Hackett Group Inc
The company maintains a market price of $9.57, resulting in a market capitalization of $241.36 million. Its price-to-earnings ratio of 27.59 and price-to-book ratio of 2.36 suggest a relatively high valuation compared to book value and earnings. The enterprise value to EBITDA ratio of 19.89 and enterprise value to revenue ratio of 3.21 indicate a moderate valuation relative to operating performance and revenue. Profitability metrics show a return on equity of 8.56% and return on assets of 4.67%, which are below the industry median for Business Support Services. The operating margin of 16.12% (calculated from operating income of $12.52 million on revenue of $77.66 million) is also below the industry median, suggesting room for improvement in cost management and pricing power. The company's revenue is concentrated in a single business model focused on business process outsourcing and consulting services. Geographic exposure is not disclosed in the available data, but the company's operations are likely concentrated in North America given its listing and typical industry patterns. The lack of geographic diversification could pose a concentration risk if regional economic conditions deteriorate. Looking ahead, the company is projected to maintain stable revenue growth. The current fiscal year outlook indicates a revenue growth rate of 0.00%, with no significant changes expected in the next fiscal year. This flat growth trajectory is consistent with the company's mature business model and limited expansion into new markets. The risk assessment highlights medium liquidity risk due to negative net cash after subtracting total debt. The company has a low dilution risk, with no significant dilution sources identified in the available data. The debt-to-equity ratio of 0.26 and current ratio of 1.71 suggest a relatively conservative capital structure, but the negative net cash position indicates potential liquidity constraints. Recent events include analyst estimates showing a mean price target of $23.67 and a median price target of $24.00, with a mean recommendation of 1.67 (strong buy to hold). The absence of "hold" ratings and the presence of one strong-buy and two buy ratings suggest positive sentiment among analysts. No recent filings or transcripts were identified in the available data.
Business. Hackett Group Inc provides business process outsourcing and consulting services to help organizations improve efficiency and reduce costs.
Classification. The company is classified under the Industrials economic sector, Industrial & Commercial Services business sector, and Business Support Services industry with 92% confidence.
- The company's high price-to-earnings ratio and low return on equity suggest it is overvalued relative to earnings and equity returns.
- The business model is concentrated in a single service line, which increases exposure to market-specific risks.
- Analysts have a generally positive outlook, with a mean price target significantly above the current market price.
- The company's liquidity position is a concern due to negative net cash after debt.
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- Net cash is negative after subtracting total debt.