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HireQuest

Nasdaq:HQI
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HQI
Nasdaq
$80M
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

HireQuest, Inc. provides on-demand and temporary staffing solutions in the United States. The last earnings update was 149 days ago. More info.


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HQI Share Price and Events
7 Day Returns
2%
NasdaqCM:HQI
-0.2%
US Professional Services
0.5%
US Market
1 Year Returns
-
NasdaqCM:HQI
18.3%
US Professional Services
12.8%
US Market
HQI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HireQuest (HQI) 2% -9.5% -15.9% - - -
US Professional Services -0.2% -2.8% -0.8% 18.3% 47.6% 64.2%
US Market 0.5% 4.3% 8% 12.8% 38.7% 44.5%
1 Year Return vs Industry and Market
  • No trading data on HQI.
  • No trading data on HQI.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is HireQuest 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
  • It is not possible to calculate the future cash flow value for HireQuest. This is due to cash flow or dividend data being unavailable. The share price is $6.1.
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 HireQuest's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HireQuest's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:HQI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.54
NasdaqCM:HQI Share Price ** NasdaqCM (2019-11-13) in USD $6.1
United States of America Professional Services Industry PE Ratio Median Figure of 38 Publicly-Listed Professional Services Companies 18.82x
United States of America Market PE Ratio Median Figure of 2,922 Publicly-Listed Companies 18.24x

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

** Primary Listing of HireQuest.

NasdaqCM:HQI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:HQI Share Price ÷ EPS (both in USD)

= 6.1 ÷ 1.54

3.97x

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

  • HireQuest is good value based on earnings compared to the US Professional Services industry average.
  • HireQuest is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does HireQuest's expected growth come at a high price?
Raw Data
NasdaqCM:HQI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-3.6%per year
United States of America Professional Services Industry PEG Ratio Median Figure of 31 Publicly-Listed Professional Services Companies 1.4x
United States of America Market PEG Ratio Median Figure of 2,023 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for HireQuest, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on HireQuest's assets?
Raw Data
NasdaqCM:HQI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.75
NasdaqCM:HQI Share Price * NasdaqCM (2019-11-13) in USD $6.1
United States of America Professional Services Industry PB Ratio Median Figure of 62 Publicly-Listed Professional Services Companies 2.27x
United States of America Market PB Ratio Median Figure of 5,070 Publicly-Listed Companies 1.73x
NasdaqCM:HQI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:HQI Share Price ÷ Book Value per Share (both in USD)

= 6.1 ÷ 2.75

2.22x

* Primary Listing of HireQuest.

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

  • HireQuest is good value based on assets compared to the US Professional Services industry average.
X
Value checks
We assess HireQuest'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 Professional Services 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 Professional Services industry average (and greater than 0)? (1 check)
  5. HireQuest has a total score of 3/6, 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.

Future Performance

 How is HireQuest expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover HireQuest, future earnings growth has been estimated based on fundamentals.
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
-3.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HireQuest expected to grow at an attractive rate?
  • HireQuest's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HireQuest's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Unable to compare HireQuest's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:HQI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:HQI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -3.6%
United States of America Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 29.7%
United States of America Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 6.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NasdaqCM:HQI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:HQI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 13 -2 7
2018-12-31 13 5 7
2017-12-31 11 4 3
2016-12-31 10 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HireQuest's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if HireQuest is high growth as no revenue estimate data is available.
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
NasdaqCM:HQI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from HireQuest Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:HQI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31
2018-12-31 1.54
2017-12-31
2016-12-31

*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.
  • Unable to establish if HireQuest will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess HireQuest'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
HireQuest has a total score of 0/6, 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.

Past Performance

  How has HireQuest 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 HireQuest's growth in the last year to its industry (Professional Services).
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.
  • Insufficient data to establish if HireQuest's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare HireQuest's 1-year earnings growth to the 5-year average due to insufficient past data.
  • HireQuest's earnings growth has exceeded the US Professional Services industry average in the past year (89.7% vs 23.8%).
Earnings and Revenue History
HireQuest'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 HireQuest Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:HQI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 13.41 7.38 5.49
2018-12-31 12.97 7.12 5.38
2017-12-31 11.28 2.84 7.92
2016-12-31 10.09 3.03 6.13

*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.
  • HireQuest made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • HireQuest used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.
  • Unable to establish if HireQuest 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 HireQuest'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 Professional Services 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.
HireQuest 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.

Health

 How is HireQuest'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 HireQuest's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HireQuest is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HireQuest's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HireQuest'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 31.2x 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 HireQuest Company Filings, last reported 7 months ago.

NasdaqCM:HQI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 13.41 0.74 0.40
2018-12-31 12.73 0.00 1.29
2017-12-31 12.63 4.72 0.28
2016-12-31
  • HireQuest's level of debt (5.5%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if HireQuest's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • HireQuest earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess HireQuest'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. HireQuest 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.

