A Business at a Glance
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HOULIHAN LOKEY, INC.
HLI
$9.6B
Mkt Cap
$140.23
+1.76%
HOULIHAN LOKEY, INC. (HLI) has a current P/E ratio of 21.5, compared to its historical median P/E of 16.4. The stock is currently considered Fair based on its historical valuation range.
HOULIHAN LOKEY, INC. (HLI) has a 5-year average return on invested capital (ROIC) of 20.4%. This indicates strong capital allocation and a potential competitive advantage.
HOULIHAN LOKEY, INC. (HLI) has a market capitalization of $9.6B. It is classified as a mid-cap stock.
Yes, HOULIHAN LOKEY, INC. (HLI) pays a dividend with a trailing twelve-month yield of 1.81%. The company also returns capital through share buybacks, with a buyback yield of 1.83%.
Based on historical P/E analysis, HOULIHAN LOKEY, INC. (HLI) appears fair. The current P/E of 21.5 is 31% above its historical median of 16.4. The estimated fair value CAGR (P/E method) is 9.4%.
HOULIHAN LOKEY, INC. (HLI) operates in the Investment Advice industry, within the Financials sector.
HOULIHAN LOKEY, INC. (HLI) reported annual revenue of $2.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
Houlihan Lokey, Inc., established in 1972, is a leading global independent investment bank providing mergers and acquisitions advisory, capital markets services, financial restructurings and liability management, and financial and valuation advisory to corporations, financial sponsors, and government agencies across the Americas, Europe, Asia, Australia, and the Middle East. The firm operates through three primary business segments: Corporate Finance (which includes M&A advisory and Capital Solutions), Financial Restructuring, and Financial and Valuation Advisory (FVA), serving a diverse client base with an integrated platform that combines rigorous analytical expertise with differentiated advisory capabilities. The business model is transaction-driven and fee-based, with revenue generation dependent on deal volume, complexity, and client engagement across multiple industry verticals and geographies. The firm maintains a significant presence in the U.S. market while pursuing expansion in Europe and other international regions, with a strategic focus on building capabilities through organic hiring of senior talent and targeted acquisitions. Houlihan Lokey differentiates itself through its independent status, specialized expertise across restructuring and M&A advisory, and a diversified business model that provides resilience across varying market cycles and economic conditions.
【M&A recovery and restructuring resilience】 Management expects continued momentum in Corporate Finance driven by improving M&A markets, accelerating private equity activity, and strong backlog visibility into fiscal 2027, with particular confidence in deal activity and transaction volumes. Financial Restructuring is anticipated to perform at elevated levels in fiscal 2027 despite an improving market environment, supported by multiple tailwinds including widening credit spreads, private credit dislocation, and energy volatility, with management noting this may represent a structural floor for the business rather than a cyclical trough. The firm expects to maintain its long-term adjusted compensation expense ratio target of 61.5% and anticipates adjusted non-compensation expenses to grow at similar rates to fiscal 2026, with continued investment in technology capabilities that benefit multiple business lines. Management remains optimistic about the fundamental trajectory of the business for fiscal 2027 while acknowledging near-term variability from deal-closing timing and geopolitical uncertainties, and continues to prioritize accretive acquisitions as a capital allocation priority alongside share repurchases.
| Metric | Target | Period |
|---|---|---|
| Adjusted compensation expense ratio | 61.5% | FY2027 |
| Adjusted non-compensation expense growth | Similar to fiscal 2026 growth rate | FY2027 |
| Adjusted effective tax rate (Q1 FY2027) | Approximately half of Q4 FY2026 rate | Q1 FY2027 |
Adjusted compensation expense ratio (FY2027): “We expect to maintain our long-term target of 61.5% for our adjusted compensation expense ratio for fiscal 2027.”
Adjusted non-compensation expense growth (FY2027): “We expect to see similar growth in adjusted non-compensation expenses in fiscal 2027.”
