| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 39.10 | 12 |
| Intrinsic value (DCF) | 20.86 | -41 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Robert Half International Inc. (RHI) is a global leader in specialized staffing and risk consulting services, operating across North America, South America, Europe, Asia, and Australia. Founded in 1948 and headquartered in Menlo Park, California, the company serves a diverse clientele through three core segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services. RHI specializes in placing professionals in accounting, finance, IT, legal, creative, and administrative roles, catering to businesses undergoing digital transformation, mergers, or regulatory compliance needs. With a strong presence in the Specialty Business Services sector under Industrials, Robert Half leverages its deep industry expertise and extensive talent network to provide tailored workforce solutions. The company's diversified service offerings and global footprint position it as a resilient player in the staffing industry, capable of adapting to evolving labor market trends and economic cycles.
Robert Half International presents a mixed investment profile. The company benefits from a diversified service portfolio and a global presence, which helps mitigate regional economic downturns. With a market cap of $4.59 billion and a beta of 1.046, RHI exhibits moderate volatility relative to the market. The firm generated $5.8 billion in revenue and $251.6 million in net income for the latest fiscal year, with diluted EPS of $2.44. However, investors should note the competitive pressures in the staffing industry, potential margin compression from wage inflation, and cyclical exposure to corporate hiring freezes during economic slowdowns. The dividend yield of approximately 2.24% provides some income appeal, but growth investors may seek stronger EPS expansion. The company's $537.6 million cash position against $233.5 million in debt suggests a healthy balance sheet, supporting continued investment in digital recruitment platforms.
Robert Half International competes in the highly fragmented global staffing industry by differentiating through specialization and premium brand positioning. The company's competitive advantage stems from its deep vertical expertise in high-value professional segments (finance, accounting, IT, legal) where clients prioritize quality over cost. Unlike generalist staffing firms, RHI's consultants possess industry-specific knowledge that enables better candidate matching and higher placement fees. The Risk Consulting segment further diversifies revenue streams beyond cyclical staffing. However, the company faces intensifying competition from digital-native platforms like LinkedIn and Upwork that offer lower-cost solutions for routine placements. RHI's scale (102.7 million shares outstanding) provides some advantages in vendor negotiations and geographic coverage, but regional specialists often outperform in local markets. The firm's London listing (0KX9.L) gives it European visibility, though it trails local players in non-US markets. Technology investments in AI-driven matching and virtual recruiting help maintain relevance, but gross margins remain pressured by the labor-intensive nature of high-touch staffing services. Long-term competitiveness will depend on balancing tech automation with the personalized service that justifies premium pricing in its core professional segments.