0.87%
5.94%
6.08%
24.85%
46.23%
77.03%
246.66%
AI Spotlight on HLI
Company Description
Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide.It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.The Corporate Finance segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as advise financial sponsors on various transactions.
The Financial Restructuring segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions.It also provides a range of advisory services, including structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing.The Financial and Valuation Advisory segment offers valuations of various assets, such as companies, illiquid debt and equity securities, and intellectual property.
It also provides fairness opinions in connection with M&A and other transactions, and solvency opinions in connection with corporate spin-offs and dividend recapitalizations; and other types of financial opinions.In addition, this segment offers dispute resolution services.It serves corporations, institutions, and governments.
The company was incorporated in 1972 and is headquartered in Los Angeles, California with offices in the United States, Europe, the Middle East, and the Asia-Pacific region.
Market Data
| Last Price | 181.72 |
| Change Percentage | 0.87% |
| Open | 181.35 |
| Previous Close | 180.16 |
| Market Cap ( Millions) | 12699 |
| Volume | 460160 |
| Year High | 192.1 |
| Year Low | 121.81 |
| M A 50 | 179.63 |
| M A 200 | 156.05 |
Financial Ratios
| FCF Yield | 3.95% |
| Dividend Yield | 1.24% |
| ROE | 18.09% |
| Debt / Equity | 22.03% |
| Net Debt / EBIDTA | -55.18% |
| Price To Book | 6.11 |
| Price Earnings Ratio | 35.77 |
| Price To FCF | 25.31 |
| Price To sales | 5.99 |
| EV / EBITDA | 26.38 |
News
- Jan -30 - Houlihan Lokey: Strong Earnings, But A Pricey Stock
- Jan -29 - Houlihan Lokey: Fiscal Q3 EPS Up 34.4%
- Jan -29 - Houlihan Lokey, Inc. (HLI) Q3 2025 Earnings Call Transcript
- Jan -28 - Houlihan Lokey (HLI) Surpasses Q3 Earnings and Revenue Estimates
- Jan -27 - Houlihan Lokey Strengthens Capital Markets Group With Veteran Hire
- Jan -22 - Should You Buy or Hold Houlihan Lokey Stock Before Q3 Earnings?
- Jan -16 - Houlihan Lokey (HLI) Stock Jumps 4.2%: Will It Continue to Soar?
- Jan -15 - Houlihan Lokey Grows Consumer Health Coverage Capabilities With Experienced Hire
- Jan -14 - Houlihan Lokey Announces Release Date for Third Quarter Results for Fiscal Year 2025
- Dec -30 - Wall Street Stories of 2024 Likely to Stay Hot in 2025: Key Picks
- Dec -24 - Houlihan Lokey: The Rising Star in Investment Banking
- Nov -11 - Is Houlihan Lokey (HLI) a Solid Growth Stock? 3 Reasons to Think "Yes"
- Nov -11 - Houlihan Lokey Bolsters Capital Markets Team With Senior Hire
- Nov -04 - Houlihan Lokey Further Expands Its Software Coverage Capabilities With Senior Hire
- Oct -31 - Houlihan Lokey: Mid-Market Demonstrates Resilience Again
- Oct -31 - Houlihan Lokey, Inc. (HLI) Q2 2025 Earnings Call Transcript
- Oct -31 - Houlihan Lokey (HLI) Tops Q2 Earnings and Revenue Estimates
- Oct -30 - Houlihan Lokey Acquires PSL
- Oct -30 - Houlihan Lokey Reports Second Quarter Fiscal 2025 Financial Results
- Sep -17 - Platinum Equity and Butterfly to Acquire Rise Baking Company
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Corporate Finance
Expected Growth : 10 %
What the company do ?
Corporate Finance from Houlihan Lokey, Inc. provides strategic advisory services to corporations, financial sponsors, and governments, focusing on M&A, restructuring, and capital markets transactions.
Why we expect these perspectives ?
Houlihan Lokey's Corporate Finance segment growth is driven by increasing M&A activity, strategic advisory services, and debt and equity capital markets transactions. Strong demand for restructuring and recapitalization services, as well as expansion into new markets and industries, also contribute to the 10% growth rate.
