The Hackett Group, Inc. (HCKT) AI Stock Analysis
HCKT AI stock analysis summary
AI ResearchThe Hackett Group, Inc. (HCKT) is an IT services and strategic advisory firm offering benchmarking, executive advisory, and business transformation services. Over the trailing twelve months, the company generated $283.2M in revenue with an operating margin of 12.0%. After reporting annual revenue of $305.6M in FY2025, the stock has dropped 37.8% over the past year while maintaining a forward dividend yield of 4.25%.
- Market cap
- $281.1M
- Revenue (TTM)
- $283.2M
- P/E
- 17.9x fwd 6.5x
- 1Y return
- -37.8% S&P 500 16.8%
- Avg. target
- $16.67 47.5% vs last close
Bull case
- The stock trades at a forward P/E of 6.5x and an EV/EBITDA of 8.9x, representing a discount to the US-listed Technology peer medians of 18.8x and 16.6x.
- Shareholder returns are supported by a 4.25% forward dividend yield, 15 consecutive years of dividend payments, and an annualized 5-year dividend growth rate of 11.0%.
- Quarterly net earnings increased by 193.2% year-over-year in the latest quarter ended June 30, 2026.
Bear case
- Revenue contracted 2.6% in FY2025 to $305.6M and fell an additional 12.0% year-over-year in the quarter ended June 30, 2026.
- Operating margin decreased from 16.7% in FY2021 to 8.7% in FY2025 as net income dropped to $12.9M.
- The stock has lagged the broader market with a 1-year return of -37.8% compared to a 16.8% return for the S&P 500.
What Hackett does
The Hackett Group, Inc. operates as a strategic advisory and technology consulting firm with operations in North America and internationally. The company delivers organizational performance and efficiency solutions through offerings such as its Best Practice Intelligence Center, Best Practice Accelerators for software configurations, and Advisor Inquiry services for strategic advice. It also provides Best Practice Research and a Peer Interaction platform featuring conferences, webcasts, and forums. Renowned for its Benchmarking Services, the firm conducts empirical studies across finance, human resources, IT, procurement, and enterprise performance management, while its Business Transformation practice guides clients through large-scale strategic initiatives.
Growth and profitability
Revenue increased from $278.8M in FY2021 to a peak of $313.9M in FY2024 before declining 2.6% to $305.6M in FY2025, reflecting a 5-year revenue CAGR of 5.0%. Operating margin compressed from 16.7% in FY2021 to 8.7% in FY2025, while net income fell to $12.9M from $41.5M over the same timeframe. Diluted EPS was $1.56 in FY2025 compared to $1.31 in FY2021. For the trailing twelve months, revenue reached $283.2M with a net profit margin of 5.9%. In the latest quarter ended June 30, 2026, quarterly revenue fell 12.0% year-over-year, while quarterly earnings grew 193.2%.
Balance sheet and cash flow
As of June 30, 2026, The Hackett Group held $14.2M in cash and short-term investments against total debt of $83.0M, resulting in net debt of $68.9M. Shareholders' equity stood at $68.2M, with a debt-to-equity ratio of 1.22 and a current ratio of 1.94. In FY2025, operating cash flow was $40.3M and free cash flow was $32.4M after $7.9M in capital expenditures. Cash deployment included $69.1M spent on share buybacks and $12.9M paid in dividends, contributing to a 23.5% reduction in share count over five years.
Valuation and performance
HCKT trades at a trailing P/E of 17.9x and a forward P/E of 6.5x, below the US-listed Technology peer medians of 28.1x and 18.8x, respectively. Its price-to-sales multiple is 1.0x versus the peer median of 2.8x, and its EV/EBITDA stands at 8.9x compared to 16.6x for peers. Over the past year, HCKT shares have fallen 37.8%, while the S&P 500 gained 16.8%. Over a 5-year period, the stock fell 38.3% compared to an 83.0% gain for the benchmark index.
HCKT dividend
The company pays a quarterly dividend totaling an annualized forward rate of $0.48 per share, which equates to a dividend yield of 4.25%. The payout ratio is 36.1%, supported by 15 consecutive years of dividend payments. Over the last five years, dividends have grown at an annualized rate of 11.0%. The most recent ex-dividend date occurred on September 18, 2026.
What analysts expect
Wall Street coverage includes 3 analysts, consisting of 2 Strong Buy ratings and 1 Buy rating. The mean price target is $16.67, representing a 47.5% upside from the last closing price of $11.30. For the fiscal year ending December 31, 2026, consensus estimates project EPS to decline 6.7% to $1.45 on revenue of $278.6M. For the following fiscal year, analysts forecast EPS of $1.59 on revenue of $288.6M. Over the last four quarters, the firm beat EPS estimates once. The next earnings release is scheduled for November 3, 2026.
Key risks and what to watch
- Current fiscal year revenue is estimated to fall to $278.6M from $305.6M in FY2025, signaling persistent top-line headwinds.
- Net debt stands at $68.9M against $14.2M in cash and short-term investments, with a debt-to-equity ratio of 1.22.
- The company has beat consensus earnings expectations only 1 time over the last four reported quarters.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this HCKT AI stock analysis
This page is an AI-written research summary of The Hackett Group, Inc. (HCKT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: HCKT income statement, HCKT balance sheet, HCKT key metrics, HCKT analyst forecast, HCKT chart. See the HCKT stock overview for the latest quote and news.
HCKT AI stock analysis FAQ
What dividend does The Hackett Group pay?
The company pays an annualized dividend of $0.48 per share distributed quarterly, representing a forward dividend yield of 4.25% and a payout ratio of 36.1%.
What are analysts' price targets for HCKT stock?
Analysts maintain a mean price target of $16.67 for HCKT, which indicates an implied upside of 47.5% from its closing price of $11.30 on October 16, 2026.
How does HCKT's valuation compare to technology sector peers?
HCKT trades at a forward P/E of 6.5x and an EV/EBITDA of 8.9x, both below the US-listed Technology peer medians of 18.8x and 16.6x, respectively.
When is The Hackett Group's next earnings report?
The company is scheduled to report its next financial results on November 3, 2026.