Adjusted effective tax rate (Q1 FY2027) (Q1 FY2027): “Based on where our stock is trading today, we think that benefit may reduce our adjusted effective tax rate in our first quarter for fiscal 2027 to about half of our fourth quarter adjusted effective tax rate.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 2.6B | 2.6B | 2.4B | 1.9B | 1.8B | 2.3B |
| Net Income | 426M | 426M | 400M | 280M | 254M | 438M |
| EPS | $6.22 | $6.22 | $5.82 | $4.11 | $3.76 | $6.41 |
| Free Cash Flow | 682M | 682M | 809M | 262M | 86M | 728M |
| ROIC | 34.5% | 18.8% | 19.9% | 16.2% | 16.6% | 30.4% |
| Gross Margin | - | - | 32.3% | 29.8% | 30.8% | 35.0% |
| Debt/Equity | 0.00 | 0.79 | 0.76 | 0.73 | 0.84 | 1.00 |
| Dividends/Share | $2.54 | $2.54 | $2.41 | $2.18 | $2.08 | $1.68 |
| Operating Income | 527M | 527M | 503M | 373M | 342M | 613M |
| Operating Margin | 20.1% | 20.1% | 21.0% | 19.5% | 18.9% | 27.0% |
| ROE | 18.2% | 18.8% | 19.9% | 16.2% | 16.6% | 31.0% |
| Shares Outstanding | 68M | 68M | 69M | 68M | 68M | 68M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 0 | N/A | 872M | 963M | 1.1B | 1.2B | 1.5B | 2.3B | 1.8B | 1.9B | 2.4B | 2.6B | 2.6B |
| Gross Margin | N/A | N/A | 27.7% | 28.8% | 28.2% | 27.8% | 34.2% | 35.0% | 30.8% | 29.8% | 32.3% | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 475M | 462M | 582M | 637M | 692M | 738M | 971M | 1.4B | 1.1B | 1.2B | 1.5B | 1.6B | 1.6B |
| EBIT | 129M | 126M | 182M | 214M | 219M | 230M | 408M | 613M | 342M | 373M | 503M | 527M | 527M |
| Op. Margin | N/A | N/A | 20.9% | 22.3% | 20.2% | 19.8% | 26.8% | 27.0% | 18.9% | 19.5% | 21.0% | 20.1% | 20.1% |
| Net Income | 80M | 70M | 108M | 172M | 159M | 184M | 313M | 438M | 254M | 280M | 400M | 426M | 426M |
| Net Margin | N/A | N/A | 12.4% | 17.9% | 14.7% | 15.9% | 20.5% | 19.3% | 14.0% | 14.6% | 16.7% | 16.3% | 16.3% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 10.4% | 9.0% | 14.6% | 21.2% | 17.8% | 18.9% | 25.4% | 30.4% | 16.6% | 16.2% | 19.9% | 18.8% | 34.5% |
| ROE | 10.4% | 9.5% | 15.7% | 21.8% | 18.2% | 19.6% | 26.4% | 31.0% | 16.6% | 16.2% | 19.9% | 18.8% | 18.2% |
| ROA | 7.0% | 6.1% | 8.8% | 12.3% | 11.2% | 11.8% | 15.2% | 16.5% | 8.7% | 9.1% | 11.4% | 10.5% | 9.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 197M | 12M | 252M | 251M | 224M | 288M | 580M | 737M | 136M | 328M | 849M | 704M | 704M |
| Free Cash Flow | 192M | 2.3M | 238M | 243M | 218M | 267M | 566M | 728M | 86M | 262M | 809M | 682M | 682M |
| Owner Earnings | 168M | -31M | 204M | 196M | 153M | 239M | 502M | 654M | -79M | 229M | 705M | 519M | 519M |
| CapEx | 4.7M | 9.4M | 14M | 7.7M | 6.7M | 21M | 14M | 8.7M | 51M | 67M | 40M | 22M | 22M |
| Maint. CapEx | 5.5M | 7.5M | 8.9M | 7.9M | 14M | 17M | 15M | 49M | 58M | 29M | 41M | 43M | 43M |
| Growth CapEx | 0 | 1.9M | 5.6M | 0 | 0 | 3.4M | 0 | 0 | 0 | 38M | 0 | 0 | 0 |
| D&A | 5.5M | 7.5M | 8.9M | 7.9M | 14M | 17M | 15M | 49M | 58M | 29M | 41M | 43M | 43M |
| CapEx/OCF | N/A | 80.1% | 5.7% | 3.1% | 3.0% | 7.2% | 2.4% | 1.2% | 37.2% | 20.3% | 4.7% | N/A | 3.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 2.2M | 114M | 55M | 52M | 67M | 81M | 92M | 115M | 140M | 148M | 165M | 174M | 174M |
