# Houlihan Lokey, Inc. (HLI) — Stock CV

Houlihan Lokey, Inc. is a $9.10B financial services company. Revenue grew 1.7% over the last year, and it keeps 16¢ of every dollar of sales as profit. It trades at 22.4× earnings — in the cheapest third of its own history.

> Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments world-wide with offices in the United States, Europe, and the Asia-Pacific region.

## Identity

- **Ticker**: HLI
- **Sector**: Financial Services
- **Industry**: Investment Advice
- **Headquarters**: LOS ANGELES, CA
- **Employees**: 2 800
- **Website**: https://www.hl.com
- **Market cap**: $9.10B
- **Last price**: $130.16
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $2.52B
- **Net income**: $406M
- **Free cash flow**: $485M
- **P/E**: 22.4
- **Revenue growth (YoY)**: 1.7%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 72 |
| Growth | 43 |
| Profitability | 60 |
| Health | 31 |
| Quality | 90 |
| Moat | 75 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +1.7% YoY
- [x] Profitable — $406M TTM
- [x] Profit growing — +18.3% YoY
- [x] Generates cash — $485M TTM
- [ ] Debt under control — current ratio 0.98
- [x] Established company — $9.10B market cap
- [x] Not printing shares — -0.3% shares over ~5y
- [x] Proven track record — 11/11 profitable years
- [ ] Financially stable — health score 31/100
- [x] Pays a dividend — yield 2.01%
- [x] Valuation not extreme — P/E 22.4

## Experience (career milestones)

- **FY2022** — Best year on record: $438M net income
- **FY2019** — Revenue crossed $1B: $1.08B for the year
- **2017** — Houlihan Lokey acquired Black Stone IP, a leader in Tech+IP advisory work
- **FY2016** — Profitable every year on record: 11 consecutive profitable years in our data
- **FY2016** — Positive free cash flow every year since: 11-year streak
- **Aug 13, 2015** — Houlihan Lokey completed its initial public offering, beginning trading as HLI on the NYSE
- **2015** — Houlihan Lokey acquired management consulting firm Bridge Strategy Group, digital media and entertainment…
- **2014** — Houlihan Lokey acquired ArchPoint Partners
- **2013** — Houlihan Lokey expanded its Financial Institutions Group through the acquisition of Milestone Advisors
- **2010** — Houlihan Lokey bought a sizable minority stake in Avista Advisory Group, giving the firm offices in both…
- **2001** — Houlihan Lokey launched its first non-U.S. office by expanding into London
- **1995** — To grow its information services division, Houlihan Lokey acquired Mergerstat, a publishing company with a…
- **1986** — Kenneth Friedman founded and became President of Houlihan Lokey’s investment banking broker dealer to…
- **1972** — Houlihan Lokey was founded in 1972 and is headquartered at Constellation Place in Century City, Los Angeles, California

## Strengths

- Strong cash conversion — FCF is 19.2% of revenue
- Interest covered 1833.2× by operating earnings

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $2.27B | $438M | $728M |
| FY2023 | $1.81B | $254M | $85.5M |
| FY2024 | $1.91B | $280M | $262M |
| FY2025 | $2.39B | $400M | $809M |
| FY2026 | $2.62B | $426M | $682M |

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Source: https://stockcv.com/HLI — derived from company filings; may be delayed or incomplete. Information, not investment advice.