Dividends

 What is HireQuest'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
0%
Current annual income from HireQuest dividends.
If you bought $2,000 of HireQuest shares you are expected to receive $0 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?
  • Unable to evaluate HireQuest's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate HireQuest's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
NasdaqCM:HQI 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 0 Analyst Estimates (S&P Global) See Below
United States of America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 1.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1948 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

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

  • Unable to perform a dividend volatility check as HireQuest has not reported any payouts.
  • Unable to verify if HireQuest's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of HireQuest's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as HireQuest has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess HireQuest's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 HireQuest afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HireQuest has a total score of 0/6, see the detailed checks below.


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

Management

 What is the CEO of HireQuest'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
Richard Hermanns
AGE 55
TENURE AS CEO 0.3 years
CEO Bio

Mr. Richard Hermanns has been Chairman, President and Chief Executive Officer of Command Center, Inc. since July 15, 2019. Mr. Hermanns previously served as President and Chief Executive Officer and Director of Hire Quest until July 15, 2019. Mr. Hermanns has nearly thirty years of experience in the temporary staffing industry. He has served as Chief Executive Officer and Secretary of Hire Quest, LLC since the Company’s founding in 2002. He served in the same capacities for predecessor entities since July 1991. He is also Chairman of the Board of Directors and President of Hirequest Insurance Company and has been since its founding in 2010. He has been Chief Executive Officer of Hire Quest Financial, LLC since its founding in 2006. Together with Edward Jackson, Mr. Hermanns owns a majority stake in Bass Underwriters, Inc., a large managing general insurance agent. Prior to founding Hire Quest and its related entities, Mr. Hermanns served as Chief Financial Officer of Outsource International, and as an Assistant Vice President for NCNB National Bank (now Bank of America). Among his charitable pursuits, he founded the Higher Quest Foundation, a non-profit organization dedicated to fighting global hunger in a more sustainable way. Mr. Hermanns obtained his Bachelor of Science degree in Economics and Finance from Barry University, and his Masters of Business Administration in Finance from the University of Southern California. Mr. Hermanns is also active in the charitable realm.

CEO Compensation
  • Insufficient data for Richard to compare compensation growth.
  • Insufficient data for Richard to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HireQuest management team in years:

0.3
Average Tenure
49
Average Age
  • The average tenure for the HireQuest management team is less than 2 years, this suggests a new team.
Management Team

Richard Hermanns

TITLE
Chairman
AGE
55
TENURE
0.3 yrs

Cory Smith

TITLE
CFO & Treasurer
AGE
43
TENURE
2.3 yrs

Rick Coleman

TITLE
Chief Operating Officer
AGE
63
TENURE
0.3 yrs

John McAnnar

TITLE
VP, General Counsel & Secretary
AGE
36
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the HireQuest board of directors in years:

0.3
Average Tenure
54
Average Age
  • The average tenure for the HireQuest board of directors is less than 3 years, this suggests a new board.
Board of Directors

R. Malhotra

TITLE
Vice Chairman
AGE
44
TENURE
0.3 yrs

Richard Hermanns

TITLE
Chairman
AGE
55
TENURE
0.3 yrs

J. Smith

TITLE
Independent Director
AGE
49
TENURE
6.9 yrs

Larry Hagenbuch

TITLE
Independent Director
AGE
52
TENURE
1.6 yrs

Payne Brown

TITLE
Independent Director
AGE
56
TENURE
0.3 yrs

Kathleen Shanahan

TITLE
Independent Director
AGE
61
TENURE
0.3 yrs

Ed Jackson

TITLE
Independent Director
AGE
54
TENURE
0.3 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 ($) Value ($)
X
Management checks
We assess HireQuest'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. HireQuest 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.

News

Simply Wall St News

Company Info

Description

HireQuest, Inc. provides on-demand and temporary staffing solutions in the United States. The company undertakes short and longer-term temporary work assignments; and recruits and places workers in temp-to-hire positions. It also provides temporary staffing services, including skilled and semi-skilled general labour and industrial personnel, clerical and secretarial personnel, and construction personnel. As of April 9, 2019, the company owned and operated 67 on-demand labour locations or branches across 22 states. It serves small businesses and large corporate enterprises in the manufacturing, warehousing, construction, hospitality, transportation, and retail industries. The company was formerly known as Command Center, Inc. and changed its name to HireQuest, Inc. in September 2019. HireQuest, Inc. was founded in 2002 and is headquartered in Goose Creek, South Carolina.

Details
Name: HireQuest, Inc.
HQI
Exchange: NasdaqCM
Founded: 2002
$79,738,260
13,071,846
Website: http://www.hirequestllc.com
Address: HireQuest, Inc.
111 Springhall Drive,
Goose Creek,
South Carolina, 29445,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM HQI Common Shares Nasdaq Capital Market US USD 17. Jul 2019
Number of employees
Current staff
Staff numbers
38
HireQuest employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 00:45
End of day share price update: 2019/11/13 00:00
Last earnings filing: 2019/06/18
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.