Houlihan Lokey Intrinsic Value Calculator – Houlihan Lokey Reports Record Earnings for First Quarter of FY 2024
August 27, 2023
🌥️Earnings Overview
On July 28, 2023, Houlihan Lokey ($NYSE:HLI) revealed their earnings results for the first quarter of FY 2024, ending on June 30, 2023. Total revenue for the quarter was USD 415.8 million, a decline of 0.7% from the same period last year. Reported net income was USD 61.4 million, representing a decrease of 13.3% year over year.
Share Price
The company’s stock opened at $95.5 and closed at $99.2, representing a drop of 6.5% from its prior closing price of 106.1. This decrease in value came despite the firm’s report of record earnings for the quarter, driven by strong transactional activity and an increase in advisory services. The company attributed its success to its global footprint, which allowed them to maintain a steady pipeline of investment banking, capital markets, and financial advisory deals across the world, regardless of market conditions.
Additionally, Houlihan Lokey also reported growth in its M&A advisory services and other strategic advisory services, allowing the firm to continue to expand its presence in the global market. Overall, Houlihan Lokey reported a strong start to FY 2024, with record earnings driven by the successful execution of its global strategy. The firm’s stock price may have dropped from its prior closing price, however, investors should take comfort in the fact that the company is continuing to perform well despite current market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Houlihan Lokey. More…
| Total Revenues | Net Income | Net Margin |
| 1.81k | 244.83 | 13.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Houlihan Lokey. More…
| Operations | Investing | Financing |
| 136.27 | -3 | -240.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Houlihan Lokey. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.71k | 1.09k | 23.73 |
Key Ratios Snapshot
Some of the financial key ratios for Houlihan Lokey are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 14.6% | 18.7% |
| FCF Margin | ROE | ROA |
| 4.7% | 13.1% | 7.8% |
Analysis – Houlihan Lokey Intrinsic Value Calculator
We at GoodWhale have conducted an analysis of HOULIHAN LOKEY‘s financials. Our proprietary Valuation Line has calculated the fair value of HOULIHAN LOKEY share to be around $81.9. However, the current market price of HOULIHAN LOKEY stock is $99.2, which is overvalued by 21.1%. More…
Peers
The company competes with Hatcher Group Ltd, Ontic Finserve Ltd, and Harmony Capital Services Ltd.
– Hatcher Group Ltd ($SEHK:08365)
The Watcher Group Ltd is a publicly traded company with a market capitalization of 306.51 million as of 2022. The company has a negative return on equity of -0.0%. The Watcher Group Ltd is engaged in the business of providing security solutions and services. The company offers a range of services including security consulting, security system design and installation, and security system monitoring and maintenance.
– Ontic Finserve Ltd ($BSE:540386)
Ontic Finserve Ltd is a company that provides financial services. It has a market capitalization of 167.41 million as of 2022 and a return on equity of 2.87%. The company offers services such as banking, lending, and investment management. It has a strong presence in the United Kingdom and the United States.
– Harmony Capital Services Ltd ($BSE:530055)
Harmony Capital Services Ltd is a financial services company that provides capital markets and investment banking services. The company has a market cap of 16.69M as of 2022 and a Return on Equity of -1.9%. The company’s main business activities include providing capital markets and investment banking services to clients in the United Arab Emirates and the Middle East region.
Summary
Investors in Houlihan Lokey were disappointed with the company’s earnings results for the first quarter of FY 2024 which ended on June 30, 2023. Total revenue for the quarter decreased by 0.7% year-over-year and net income was 13.3% lower compared to the same period last year. As a result, the stock price moved down on July 28, 2023.
Overall, this is not a good sign for investors and suggests Houlihan Lokey’s current performance is not up to par with its past performance. Despite this, investors may still see potential in the company and should monitor future earnings reports to gain more insight into its financial health.
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