Houlihan Lokey Inc. (HLI) exhibits 41.0% gross margins and 21.6% return on invested capital within Financials (Investment Managers), balanced against a 17.2x enterprise multiple and 6.6% implied options volatility.
Sustained 41.0% gross profitability converts into 20.1% operating margin and 21.6% ROIC, outpacing sector cost of capital.
ROIC: 21.6% // GM: 41.0%YoY revenue trajectory of +9.5% paired with 7.00% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +9.5% // FCF YLD: 7.00%Altman Z-Score of 5.51 and Piotroski F-Score of 9/9 indicate low near-term refinancing stress.
ALTMAN Z: 5.51 // F-SCORE: 9/9Trading at 23.0x trailing P/E (21.4x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 23.0x // EV/EBITDA: 17.2xOptions market prices a ±6.6% implied move with a 0.80 put/call ratio around $137.00 max pain.
IMPL MOVE: ±6.6% // P/C: 0.80Elevated industry capital intensity and customer concentration in Investment Managers require continuous execution to defend 16.2% net margins.
NET MARGIN: 16.2% // D/E: 0.30x| FILER | SIDE | $ VALUE |
|---|---|---|
| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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