| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 45.67 | 118 |
| Intrinsic value (DCF) | 1.85 | -91 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 14.71 | -30 |
The Hackett Group, Inc. (NASDAQ: HCKT) is a leading strategic advisory and technology consulting firm specializing in best-practice benchmarking, business transformation, and enterprise performance solutions. Headquartered in Miami, Florida, the company serves clients across North America and internationally, offering a suite of intellectual property-as-a-service (IPaaS), Oracle and SAP implementation services, and OneStream XF Platform deployment. Hackett’s proprietary Best Practice Intelligence Center provides data-driven insights to optimize finance, HR, IT, procurement, and shared services functions. With a market cap of approximately $679 million, the firm combines deep industry expertise with technology-enabled solutions to drive operational efficiency and digital transformation for mid-to-large enterprises. Operating in the competitive IT services sector, Hackett differentiates itself through its research-backed methodologies and advisory services, positioning it as a trusted partner for CFOs and CIOs seeking measurable performance improvements.
The Hackett Group presents a niche investment opportunity in the IT consulting space, supported by steady revenue ($313.9M in FY 2023) and profitability (net income of $29.6M). Its low beta (0.977) suggests relative stability compared to broader tech markets, while a dividend yield (~1.5% at current prices) adds income appeal. However, reliance on discretionary corporate spending exposes it to economic cycles, and its small-cap status may limit liquidity. Growth hinges on cross-selling IPaaS and expanding OneStream/Oracle/SAP practices, but competition from larger consultancies poses a risk. The firm’s strong operating cash flow ($47.7M) and modest debt ($15.7M) underpin financial flexibility.
The Hackett Group carves out a defensible niche by combining benchmarking research with implementation services—a hybrid model that blends Gartner’s advisory rigor with Accenture’s execution capabilities. Its proprietary Best Practice Intelligence Center creates switching costs, as clients integrate Hackett’s benchmarks into their operations. However, the company lacks the global scale of IT services giants (e.g., IBM, Accenture) and competes on specialization rather than breadth. Its Oracle/SAP/OneStream practices face pressure from pure-play implementation partners like RSM and Protiviti, while IPaaS competes with standalone research firms. Hackett’s ~$300M revenue scale limits its ability to invest in R&D compared to peers, but its asset-light model (minimal capex) supports margins. Differentiation stems from quantifiable ROI claims—clients reportedly achieve 4–6x cost savings on average—though this value proposition must be continually proven in a crowded market.