| Dividend Yield | N/A | 9.7% | 3.8% | 2.3% | 2.6% | 2.9% | 2.4% | 2.0% | 2.5% | 2.1% | 1.6% | N/A | 1.8% |
| Share Buybacks | 0 | 0 | 0 | 18M | 70M | 30M | 102M | 305M | 49M | 25M | 53M | 175M | 175M |
| Buyback Yield | N/A | N/A | N/A | 0.6% | 2.7% | 1.1% | 2.4% | 5.3% | 0.8% | 0.3% | 0.5% | 0.0% | 1.8% |
| Stock-Based Comp | 23M | 35M | 39M | 47M | 57M | 31M | 62M | 34M | 157M | 71M | 102M | 143M | 143M |
| Debt Repayment | 0 | 3.0M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | -90M | -268M | -404M | -380M | -479M | -1000M | N/A | N/A | N/A | N/A | N/A | -1.2B |
| Cash & Equiv. | 89M | 166M | 300M | 207M | 286M | 380M | 847M | 834M | 714M | 721M | 971M | 1.2B | 1.2B |
| Long-Term Debt | N/A | 77M | 33M | 12M | 31M | 37M | 56M | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | 0.49 | 0.12 | 0.04 | 0.01 | 0.03 | 0.04 | 0.04 | 1.00 | 0.84 | 0.73 | 0.76 | 0.79 | 0.00 |
| Interest Coverage | 508.5 | 137.1 | 225.8 | 3458.3 | N/A | 218.9 | 412.7 | 612.9 | 57.9 | 644.6 | 368.7 | N/A | N/A |
| Equity | 823M | 651M | 727M | 853M | 891M | 984M | 1.4B | 1.4B | 1.6B | 1.8B | 2.2B | 2.3B | 2.3B |
| Total Assets | 1.2B | 1.1B | 1.4B | 1.4B | 1.4B | 1.7B | 2.4B | 2.9B | 3.0B | 3.2B | 3.8B | 4.3B | 4.3B |
| Total Liabilities | 404M | 417M | 655M | 566M | 535M | 693M | 1.0B | 1.4B | 1.4B | 1.3B | 1.6B | 1.9B | 1.9B |
| Intangibles | 11M | 15M | 715M | 723M | 795M | 813M | 195M | 247M | 203M | 197M | 213M | 204M | 204M |
| Retained Earnings | 171M | 29M | 87M | 207M | 276M | 377M | 600M | 922M | 1.0B | 1.2B | 1.4B | 1.6B | 1.6B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.33 | 1.10 | 1.63 | 2.60 | 2.42 | 2.80 | 4.55 | 6.41 | 3.76 | 4.11 | 5.82 | 6.22 | 6.22 |
| Owner EPS | 2.79 | -0.49 | 3.07 | 2.95 | 2.33 | 3.64 | 7.31 | 9.58 | -1.17 | 3.36 | 10.27 | 7.58 | 7.58 |
| Book Value | 13.70 | 10.27 | 10.93 | 12.87 | 13.56 | 15.00 | 20.13 | 21.14 | 23.86 | 26.93 | 31.67 | 34.23 | 34.23 |
| Cash Flow/Share | 3.27 | 0.18 | 3.79 | 3.78 | 3.41 | 4.38 | 8.44 | 10.79 | 2.02 | 4.82 | 12.36 | 10.29 | 6.84 |
| Dividends/Share | 0.04 | 1.80 | 0.83 | 0.79 | 1.02 | 1.23 | 1.34 | 1.68 | 2.08 | 2.18 | 2.41 | 2.54 | 2.54 |
| Shares Out. | 60.1M | 63.4M | 66.5M | 66.3M | 65.7M | 65.6M | 68.7M | 68.3M | 67.6M | 68.2M | 68.7M | 68.4M | 68.4M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | 17.5 | 17.2 | 14.3 | 16.4 | 14.8 | 13.5 | 13.2 | 22.7 | 30.3 | 26.8 | N/A | 22.5 |
| P/FCF | N/A | 523.3 | 7.9 | 10.1 | 12.0 | 10.2 | 7.5 | 7.9 | 67.4 | 32.5 | 13.2 | N/A | 14.1 |
| EV/EBIT | N/A | 9.0 | 8.8 | 9.6 | 10.2 | 9.8 | 7.9 | 7.9 | N/A | N/A | N/A | N/A | 16.0 |
| Price/Book | N/A | N/A | N/A | 2.9 | 2.9 | 2.8 | 3.1 | 4.0 | 3.6 | 4.6 | 4.9 | N/A | 4.1 |
| Price/Sales | N/A | N/A | N/A | 2.3 | 12.4 | 4.2 | 2.5 | 2.6 | 3.1 | 3.6 | 4.4 | N/A | 3.7 |
| FCF Yield | N/A | 0.2% | 12.7% | 9.9% | 8.3% | 9.8% | 13.4% | 12.6% | 1.5% | 3.1% | 7.6% | N/A | 7.1% |
| Market Cap | N/A | 1.2B | 1.9B | 2.5B | 2.6B | 2.7B | 4.2B | 5.8B | 5.8B | 8.5B | 10.7B | 0 | 9.6B |
