China chip stocks rally on self-reliance bets, Nvidia scrutiny
In a remarkable display of market confidence, Houlihan Lokey (NYSE:HLI) Inc's stock soared to an all-time high, reaching a price level of $157.58. This peak punctuates a period of robust growth for the global investment bank, which has seen its stock value surge by an impressive 51.86% over the past year. Investors have rallied around the firm's strong financial performance and strategic acquisitions, propelling the stock to unprecedented heights and setting a new benchmark for the company's market valuation.
In other recent news, global investment bank Houlihan Lokey has reported a robust start to fiscal year 2025. The firm's first-quarter revenues climbed to $514 million, marking a 24% increase from the previous year, while adjusted earnings per share rose significantly by 37%, reaching $1.22. The growth was primarily driven by the Corporate Finance division, which saw a 45% increase in revenues, although Financial Restructuring revenues experienced a slight decline.
These are recent developments at Houlihan Lokey, which has also expanded its team with key hires. The firm appointed Geoff Rhizor, formerly of Canaccord Genuity, as a Managing Director within its Technology Group. Andrew Atherton, previously a Partner at Union Square Advisors, also joined the firm as a Managing Director in the FinTech Group.
Looking ahead, Houlihan Lokey expressed optimism about continued growth quarter-over-quarter, given favorable market conditions. The firm is actively seeking acquisitions or organic hires to address underweighted sectors, following the successful integration of GCA that has bolstered its European operations. However, the firm anticipates a higher tax rate due to operations in higher tax jurisdictions.
InvestingPro Insights
In light of Houlihan Lokey Inc 's remarkable ascent in stock value, a closer examination of the company's financial health and market performance through InvestingPro's lens offers further insights. The firm's commitment to shareholder returns is underscored by its history of raising dividends for 9 consecutive years, and analysts have taken a bullish stance, revising their earnings upwards for the upcoming period. This optimism is mirrored in the company's substantial revenue growth, with an 11.37% increase over the last twelve months as of Q1 2025, and an even more impressive quarterly revenue growth of 23.5%.
However, it's worth noting that the company is trading at a high earnings multiple, with a P/E ratio of 32.65 and an adjusted P/E ratio of 36.11 for the same period, which suggests a premium valuation compared to near-term earnings growth. The PEG ratio for the last twelve months as of Q1 2025 stands at 1.44, indicating that the stock price might be outpacing earnings growth rates. Additionally, with a Price / Book ratio of 5.9, the stock is trading at a significant markup relative to the company's book value.
Investors considering Houlihan Lokey as a potential addition to their portfolio should be aware that the stock is trading near its 52-week high, at 99.08% of this threshold, and has delivered a high return over the last year, with a 54.75% price total return. For those seeking more detailed analysis and additional InvestingPro Tips, there are 11 more tips available, which can shed light on the stock's potential trajectory and provide a more nuanced investment strategy.
To explore these insights further, visit the company's dedicated page at https://www.investing.com/pro/HLI.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.