Houlihan Lokey Inc. Class A Common Stock (HLI)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Houlihan Lokey as a relationship-and-talent business, not a balance-sheet bank. It advises on mergers, restructurings and valuations through three segments, with about 2,800 employees. The quality is real: in FY2026 (year ended 2026-03-31) revenue was $2.6B, net income $425.7M, and diluted EPS $6.22, up from FY2025 revenue $2.4B, net income $399.7M, and diluted EPS $5.82, and FY2024 revenue $1.9B, net income $280.3M, and diluted EPS $4.11. That record shows a business that can grow and earn good returns, with ROE of 17.79% and ROCE of 11.17% as FairStock calculations, and debt-to-equity of 0.21. But the latest filed quarter, fiscal Q1 2027 (quarter ended 2026-06-30), showed revenue of $511.0M, net income of $78.0M, and diluted EPS of $1.15, down from fiscal Q1 2026 revenue of $605.0M, net income of $98.0M, and diluted EPS of $1.42. That is a sharp slowdown and confirms the cyclicality. At the 2026-10-13 close of $129.53, FairStock shows P/E 21.77 and P/B 4.02; for a business FairStock classifies as a SLOW GROWER, with 6.4% annual profit growth and 11.4% revenue growth over five years, that is not a bargain. The dividend yield is 2.14%, beta 0.97, FairStock score 65/100, and Piotroski 3/9. I cannot assess CET1, NIM or combined ratio because they are not in the data. The moat is reputational and talent-based, not impregnable. I would want a wider margin of safety given the falling quarterly profits.

In plain English: Houlihan Lokey is an investment bank that advises on mergers, restructurings and valuations. It has been profitable and earns good returns, but its latest quarter showed sales and profit falling from a year earlier. At the current price of $129.53, the shares look more fairly valued than cheap compared with those numbers, and the company is not a fast grower.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer