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HireQuest, Inc. (HQI)

Company Dividend Discount ModelIndustry: Staffing & Employment ServicesSector: Industrials

Valuation Snapshot

Stable Growth$3.51 - $5.05$4.26
Multi-Stage$5.75 - $6.31$6.02
Blended Fair Value$5.14
Current Price$9.62
Upside-46.54%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.240.240.240.220.100.000.500.080.000.00
YoY Growth--0.57%0.88%5.41%131.36%0.00%-100.00%498.05%0.00%0.00%0.00%
Dividend Yield--2.02%1.84%1.10%1.17%0.56%0.00%12.77%1.47%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6.95
(-) Cash Dividends Paid (M)2.53
(=) Cash Retained (M)4.42
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1.390.870.52
Cash Retained (M)4.424.424.42
(-) Cash Required (M)-1.39-0.87-0.52
(=) Excess Retained (M)3.033.553.90
(/) Shares Outstanding (M)13.9813.9813.98
(=) Excess Retained per Share0.220.250.28
LTM Dividend per Share0.180.180.18
(+) Excess Retained per Share0.220.250.28
(=) Adjusted Dividend0.400.430.46
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.51$4.26$5.05
Upside / Downside-63.51%-55.69%-47.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6.956.886.816.746.676.616.81
Payout Ratio36.36%47.08%57.81%68.54%79.27%90.00%92.50%
Projected Dividends (M)2.533.243.944.625.295.956.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)2.942.973.00
Year 2 PV (M)3.243.313.37
Year 3 PV (M)3.453.563.67
Year 4 PV (M)3.593.733.89
Year 5 PV (M)3.663.854.05
PV of Terminal Value (M)63.4966.7970.24
Equity Value (M)80.3684.2188.21
Shares Outstanding (M)13.9813.9813.98
Fair Value$5.75$6.02$6.31
Upside / Downside-40.26%-37.40%-34.42%

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