📊 HCKT Key Takeaways
Is Hackett Group, Inc.. (HCKT) a Good Investment?
While Hackett Group demonstrates exceptional gross margins (94.3%) and solid interest coverage, the company is experiencing declining revenue (-2.6% YoY), deeply negative free cash flow (-$7.5M), and deteriorating shareholder value (EPS -56.2% YoY). The disconnect between positive net income and negative operating cash flow raises concerns about earnings quality and sustainability, coupled with high debt leverage (1.19x D/E) relative to minimal cash reserves.
Fundamentals are stable but not expanding: revenue declined modestly, margins are mid‑single digit, and EPS fell sharply despite flat net income. Solid free cash flow, strong interest coverage, and high ROE support financial resilience, but growth reacceleration and margin stability are needed before a more constructive stance.
Why Buy Hackett Group, Inc.. Stock? HCKT Key Strengths
- Exceptional gross margin of 94.3% demonstrates strong pricing power and operational efficiency
- Solid interest coverage ratio of 8.9x indicates manageable debt service capability
- Healthy liquidity position with current and quick ratios at 1.88x
- Robust free cash flow (10.6% FCF margin) with low capex
- Healthy liquidity and coverage (1.72x current ratio, 13.7x interest coverage)
- High ROE (19%) indicating efficient capital use
HCKT Stock Risks: Hackett Group, Inc.. Investment Risks
- Critical: Negative operating cash flow (-$5.1M) and free cash flow (-$7.5M) despite positive accounting earnings signals potential quality-of-earnings issues
- Revenue declining year-over-year (-2.6%) with stagnant net income growth, indicating business contraction
- Severe shareholder dilution with EPS collapsed 56.2% YoY while net income remained flat; ROE and ROA remain weak at 6.5% and 2.1%
- High financial leverage (Debt/Equity 1.19x) with low cash buffer ($6.1M) relative to $78.8M long-term debt
- Top-line contraction (-2.6% YoY) and margin pressure (21.2% gross)
- EPS dilution/volatility (-56.2% YoY) despite flat net income
- Leverage (1.11x D/E) could limit flexibility if demand softens
Key Metrics to Watch
- Operating cash flow and free cash flow trends - resolution of cash burn despite profitability is critical
- Revenue growth trajectory - current decline must reverse to justify debt levels
- Debt reduction progress and refinancing needs - assess sustainability of current leverage
- Working capital management and cash conversion cycle - understand source of operational cash drain
- Revenue growth (YoY)
- Free cash flow margin
Hackett Group, Inc.. (HCKT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Hackett Group, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HCKT Profit Margin, ROE & Profitability Analysis
HCKT vs Services Sector: How Hackett Group, Inc.. Compares
How Hackett Group, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hackett Group, Inc.. Stock Overvalued? HCKT Valuation Analysis 2026
Based on fundamental analysis, Hackett Group, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hackett Group, Inc.. Balance Sheet: HCKT Debt, Cash & Liquidity
HCKT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hackett Group, Inc..'s revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $1.24 reflects profitable operations.
HCKT Revenue Growth, EPS Growth & YoY Performance
HCKT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $68.8M | $3.1M | $0.11 |
| Q3 2025 | $73.1M | $1.7M | $0.09 |
| Q2 2025 | $77.7M | $1.7M | $0.06 |
| Q1 2025 | $77.2M | $3.1M | $0.11 |
| Q3 2024 | $75.9M | $8.2M | $0.31 |
| Q2 2024 | $77.1M | $8.2M | $0.31 |
| Q1 2024 | $71.2M | $8.2M | $0.30 |
| Q3 2023 | $72.0M | $8.2M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hackett Group, Inc.. Dividends, Buybacks & Capital Allocation
HCKT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hackett Group, Inc.. (CIK: 0001057379)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HCKT
What is the AI rating for HCKT?
Hackett Group, Inc.. (HCKT) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HCKT's key strengths?
Claude: Exceptional gross margin of 94.3% demonstrates strong pricing power and operational efficiency. Solid interest coverage ratio of 8.9x indicates manageable debt service capability. ChatGPT: Robust free cash flow (10.6% FCF margin) with low capex. Healthy liquidity and coverage (1.72x current ratio, 13.7x interest coverage).
What are the risks of investing in HCKT?
Claude: Critical: Negative operating cash flow (-$5.1M) and free cash flow (-$7.5M) despite positive accounting earnings signals potential quality-of-earnings issues. Revenue declining year-over-year (-2.6%) with stagnant net income growth, indicating business contraction. ChatGPT: Top-line contraction (-2.6% YoY) and margin pressure (21.2% gross). EPS dilution/volatility (-56.2% YoY) despite flat net income.
What is HCKT's revenue and growth?
Hackett Group, Inc.. reported revenue of $68.8M.
Does HCKT pay dividends?
Hackett Group, Inc.. pays dividends, with $3.0M distributed to shareholders in the trailing twelve months.
Where can I find HCKT SEC filings?
Official SEC filings for Hackett Group, Inc.. (CIK: 0001057379) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HCKT's EPS?
Hackett Group, Inc.. has a diluted EPS of $0.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HCKT a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hackett Group, Inc.. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HCKT stock overvalued or undervalued?
Valuation metrics for HCKT: ROE of 6.5% (sector avg: 16%), net margin of 6.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy HCKT stock in 2026?
Our dual AI analysis gives Hackett Group, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HCKT's free cash flow?
Hackett Group, Inc..'s operating cash flow is $-5.1M, with capital expenditures of $2.4M. FCF margin is -10.9%.
How does HCKT compare to other Services stocks?
Vs Services sector averages: Net margin 6.2% (avg: 10%), ROE 6.5% (avg: 16%), current ratio 1.88 (avg: 1.5).