Un plan de compensare a executivului de calitate reduce riscul de a investi în Robert Half International

Fifteen stocks made July’s Exec Comp Aligned with ROIC Model Portfolio, available to members as of July 14, 2022.

Recapitulare de la alegerile din iunie

The Exec Comp Aligned with ROIC Model Portfolio (+0.7%) outperformed the S&P 500 (+0.4%) from June 15, 2022, through July 12, 2022. The best performing stock in the portfolio was up 11%. Overall, eight out of the 15 Exec Comp Aligned with ROIC Stocks outperformed the S&P 500 from June 15, 2022, through July 12, 2022.

Acest portofoliu model include doar acțiuni care obțin un rating atractiv sau foarte atractiv și care aliniază compensarea directorilor cu îmbunătățirea rentabilității investiționale. Cred că această combinație oferă o listă unică de idei lungi, bine selectată, deoarece rentabilitatea capitalului investit (ROIC) este principalul motor al creării de valoare pentru acționari.

New Feature Stock for July: Robert Half International
RHI

Robert Half International, Inc. (RHI) is the featured stock in July’s Exec Comp Aligned with ROIC Model Portfolio.

After falling in 2020 due to the pandemic-driven decline in demand for its services, Robert Half’s net operating profit after tax (NOPAT) over the trailing-twelve-months (TTM) has risen above pre-pandemic levels. Longer term, Robert Half has grown revenue and NOPAT by 6% and 14% compounded annually, respectively, over the past ten years. See Figure 1. The company’s NOPAT margin rose from 4% in 2011 to 9% TTM, while invested capital turns improved from 3.7 to 5.2 over the same time. Rising NOPAT margins and invested capital turns drove the company’s ROIC from 15% in 2011 to 48% TTM.

Figure 1: Robert Half’s NOPAT & Revenue Growth: 2011 – TTM

Compensarea executivului aliniază corect stimulentele executivului

Robert Half’s executive compensation plan aligns the interests of management with those of shareholders by tying awarded performance share units (PSUs) to the company’s three-year cumulative ROIC ranking relative to a peer group.

Robert Half’s inclusion of ROIC as a performance goal has helped create shareholder value through rising ROIC and economic earnings. Robert Half’s ROIC improved from 30% in 2017 to 48% over the TTM and the company’s economic earnings rose from $309 million to $559 million over the same period.

Figure 2: Robert Half’s ROIC: 2017 – TTM

Robert Half Is Undervalued

At its current price of $84/share, RHI has a price-to-economic book value (PEBV) ratio of 0.9. This ratio means the market expects Robert Half’s NOPAT to permanently fall by 10%. This expectation seems overly pessimistic for a company that has grown NOPAT by 14% compounded annually over the past 10 years and 9% compounded annually over the past two decades.

If Robert Half’s NOPAT margin falls to its pre-pandemic three-year average (2017 – 2019), of 8% (vs. 9% TTM), and the company grows NOPAT by just 4% compounded annually over the next 10 years, the stock would be worth $100/share today – a 19% upside. Vedeți matematica din spatele acestui scenariu DCF invers. În cazul în care compania crește NOPAT mai în concordanță cu ratele de creștere istorice, stocul are și mai mult avantaj.

Detalii critice găsite în documente financiare de tehnologia Robo-Analyst a firmei mele

Below are specifics on the adjustments I make based on Robo-Analyst findings in Robert Half’s 10-Q’s and 10-K:

Declarația de venit: am făcut ajustări de 78 de milioane de dolari, cu un efect net de eliminare a 44 de milioane de dolari din veniturile neexploatare (1% din venituri).

Balance Sheet: I made $1.6 billion in adjustments to calculate invested capital with a net decrease of $439 million. One of the largest adjustments was $1.0 billion (65% of reported net assets) in deferred compensation assets.

Valuation: I made $476 million in adjustments with a net effect of decreasing shareholder value by $64 million. Apart from total debt, the most notable adjustment to shareholder value was $206 million in excess cash. This adjustment represents 2% of Robert Half’s market cap.

Dezvăluire: David Trainer, Kyle Guske II, Matt Shuler și Brian Pellegrini nu primesc nicio compensație pentru a scrie despre un anumit stoc, stil sau temă.