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1. Company Snapshot

1.a. Company Description

HireRight Holdings Corporation provides technology-driven workforce risk management and compliance solutions worldwide.The company offers background screening, verification, identification, monitoring, and drug and health screening services for customers.It provides its services through software and data platform that integrates into its customers' human capital management systems enabling workflows for workforce hiring, onboarding, and monitoring.


The company was incorporated in 1990 and is based in Nashville, Tennessee.

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1.b. Last Insights on HRT

HireRight Holdings Corporation's 1.0% performance over the past 3 months is attributed to the ongoing legal issues and class action lawsuits related to its acquisition. The company's financial performance has been impacted by the uncertainty surrounding the lawsuits, leading to a decline in investor confidence and a subsequent decrease in stock value.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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MERGER INVESTIGATION ALERT: Kaskela Law LLC Announces Investigation of HireRight Holdings Corp. (NYSE: HRT) and Encourages Investors to Contact the Firm

Jun -04

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Class Action Filed Against HireRight Holdings Corporation (HRT) - June 3, 2024 Deadline to Join – Contact Levi & Korsinsky

Jun -04

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SHAREHOLDER NEWS: Johnson Fistel Investigates Proposed Sale of HireRight; Are Shareholders Getting a Fair Deal?

Jun -03

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Investors who lost money on HireRight Holdings Corporation(HRT) should contact Levi & Korsinsky about pending Class Action - HRT

Jun -01

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SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in HireRight Holdings Corporation of Class Action Lawsuit and Upcoming Deadlines - HRT

Jun -01

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HOMESTREET INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of HomeStreet, Inc. - HMST

May -31

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The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against HireRight Holdings Corporation (HRT)

May -31

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Class Action Filed Against HireRight Holdings Corporation (HRT) - June 3, 2024 Deadline to Join - Contact Levi & Korsinsky

May -30

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.79%)

6. Segments

Service

Expected Growth: 6.5%

HireRight Holdings Corporation's 6.5% growth is driven by increasing demand for pre-employment screening services, expansion into new markets, and strategic partnerships. The company's innovative solutions, such as AI-powered background checks, also contribute to its growth. Additionally, the rise of the gig economy and growing concerns about workplace safety and compliance are fueling demand for HireRight's services.

Surcharge

Expected Growth: 7.5%

Surcharge from HireRight Holdings Corporation driven by 7.5% growth, attributed to increasing demand for background checks and screening services, expansion into new markets, and strategic partnerships. Additionally, the rise of the gig economy and growing need for compliance with regulations have contributed to the surge in demand for HireRight's services.

7. Detailed Products

Background Checks

Comprehensive background checks for employers to verify candidate credentials and ensure a safe work environment

Drug and Health Screening

Drug testing and health screening services to ensure a safe and healthy workforce

Employment Verification

Verification of employment history, including dates of employment, job titles, and salary information

Education Verification

Verification of educational credentials, including degrees earned and institutions attended

License and Certification Verification

Verification of professional licenses and certifications, including medical, legal, and other specialized licenses

International Screening

Background checks and verification services for international candidates and employees

Compliance and Risk Management

Compliance and risk management solutions to help employers mitigate risk and ensure regulatory compliance

8. HireRight Holdings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for HireRight Holdings Corporation is moderate due to the presence of alternative background check providers.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of HireRight's services and the lack of alternative providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of data and technology services.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the background check industry.

Intensity Of Rivalry

The intensity of rivalry is moderate due to the presence of several established players in the industry, but with opportunities for differentiation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.06%
Debt Cost 6.68%
Equity Weight 37.94%
Equity Cost 7.96%
WACC 7.17%
Leverage 163.58%

11. Quality Control: HireRight Holdings Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Barrett Business Services

A-Score: 6.0/10

Value: 5.9

Growth: 5.6

Quality: 6.0

Yield: 2.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Heidrick & Struggles

A-Score: 5.2/10

Value: 4.9

Growth: 4.1

Quality: 5.6

Yield: 3.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Kforce

A-Score: 5.1/10

Value: 7.0

Growth: 4.4

Quality: 6.5

Yield: 7.0

Momentum: 0.0

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Kelly Services

A-Score: 4.3/10

Value: 8.6

Growth: 2.0

Quality: 4.2

Yield: 4.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
HireRight

A-Score: 4.1/10

Value: 6.4

Growth: 7.1

Quality: 3.4

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

Stock-Card
BGSF

A-Score: 4.0/10

Value: 8.1

Growth: 3.3

Quality: 3.0

Yield: 8.0

Momentum: 0.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.36$

Current Price

14.36$

Potential

-0.00%

Expected Cash-Flows