📊 HQI Key Takeaways
Is HQI a Good Investment? Thesis Analysis
HireQuest demonstrates exceptional operational profitability (20.7% net margin) and exceptional cash generation (39.3% FCF margin) with a fortress balance sheet (0.05x D/E, 3.15x current ratio), indicating a financially stable, cash-generative business. The 72% net income growth despite 5.7% revenue growth reveals strong operational leverage, though modest topline growth and cyclical staffing industry exposure present risk.
Why Buy HQI? Key Strengths
- Exceptional profitability margins (Operating Margin 20.5%, Net Margin 20.7%) well above industry norms for staffing services
- Outstanding cash flow generation (Free Cash Flow $12.0M, 39.3% FCF margin) indicates asset-light, cash-generative business model
- Conservative capital structure with minimal debt (D/E 0.05x, Long-term Debt $3.6M) and strong interest coverage (20.5x) providing financial flexibility
- Exceptional liquidity position (Current Ratio 3.15x, Quick Ratio 3.15x) with no solvency concerns
- Strong net income growth (72.4% YoY) demonstrating operational leverage and margin expansion
HQI Investment Risks to Consider
- Modest revenue growth (5.7% YoY) suggests limited market expansion or increased competitive pressure in staffing industry
- Cyclical business model vulnerable to economic downturns and labor market contractions
- Tight cash position ($3.9M) relative to $30.6M annual revenue may limit strategic flexibility or M&A opportunities
- Small-cap size with limited diversification creates vulnerability to sector-specific disruptions
- Elevated insider trading activity (8 Form 4 filings in 90 days) warrants monitoring for potential adverse signals
Key Metrics to Watch
- Revenue growth trajectory (target: acceleration above 5.7% YoY)
- Operating margin sustainability (monitor for margin compression if growth accelerates)
- Free cash flow maintenance (ensure 35%+ FCF margin is sustainable)
- Debt levels and leverage ratios (confirm disciplined capital allocation)
- Cash position and working capital efficiency (essential for cyclical business operations)
HQI Financial Metrics
💡 AI Analyst Insight
The 39.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.15x current ratio provides a solid financial cushion.
HQI Profitability Ratios
HQI vs Default Sector
How HireQuest, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HQI Overvalued or Undervalued?
Based on fundamental analysis, HireQuest, 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.
HQI Balance Sheet & Liquidity
HQI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HireQuest, Inc.'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.26 reflects profitable operations.
HQI Growth Metrics (YoY)
HQI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $8.1M | $1.5M | $0.10 |
| Q2 2025 | $7.3M | $1.1M | $0.08 |
| Q1 2025 | $7.0M | $1.4M | $0.10 |
| Q3 2024 | $8.9M | $1.5M | $0.10 |
| Q2 2024 | $8.2M | $2.0M | $0.15 |
| Q1 2024 | $7.8M | $1.6M | $0.12 |
| Q3 2023 | $7.4M | $1.5M | $0.11 |
| Q2 2023 | $7.2M | $2.0M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HQI Capital Allocation
HQI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HireQuest, Inc. (CIK: 0001140102)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HQI
What is the AI rating for HQI?
HireQuest, Inc. (HQI) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HQI's key strengths?
Claude: Exceptional profitability margins (Operating Margin 20.5%, Net Margin 20.7%) well above industry norms for staffing services. Outstanding cash flow generation (Free Cash Flow $12.0M, 39.3% FCF margin) indicates asset-light, cash-generative business model.
What are the risks of investing in HQI?
Claude: Modest revenue growth (5.7% YoY) suggests limited market expansion or increased competitive pressure in staffing industry. Cyclical business model vulnerable to economic downturns and labor market contractions.
What is HQI's revenue and growth?
HireQuest, Inc. reported revenue of $30.6M.
Does HQI pay dividends?
HireQuest, Inc. pays dividends, with $0.8M distributed to shareholders in the trailing twelve months.
Where can I find HQI SEC filings?
Official SEC filings for HireQuest, Inc. (CIK: 0001140102) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HQI's EPS?
HireQuest, Inc. has a diluted EPS of $0.45.
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 HQI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HireQuest, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HQI stock overvalued or undervalued?
Valuation metrics for HQI: ROE of 9.3% (sector avg: 15%), net margin of 20.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HQI stock in 2026?
Our dual AI analysis gives HireQuest, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HQI's free cash flow?
HireQuest, Inc.'s operating cash flow is $12.0M, with capital expenditures of N/A. FCF margin is 39.3%.
How does HQI compare to other Default stocks?
Vs Default sector averages: Net margin 20.7% (avg: 12%), ROE 9.3% (avg: 15%), current ratio 3.15 (avg: 1.8).