📊 HLI Key Takeaways
Is HLI a Good Investment? Thesis Analysis
HLI demonstrates exceptional financial health with strong profitability margins (20.3% operating margin), outstanding free cash flow generation ($395M annually), and a fortress balance sheet (0.06x debt/equity, $1.1B cash). However, net income growth is flat year-over-year with undefined revenue growth, reflecting cyclicality in investment advisory services tied to M&A activity, which limits upside without visibility on deal pipeline recovery.
Why Buy HLI? Key Strengths
- Superior cash generation with FCF margin of 19.9% and FCF exceeding net income by 21%, indicating efficient working capital and minimal capex requirements
- Fortress balance sheet with minimal leverage (0.06x debt/equity), $1.1B in cash, and long-term debt of only $133.5M providing substantial financial flexibility
- Consistent profitability with 16.4% net margin and 32.4% gross margin, demonstrating pricing power and cost discipline in investment advisory services
- Strategic capital allocation evidenced by 41.6% EPS growth despite flat net income, indicating meaningful share buybacks that enhance per-share value
HLI Investment Risks to Consider
- Revenue and net income growth stalling at 0.0% YoY, indicating headwinds in deal activity and M&A market cyclicality that may persist in weak market conditions
- Business cyclicality inherent to investment advisory sector with pronounced sensitivity to M&A volume, equity market activity, and economic sentiment
- Limited insider activity (only 2 Form 4 filings in 90 days) provides minimal insight into management confidence or capital deployment strategy
Key Metrics to Watch
- Revenue growth trajectory and YoY comparisons to assess M&A market recovery and deal pipeline momentum
- Free cash flow sustainability and capital allocation decisions (dividend, buybacks, debt reduction) amid flat organic growth
- Operating margin stability and headcount/compensation trends as proxy for cost management during potential market downturns
HLI Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HLI Profitability Ratios
HLI vs Default Sector
How HOULIHAN LOKEY, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HLI Overvalued or Undervalued?
Based on fundamental analysis, HOULIHAN LOKEY, INC. has mixed fundamental signals relative to the Default 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.
HLI Balance Sheet & Liquidity
HLI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HOULIHAN LOKEY, INC.'s revenue has grown significantly by 57% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.76 reflects profitable operations.
HLI Growth Metrics (YoY)
HLI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $634.4M | $95.3M | $1.39 |
| Q2 2026 | $575.0M | $93.5M | $1.37 |
| Q1 2026 | $513.6M | $88.9M | $1.30 |
| Q3 2025 | $511.1M | $70.8M | $1.04 |
| Q2 2025 | $467.0M | $67.0M | $0.99 |
| Q1 2025 | $415.8M | $61.4M | $0.90 |
| Q2 2024 | $456.5M | $60.7M | $0.87 |
| Q1 2024 | $415.8M | $61.4M | $0.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HLI Capital Allocation
HLI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HOULIHAN LOKEY, INC. (CIK: 0001302215)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HLI
What is the AI rating for HLI?
HOULIHAN LOKEY, INC. (HLI) has an AI rating of HOLD with 80% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HLI's key strengths?
Claude: Superior cash generation with FCF margin of 19.9% and FCF exceeding net income by 21%, indicating efficient working capital and minimal capex requirements. Fortress balance sheet with minimal leverage (0.06x debt/equity), $1.1B in cash, and long-term debt of only $133.5M providing substantial financial flexibility.
What are the risks of investing in HLI?
Claude: Revenue and net income growth stalling at 0.0% YoY, indicating headwinds in deal activity and M&A market cyclicality that may persist in weak market conditions. Business cyclicality inherent to investment advisory sector with pronounced sensitivity to M&A volume, equity market activity, and economic sentiment.
What is HLI's revenue and growth?
HOULIHAN LOKEY, INC. reported revenue of $2.0B.
Does HLI pay dividends?
HOULIHAN LOKEY, INC. pays dividends, with $134.9M distributed to shareholders in the trailing twelve months.
Where can I find HLI SEC filings?
Official SEC filings for HOULIHAN LOKEY, INC. (CIK: 0001302215) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HLI's EPS?
HOULIHAN LOKEY, INC. has a diluted EPS of $4.74.
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 HLI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HOULIHAN LOKEY, INC. has a HOLD rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HLI stock overvalued or undervalued?
Valuation metrics for HLI: ROE of 14.2% (sector avg: 15%), net margin of 16.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HLI stock in 2026?
Our dual AI analysis gives HOULIHAN LOKEY, INC. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HLI's free cash flow?
HOULIHAN LOKEY, INC.'s operating cash flow is $411.1M, with capital expenditures of $16.1M. FCF margin is 19.9%.
How does HLI compare to other Default stocks?
Vs Default sector averages: Net margin 16.4% (avg: 12%), ROE 14.2% (avg: 15%), current ratio N/A (avg: 1.8).