Market Outlook | Learn about the firm's optimistic view on M&A activity despite uncertainties, with JMP Securities maintaining a Market Perform rating on the stock. |
Strategic Expansion | Delve into Houlihan Lokey's growing European presence and its potential impact on future growth, particularly in the Corporate Finance segment. |
Segment Strengths | Explore the company's standout Corporate Finance segment, which achieved 45% year-over-year growth, and the sustained momentum in Restructuring business. |
Financial Resilience | Houlihan Lokey demonstrates robust performance with Q1 FY2025 revenues reaching $513.6 million, a 23.5% year-over-year increase, despite market challenges. |
Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services in the United States and internationally. It operates in three segments: Corporate Finance (CF), Financial Restructuring (FR), and Financial and Valuation Advisory (FVA). The CF segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as financial sponsors on various transactions. The FR segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. This segment also provides a range of advisory services, including structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The FVA segment offers valuations of various assets, such as companies, illiquid debt and equity securities, and intellectual property; and dispute resolution services. This segment also provides fairness opinions in connection with M&A and other transactions, solvency opinions in connection with corporate spin-offs and dividend recapitalizations, and other types of financial opinions. The company serves corporations, financial sponsors, and government agencies. Houlihan Lokey, Inc. was incorporated in 1972 and is headquartered in Los Angeles, California.
Metrics to compare | HLI | Sector Sector - Average of metrics from a broad group of related Financials sector companies | Relationship RelationshipHLIPeersSector | |
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P/E Ratio | 36.0x | 30.0x | 8.6x | |
PEG Ratio | 1.48 | 0.52 | 0.03 | |
Price / Book | 6.1x | 2.6x | 1.0x | |
Price / LTM Sales | 5.5x | 2.6x | 2.7x | |
Upside (Analyst Target) | −3.4% | −0.8% | 14.0% | |
Fair Value Upside | Unlock | −10.9% | 3.2% | Unlock |