| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.81 | 165 |
| Intrinsic value (DCF) | 7.67 | -32 |
| Graham-Dodd Method | 2.25 | -80 |
| Graham Formula | n/a |
HireQuest, Inc. (NASDAQ: HQI) is a leading provider of temporary staffing solutions in the United States, specializing in skilled and semi-skilled labor, industrial personnel, clerical staff, and construction workers. Headquartered in Goose Creek, South Carolina, the company operates through a franchise-owned network of approximately 216 offices across 36 states and the District of Columbia. HireQuest serves diverse industries, including construction, manufacturing, warehousing, hospitality, logistics, and retail, offering flexible workforce solutions tailored to client needs. The company, formerly known as Command Center, Inc., rebranded in 2019 to reflect its expanded service offerings. With a focus on commercial drivers and disaster recovery staffing, HireQuest capitalizes on labor market trends, including rising demand for temporary workers amid economic fluctuations. Its asset-light franchise model enables scalable growth while minimizing operational overhead. As a key player in the $150B+ U.S. staffing industry, HireQuest competes by combining localized service with national reach.
HireQuest presents a niche investment opportunity in the fragmented staffing industry, with a market cap of ~$129.5M and a beta of 1.2 indicating moderate volatility. The company generated $34.6M in revenue and $3.7M net income in its latest fiscal year, with a diluted EPS of $0.26 and a dividend yield of ~1.8% ($0.24/share). Strengths include strong operating cash flow ($12M) and a capital-efficient franchise model. However, its small scale relative to industry leaders and exposure to cyclical labor demand pose risks. The debt-to-equity ratio of ~0.5 suggests manageable leverage. Investors may value its specialization in industrial/construction staffing and recession-resilient segments like disaster recovery, but wage inflation and franchisee retention could pressure margins.
HireQuest’s competitive advantage stems from its hybrid franchise model, which combines decentralized local market expertise with centralized support, reducing overhead while maintaining service agility. Unlike corporate-owned competitors, this structure allows rapid geographic expansion with lower capital intensity. The company’s focus on blue-collar temp staffing (e.g., construction, logistics) differentiates it from generalist firms, aligning with persistent demand for skilled trade labor. However, its niche orientation limits diversification compared to broader peers like Robert Half. HireQuest’s franchisee-dependent model risks inconsistent service quality, though it incentivizes owner-operators to drive local sales. The company’s small scale (~200 offices) restricts bargaining power with clients versus national giants like TrueBlue, but its specialization in disaster recovery (e.g., hurricane relief contracts) provides sticky revenue streams. Technology is a relative weakness—while competitors invest in AI-driven matching, HireQuest relies on traditional recruiting. Its balance sheet is lean (just $2.2M cash), constraining M&A to augment growth.