Robert Half (RHI) posted a net profit margin of 2.8%, slipping from 4.8% a year ago, while its earnings have contracted by 12.8% annually over the past five years. Despite this downward trend, earnings are forecast to increase by 24.75% per year over the next three years, considerably outpacing the US market’s projected 15.9% growth. With the company trading at a price-to-earnings ratio of 16.8x, well below both peer and industry averages, investors may see opportunity in the depressed share price if growth targets are hit.
See our full analysis for Robert Half.
The next section puts these headline numbers in context by comparing them with the dominant market narratives and perspectives found on Simply Wall St. This will highlight where expectations are met and where the numbers might tell a different story.
See what the community is saying about Robert Half
-
Analysts expect profit margins to climb from 3.2% today to 5.3% in three years, even as the company recovers from recent declines.
-
According to the analysts’ consensus view, the rebound in projected margins is underpinned by expanding demand for tech and finance talent and robust investment in AI-driven recruitment technology, which should lower costs and drive higher-quality placements.
-
This efficiency push is expected to boost productivity and market share, creating the potential for improved shareholder returns as hiring trends recover.
-
However, recurring revenue declines and elevated operating expenses highlight risks that could temper margin gains if growth fails to materialize as forecast.
-
See how analysts weigh shifting profit forecasts in the full Robert Half Consensus Narrative. 📊 Read the full Robert Half Consensus Narrative.
-
Total selling, general and administrative costs rose to 37.1% of revenue, up three percentage points from a year ago, outpacing both revenue growth and inflation.
-
Analysts’ consensus view highlights that rising costs, combined with shrinking gross margins, challenge the bullish case that productivity gains alone will deliver higher net margins.
-
Consensus acknowledges that new investments in digital capabilities, though promising, must overcome headwinds from rising overhead and a slower-than-hoped rebound in key business segments.
-
Bears in particular cite higher SG&A as a drag on profitability, signaling that Robert Half must carefully manage expenses to meet growth targets.
-
-
Robert Half trades at a 16.8x price-to-earnings ratio, significantly below the US Professional Services industry average of 25.4x and its peer group average of 21.4x.
-
Analysts’ consensus view contends that this discount, paired with a current share price of $26.19 versus a DCF fair value of $85.28, could attract value seekers if the company hits its profit growth targets, but the gap also reflects investor caution about recent negative earnings trends.
-
Investors are encouraged to sense check whether optimism about future growth justifies betting on mean reversion in valuation multiples.
-
Consensus sees the discounted multiple as both a potential entry point and a warning flag, given ongoing operational risks.
-