HLI Stock Analysis — Houlihan Lokey
Sector: Financials
AI Verdict
HLI is cheap for the growth you're getting, but the premium only holds if their restructuring moat keeps delivering on the aggressive earnings ramp.
Competitive Moat
Houlihan Lokey specializes in financial restructuring and mid-market M&A advisory, fields where deep client relationships and a reputation for successful deal execution create high switching costs. Their defensibility comes from long-standing industry networks and expertise in complex transactions, making them a go-to advisor in distressed markets.
Summary
HLI is notable for its expected 35.5% forward EPS growth, far outpacing most financial peers.
Where It Stands
HLI trades at 18.0x next year's earnings, a slight premium to the financials sector median of 14x, but analysts expect 35.5% EPS growth — a rare combination.
Key Metrics
- Trailing P/E: 24.4x
- Forward P/E: 18.0x
- PEG Ratio: 0.69
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- Dividend Yield: 0.02%
- 52-Week High: $211.78
- 52-Week Low: $134.41
Analyst Consensus
7 Buy · 6 Hold · 1 Sell (14 analysts)
Bull Case
With a forward P/E of 18.0x and 35.5% expected EPS growth, you're paying a low price for unusually strong earnings momentum.
Bear Case
If the P/E multiple reverts to the sector median of 14x, the stock could see a 22% valuation drop even if earnings deliver.
Catalyst to Watch
Watch for upcoming quarterly earnings — any miss on that 35.5% EPS growth expectation could trigger a sharp multiple contraction.