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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1603
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$14.4B
Scott L. Beiser
Houlihan Lokey, Inc. provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services. The Financial Restructuring segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. Financial and Valuation Advisory segment offers valuations of various assets, such as companies, illiquid debt and equity securities, and intellectual property.
Headcount
2.3K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = HLI ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$HLI HOULIHAN LOKEY, INC. | 53 | 82 | 57 | 35 | 27.8x | 20.1x | 18.4% | 10.7% | 32.1% | 20.4% | 16.1% | 24.7% | 1.1% | 72.0x | $14.4B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
HOULIHAN LOKEY, INC. (HLI) receives a "Hold" rating with a composite score of 52.5/100. It ranks #1603 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
Los Angeles, California
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for HLI.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 82 | 98 | -16DRAG |
| MOMENTUM | 35 | 31 | +4NEUTRAL |
| VALUATION | 57 | 79 | -22DRAG |
| INVESTMENT | 27 | 30 | -3NEUTRAL |
| STABILITY | 48 | 47 | +1NEUTRAL |
| SHORT INT | 69 | 83 | -14DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 18.4% (sector 9.0%)
GM 32% vs sector 78%, OM 20% vs sector 18%
Capital turnover N/A
Rev growth 25%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate HOULIHAN LOKEY, INC. (HLI) as a Hold with a composite score of 52.5/100 at a current price of $165.89. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
HOULIHAN LOKEY, INC. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 52.5/100 places it at rank #1603 in our full universe.
Narrow
Medium
Standard
Fair Value
Returns on equity of 18.4% exceed cost of capital.
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
HOULIHAN LOKEY, INC. represents a hold based on multi-factor quantitative performance.
Our model assigns HOULIHAN LOKEY, INC. a Hold rating, with a composite score of 52.5/100 and 3 out of 5 stars. Ranked #1603 of 7,333 stocks, HLI presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
HLI earns a quality score of 82/100, indicating above-average business quality. The company reports a return on equity of 18.4% (sector avg: 9.0%), gross margins of 32.1% (sector avg: 77.7%), net margins of 16.1% (sector avg: 21.9%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
HLI's value score of 57/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 27.81x, an EV/EBITDA of 20.12x, a P/B ratio of 5.11x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
HOULIHAN LOKEY, INC.'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 24.7% vs. a sector average of 10.7% and a return on assets of 10.7% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
HLI is currently showing below-average momentum at 35/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 24.7% year-over-year, while a beta of 0.97 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 48/100, HLI exhibits average financial resilience. Key stability metrics include a beta of 0.97 and a debt-to-equity ratio of 72.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
HLI carries a short interest score of 69/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 72.00x). At $14.4B market cap (large-cap), HOULIHAN LOKEY, INC. offers reasonable institutional liquidity.
HLI offers a modest dividend yield of 1.1%. This compares to a sector average dividend yield of 2.0%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
HOULIHAN LOKEY, INC. is a large-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #1603 of 7,333 overall (78th percentile). Key comparisons include ROE of 18.4% exceeding the 9.0% sector median and operating margins of 20.4% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While HLI currently exhibits a HOLD profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
Key factor gap
Quality (82) vs Investment (27) — closing this gap could shift the rating.
EV/EBITDA 159% ABOVE SECTOR MEDIAN
ROE 104% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 59% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Oportun Financial (OPRT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Houlihan Lokey (HLI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Houlihan Lokey reported Q1 FY2026 earnings with non-GAAP EPS of $2.14, exceeding analyst expectations. All three advisory segments showed revenue growth, though overall revenue missed estimates. The company benefited from a remarkably low tax rate and continued expansion in key talent areas.
Houlihan Lokey, an independent financial advisory services firm, reported strong Q3 results, exceeding analyst expectations. The company saw revenue growth of 24% year-over-year, driven by growth across its core service lines, including corporate finance, financial restructuring, and financial and valuation advisory. Management remains optimistic about the company's outlook, focusing on middle-market M&A and strategic expansion through acquisitions and AI integration.
Houlihan Lokey's (HLI) fiscal fourth-quarter results benefit from the growing financial restructuring business. However, rising expenses partially offset the positives.