.00
2021-03-31 1.32 4.00
2020-04-01
2020-03-31 1.25 4.00
DB:2HL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-06 1.240 2.400
2020-02-03 1.240 2.255
2019-07-25 1.240 2.654
2019-05-24 1.240 2.771
2019-05-08 1.240 2.622
2019-01-29 1.080 2.339
2018-11-06 1.080 2.692
2018-10-25 1.080 2.648
2018-08-09 1.080 2.381
2018-07-26 1.080 2.216
2018-05-25 1.080 2.119
2018-05-09 1.080 2.197
2017-10-24 0.800 1.761
2017-08-04 0.800 2.135
2017-07-25 0.800 2.150
2017-06-13 0.800 2.245
2017-05-09 0.800 2.346
2017-02-06 0.800 2.444
2017-02-01 0.800 2.470
2016-11-14 0.680 2.270
2016-11-01 0.680 2.828
2016-08-11 0.680 2.741
2016-08-02 0.680 2.744
2016-06-23 0.680 2.994
2016-05-18 0.680 2.841
2016-02-11 0.600 2.448
2016-02-08 0.600 2.518
2015-11-13 0.600 2.537
2015-11-03 0.600 2.710

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Houlihan Lokey has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Houlihan Lokey only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Houlihan Lokey's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Houlihan Lokey's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Houlihan Lokey afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Houlihan Lokey has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

2HL Management

 What is the CEO of Houlihan Lokey's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Scott Beiser
COMPENSATION $4,659,467
AGE 59
TENURE AS CEO 17.3 years
CEO Bio

Mr. Scott Lee Beiser has been the Chief Executive Officer of Houlihan Lokey, Inc. since 2003 and its Director since 1991. Mr. Beiser is Senior MD of Houlihan Lokey, Inc. He serves on the Board of Directors of FNF Construction and RoadSafe Traffic Systems, and is an Advisor to several Boards and executives in the engineering and construction industry. Mr. Beiser earned both a B.S. and an M.S. in Finance from the College of Business and Economics at California State University, Northridge.

CEO Compensation
  • Scott's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Scott's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Houlihan Lokey management team in years:

7.2
Average Tenure
59
Average Age
  • The average tenure for the Houlihan Lokey management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Irwin Gold

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
62

Scott Beiser

TITLE
CEO, Senior MD & Director
COMPENSATION
$5M
AGE
59
TENURE
17.3 yrs

David Preiser

TITLE
Co-President
COMPENSATION
$3M
AGE
61
TENURE
7 yrs

Scott Adelson

TITLE
Co-President
COMPENSATION
$10M
AGE
58
TENURE
7 yrs

J. Alley

TITLE
MD & CFO
COMPENSATION
$1M
AGE
52
TENURE
7.3 yrs

Michael Boone

TITLE
Director of Financial Restructuring Group

Matthew Mazzucchi

TITLE
Financial Restructuring Managing Director

Arik Rashkes

TITLE
Managing Director of Financial Institutions Group

Jason Abt

TITLE
Managing Director of Investment Banking

Faiz Vahidy

TITLE
Vice President
Board of Directors Tenure

Average tenure and age of the Houlihan Lokey board of directors in years:

5.3
Average Tenure
59
Average Age
  • The tenure for the Houlihan Lokey board of directors is about average.
Board of Directors

Irwin Gold

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
62
TENURE
7.3 yrs

Scott Beiser

TITLE
CEO, Senior MD & Director
COMPENSATION
$5M
AGE
59
TENURE
29.3 yrs

David Preiser

TITLE
Co-President
COMPENSATION
$3M
AGE
61
TENURE
5.3 yrs

Scott Adelson

TITLE
Co-President
COMPENSATION
$10M
AGE
58
TENURE
5.3 yrs

Rob Schriesheim

TITLE
Independent Director
COMPENSATION
$180K
AGE
58
TENURE
5.3 yrs

Hideto Nishitani

TITLE
Director
AGE
59
TENURE
8.3 yrs

Jackie Kosecoff

TITLE
Independent Director
COMPENSATION
$150K
AGE
70
TENURE
3.8 yrs

Paul Zuber

TITLE
Independent Director
COMPENSATION
$168K
AGE
58
TENURE
1.5 yrs

Gillian Zucker

TITLE
Independent Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
01. Aug 19 Sell ORIX Corporation Company 30. Jul 19 30. Jul 19 -3,377,935 €40.92 €-138,229,464
30. May 19 Sell ORIX Corporation Company 28. May 19 28. May 19 -3,000,000 €40.73 €-122,180,466
X
Management checks
We assess Houlihan Lokey's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Houlihan Lokey has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

2HL News

Simply Wall St News

2HL Company Info

Description

Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial Advisory Services. The Corporate Finance segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as financial sponsors on various transactions. It also provides financing solutions and capital-raising advisory services for publicly-held and multinational corporations, financial sponsors, and privately-held companies. The Financial Restructuring segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. It also provides a range of advisory services, including structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; litigation support and expert testimony; and procuring debtor in possession financing. The Financial Advisory Services segment offers valuations of various assets, such as companies, illiquid debt and equity securities, and intellectual property. It also provides fairness opinions in connection with M&A and other transactions, and solvency opinions in connection with corporate spin-offs and dividend recapitalizations; and other types of financial opinions. In addition, this segment offers dispute resolution consulting services. It serves corporations, financial sponsors, and government agencies. The company was founded in 1972 and is headquartered in Los Angeles, California.

Details
Name: Houlihan Lokey, Inc.
2HL
Exchange: DB
Founded: 1972
$3,109,524,373
65,561,392
Website: http://www.hl.com
Address: Houlihan Lokey, Inc.
10250 Constellation Boulevard,
5th Floor,
Los Angeles,
California, 90067,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HLI Class A Common Stock New York Stock Exchange US USD 13. Aug 2015
DB 2HL Class A Common Stock Deutsche Boerse AG DE EUR 13. Aug 2015
Number of employees
Current staff
Staff numbers
1,354
Houlihan Lokey employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/01 05:03
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/02/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.