Segment n°2 -> Financial Restructuring
Expected Growth : 12 %
What the company do ?
Financial Restructuring from Houlihan Lokey, Inc. is a service that helps distressed companies reorganize debt, improve liquidity, and restore financial stability.
Why we expect these perspectives ?
Houlihan Lokey's 12% growth in Financial Restructuring is driven by increasing demand for debt advisory services, rising distressed debt opportunities, and expansion into new markets. The firm's expertise in complex restructuring cases, strong relationships with stakeholders, and strategic acquisitions also contribute to its growth.
Segment n°3 -> Financial and Valuation Advisory
Expected Growth : 9 %
What the company do ?
Houlihan Lokey's Financial and Valuation Advisory segment provides advice on mergers and acquisitions, restructuring, and valuations to corporations, investors, and lenders.
Why we expect these perspectives ?
Houlihan Lokey's 9% growth in Financial and Valuation Advisory is driven by increasing demand for M&A advisory services, expansion into new markets, and growth in restructuring and debt advisory practices. Additionally, the firm's investments in technology and data analytics have enhanced its service offerings, attracting new clients and increasing wallet share.
Houlihan Lokey, Inc. Products
| Product Range | What is it ? |
|---|---|
| Mergers and Acquisitions | Houlihan Lokey's Mergers and Acquisitions team advises clients on buying and selling companies, including negotiating deal terms, conducting due diligence, and structuring transactions. |
| Capital Markets | Houlihan Lokey's Capital Markets team helps clients raise capital through debt and equity offerings, including IPOs, follow-on offerings, and debt placements. |
| Restructuring and Reorganization | Houlihan Lokey's Restructuring and Reorganization team advises clients on debt restructuring, bankruptcy, and turnaround situations. |
| Financial Restructuring | Houlihan Lokey's Financial Restructuring team advises clients on debt restructuring, debt-for-equity swaps, and other financial restructuring transactions. |
| Valuation Advisory | Houlihan Lokey's Valuation Advisory team provides independent valuation opinions for financial reporting, tax, and transaction purposes. |
| Dispute Resolution | Houlihan Lokey's Dispute Resolution team provides expert testimony and advisory services in litigation and arbitration matters. |
Houlihan Lokey, Inc.'s Porter Forces
Threat Of Substitutes
Houlihan Lokey, Inc. operates in a niche market, providing specialized financial services, which reduces the threat of substitutes. However, the company still faces competition from other financial institutions and boutique firms.
Bargaining Power Of Customers
Houlihan Lokey, Inc.'s clients are primarily large corporations and financial institutions, which have limited bargaining power due to the specialized nature of the company's services.
Bargaining Power Of Suppliers
Houlihan Lokey, Inc. has a diverse range of suppliers, including technology providers, consultants, and other service providers, which reduces the bargaining power of individual suppliers.
Threat Of New Entrants
The financial services industry has high barriers to entry, including regulatory requirements, capital requirements, and the need for specialized expertise, which reduces the threat of new entrants.
Intensity Of Rivalry
Houlihan Lokey, Inc. operates in a highly competitive industry, with many established players, which increases the intensity of rivalry among firms.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 39.01% |
| Debt Cost | 3.95% |
| Equity Weight | 60.99% |
| Equity Cost | 7.36% |
| WACC | 6.03% |
| Leverage | 63.95% |
Houlihan Lokey, Inc. : Quality Control
Houlihan Lokey, Inc. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| LPLA | LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the … |
| PIPR | Piper Sandler Companies operates as an investment bank and institutional securities firm that serves corporations, private equity groups, public entities, non-profit entities, and institutional investors in the United States and … |
| PJT | PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. … |
| SNEX | StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. Its Commercial segment provides risk management and hedging, exchange-traded … |
| EVR | Evercore Inc., together with its subsidiaries, operates as an independent investment banking advisory firm in the United States, Europe, Latin America, and internationally. It operates through two segments, Investment Banking … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Piper Sandler
A-Score
1-Year Total Return ->
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PJT Partners
A-Score
1-Year Total Return ->
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StoneX
A-Score
1-Year Total Return ->
4
Houlihan Lokey
A-Score
1-Year Total Return ->
5
LPL Financial Holdings
A-Score
1-Year Total Return ->
6