| Avg. Price | N/A | 18.64 | 21.90 | 33.66 | 38.90 | 41.82 | 55.74 | 84.94 | 81.99 | 102.20 | 153.58 | 0.00 | 140.23 |
| Year-End Price | N/A | 19.28 | 28.10 | 37.07 | 39.70 | 41.40 | 61.63 | 84.62 | 85.30 | 124.68 | 155.97 | 0.00 | 140.23 |
HOULIHAN LOKEY, INC. passes 4 of 9 quality checks, suggesting mixed fundamentals.
HOULIHAN LOKEY, INC. trades at 21.5x trailing earnings, compared to its 15-year median P/E of 16.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 10.3x vs a median of 10.2x. The company's 5-year average ROIC is 20.4% with a gross margin of 32.0%. Total shareholder yield (dividends + buybacks) is 3.6%. At current prices, the estimated annualized return to fair value is +11.4%.
HOULIHAN LOKEY, INC. (HLI) has a net profit margin of 16.3%. This is a healthy margin.
HOULIHAN LOKEY, INC. (HLI) generated $682 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HOULIHAN LOKEY, INC. (HLI) has a debt-to-equity ratio of 0.79. This indicates moderate leverage.
HOULIHAN LOKEY, INC. (HLI) reported earnings per share (EPS) of $6.22 in its most recent fiscal year.
HOULIHAN LOKEY, INC. (HLI) has a return on equity (ROE) of 18.8%. This indicates the company generates strong returns for shareholders.
HOULIHAN LOKEY, INC. (HLI) has a 5-year average gross margin of 32.0%. This indicates decent pricing power.
The Ledger Terminal provides 13 years of financial data for HOULIHAN LOKEY, INC. (HLI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HOULIHAN LOKEY, INC. (HLI) has a book value per share of $34.23, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued momentum in Corporate Finance driven by improving M&A markets, accelerating private equity activity, and strong backlog visibility into fiscal 2027, with particular confidence in deal activity and transaction volumes. Financial Restructuring is anticipated to perform at elevated levels in fiscal 2027 despite an improving market environment, supported by multiple tailwinds including widening credit spreads, private credit dislocation, and energy volatility, with management noting this may represent a structural floor for the business rather than a cyclical trough. The firm expects to maintain its long-term adjusted compensation expense ratio target of 61.5% and anticipates adjusted non-compensation expenses to grow at similar rates to fiscal 2026, with continued investment in technology capabilities that benefit multiple business lines. Management remains optimistic about the fundamental trajectory of the business for fiscal 2027 while acknowledging near-term variability from deal-closing timing and geopolitical uncertainties, and continues to prioritize accretive acquisitions as a capital allocation priority alongside share repurchases.
Based on recent SEC filings and earnings calls, HOULIHAN LOKEY, INC. (HLI) has provided the following forward guidance: Adjusted compensation expense ratio: 61.5% (FY2027); Adjusted non-compensation expense growth: Similar to fiscal 2026 growth rate (FY2027); Adjusted effective tax rate (Q1 FY2027): Approximately half of Q4 FY2026 rate (Q1 FY2027).