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HQIHireQuest, Inc.
$12.15$169M
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  4. Financial Ratios

HireQuest, Inc. (HQI) Financial Ratios

Latest Ratios: P/E Ratio 27.0x · EV/EBITDA 14.8x · ROE 9.5%. (2001–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

HQI Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$169M$147M$197M$212M$217M$274M$140M$82M$19M$30M$23M
Enterprise Value$165M$143M$202M$225M$230M$276M$126M$78M$12M$23M$20M
P/E Ratio →27.0023.3654.4634.8917.3723.1726.21—20.0017.8839.27
P/S Ratio5.534.815.705.597.0112.1810.115.180.200.310.24
P/B Ratio2.492.163.043.383.725.873.842.631.031.541.20
P/FCF14.1312.2916.4720.1314.0917.8015.3118.467.886.49—
P/OCF14.0612.2316.3719.9512.8515.7812.8316.577.406.341724.18

P/E links to full P/E history page with 30-year chart

HQI EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—4.685.835.957.4412.269.124.910.120.240.22
EV / EBITDA14.7712.8028.2016.7712.7530.0324.6424.499.335.6810.54
EV / EBIT20.1917.5039.8124.5816.1836.1119.149.8910.066.2818.18
EV / FCF—11.9716.8621.4114.9617.9313.8117.524.825.00—

HQI Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin90.2%90.2%100.0%100.0%100.0%100.0%100.0%100.0%25.6%25.9%25.4%
Operating Margin26.7%26.7%12.6%28.1%51.8%34.0%36.1%17.5%1.2%3.8%1.7%
Net Profit Margin20.7%20.7%10.6%16.2%40.2%52.6%38.8%-1.8%1.0%1.7%0.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE9.5%9.5%5.8%10.1%23.7%28.5%15.8%-1.2%5.1%8.7%3.9%
ROA6.9%6.9%3.7%5.9%13.8%18.7%11.2%-0.8%4.0%6.8%3.0%
ROIC9.2%9.2%4.5%10.8%20.0%16.1%15.0%10.9%7.4%19.2%8.4%
ROCE11.5%11.5%6.3%15.8%26.2%16.0%13.2%10.0%5.9%18.0%7.6%

HQI Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity——0.110.240.280.07——0.020.040.02
Debt / EBITDA——0.971.100.910.35——0.310.210.20
Net Debt / Equity—-0.060.070.210.230.04-0.38-0.13-0.40-0.35-0.14
Net Debt / EBITDA-0.35-0.350.661.000.750.22-2.68-1.32-5.91-1.69-1.38
Debt / FCF—-0.320.391.280.880.13-1.50-0.94-3.06-1.49—
Interest Coverage26.7026.705.496.6138.6948.73132.4514.09558.35318.1444.14

Net cash position: cash ($4M) exceeds total debt ($0)

HQI Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio3.153.152.041.441.411.964.123.364.823.753.98
Quick Ratio3.153.152.041.441.391.963.973.364.743.693.67
Cash Ratio0.250.250.090.040.080.061.450.382.171.600.79
Asset Turnover—0.350.370.360.300.290.280.344.163.873.84
Inventory Turnover————————257.26259.3759.23
Days Sales Outstanding—480.72459.06444.97548.88643.52621.75726.9633.8934.9640.26

HQI Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield2.0%2.3%1.7%1.6%1.5%1.1%1.0%—36.1%3.9%—
Payout Ratio53.3%53.3%91.5%54.4%26.6%26.5%25.3%—720.2%69.9%—

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.7%4.3%1.8%2.9%5.8%4.3%3.8%—5.0%5.6%2.5%
FCF Yield7.1%8.1%6.1%5.0%7.1%5.6%6.5%5.4%12.7%15.4%—
Buyback Yield0.2%0.3%0.0%0.0%0.0%0.0%0.1%10.2%9.4%1.2%6.7%
Total Shareholder Yield2.2%2.5%1.7%1.6%1.5%1.1%1.1%10.2%45.5%5.1%6.7%
Shares Outstanding—$14M$14M$14M$14M$14M$14M$12M$5M$5M$5M

Key Metrics

Growth RegimeContracting
ProfitabilityModerate
Balance SheetVulnerable
Cash FlowMixed
Top Statement Risk

Franchisee network volume contraction

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Premium Multiples Amidst Revenue Contraction

According to current market data, HQI trades at a forward P/E of 24.22, which appears elevated given the 11.44% TTM revenue decline and a PEG ratio of 10.29, suggesting that investors are pricing in a recovery that the current operational trajectory has yet to support.

