Take a Full Look at Robert Half

by Peter Cohan | July 22, 2011 12:45 pm

Second-quarter profit at temporary employee services firm Robert Half (NYSE:RHI[1]) more than tripled and the company’s financial report beat Wall Street’s predictions in many categories. With its stock shooting up more than 15% on the news, is now a good time to buy Robert Half’s shares, or have investors missed their chance?

Here are four reasons to consider this stock:

 One big negative is Robert Half’s declining sales, profits and cash. Its revenue fell at an average rate of 1% over the last five years and its net income has plunged at a 23% annual rate over that period. It has no debt but its cash has declined at an 8.4% annual rate from $447 million (2009) to $315 million (2010).

The last five years have been rough for Robert Half but it appears to have turned the corner. At its current valuation, the opportunity cost of avoiding this stock could be significant.

Peter Cohan has no financial interest in the securities mentioned.

  1. RHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=RHI
  2. all of its last 5: http://www.smartmoney.com/quote/RHI/?story=earningsForecast
  3. P/E of 40.2: http://investing.money.msn.com/investments/stock-price?Symbol=RHI&ocid=qbeb
  4. 54.1% in 2012: http://www.nasdaq.com/earnings/peratio_growth.asp?symbol=RHI&selected=RHI

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