HLI Stock Analysis — Houlihan Lokey
Sector: Financials
AI Verdict
HLI looks cheap for the growth you're getting, but the moat relies on continued dominance in restructuring—if that pipeline falters, the multiple could compress fast.
Competitive Moat
Houlihan Lokey specializes in financial restructuring and M&A advisory, with a defensible niche in distressed dealmaking and deep client relationships across mid-market transactions. Their expertise and reputation in complex restructurings create high switching costs for clients during critical events.
Summary
HLI's forward P/E of 16.8x and expected 37.4% EPS growth put it in rare territory for a financial stock.
Where It Stands
HLI trades at 16.8x next year's earnings, well below the 14x sector median for financials, while analysts expect a 37.4% jump in EPS.
Key Metrics
- Trailing P/E: 23.0x
- Forward P/E: 16.8x
- PEG Ratio: 0.62
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- Dividend Yield: 0.02%
- 52-Week High: $211.78
- 52-Week Low: $130.72
Analyst Consensus
7 Buy · 6 Hold · 1 Sell (14 analysts)
Bull Case
With forward EPS growth of 37.4% and a forward P/E of 16.8x, you're getting high growth at only a modest premium to the sector median.
Bear Case
If the forward P/E reverts to the sector median of 14x, the stock could see a roughly 17% valuation pullback even if earnings deliver.
Catalyst to Watch
Watch for upcoming restructuring deal announcements or guidance updates that could confirm or challenge the 37.4% EPS growth outlook.