The valuation premium relative to the broader staffing sector suggests the market is applying a 'franchisor' multiple to HQI, yet the persistent revenue contraction warrants caution. Investors should monitor whether the current P/S of 6.11 is sustainable if system-wide sales continue to soften, as the market may be overestimating the durability of the company's royalty-based growth.

Capital Efficiency Decaying Under Pressure

Based on reported figures, ROIC has trended downward to 1.7% in 2026Q1 from 2.7% in 2025Q3, indicating that the company is struggling to compound returns on its invested capital as the franchise network faces significant headwinds in the current macroeconomic environment.

The decline in ROIC suggests that recent acquisitions or internal investments are not yet generating the expected yield, potentially due to the integration of lower-performing franchise units. This trend warrants further investigation into whether the company's capital allocation strategy is effectively offsetting the organic slowdown in system-wide sales.

Working Capital Cycles Remain Stretched

As reported in financial statements, the DSO remains exceptionally high at 596 days in 2026Q1, which is significantly elevated compared to historical norms and suggests that the company's ability to collect on its royalty and service fee streams is facing structural friction.

The extended DSO appears to indicate that the company is either carrying significant bad debt risk or that the billing cycle for its franchise network is inherently inefficient. This lack of working capital velocity may explain the volatility in cash flow and suggests that the company's liquidity position is more sensitive to franchisee payment delays than previously assumed.

Liquidity Buffer Facing Increasing Strain

Based on the most recent quarterly data, the current ratio has fluctuated to 2.69, yet the absolute cash position has dwindled to $1.0 million, which appears inadequate given the company's ongoing commitments to dividends and share repurchases during a period of negative revenue growth.

While the current ratio appears healthy on the surface, the rapid depletion of cash reserves suggests that the company's liquidity is highly dependent on the timing of royalty inflows. Investors should monitor whether the company will need to curtail its capital return program to preserve liquidity if the current revenue contraction persists.

Misapplication of Standard Staffing Metrics

The most commonly misapplied metric for HQI is the traditional 'Gross Margin' of 90%+, which obscures the fact that the company does not bear the direct labor costs of its franchisees, leading to an inflated perception of operational profitability compared to peers like TrueBlue.

Analysts often mistake this high gross margin for superior operational efficiency, when it is actually a function of the franchisor accounting model. A more accurate assessment would focus on 'Net Royalty Margin' and 'System-Wide Sales' growth, as these metrics better reflect the underlying economic health of the franchise network and the company's true earning power.

Download Financial Ratios Data

Includes 30+ ratios · 25 years · Updated daily

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HQI — Frequently Asked Questions

Quick answers to the most common questions about buying HQI stock.

What is HireQuest, Inc.'s P/E ratio?

HireQuest, Inc.'s current P/E ratio is 27.0x. The historical average is 28.1x. This places it at the 67th percentile of its historical range.

What is HireQuest, Inc.'s EV/EBITDA?

HireQuest, Inc.'s current EV/EBITDA is 14.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.6x.

What is HireQuest, Inc.'s ROE?

HireQuest, Inc.'s return on equity (ROE) is 9.5%. The historical average is -4.7%.

Is HQI stock overvalued?

Based on historical data, HireQuest, Inc. is trading at a P/E of 27.0x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is HireQuest, Inc.'s dividend yield?

HireQuest, Inc.'s current dividend yield is 1.98% with a payout ratio of 53.3%.

What are HireQuest, Inc.'s profit margins?

HireQuest, Inc. has 90.2% gross margin and 26.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.