One-glance verdict
Undervalued
$33.97 our estimate vs market $10.71
Wall Street consensus: $16.67 (-50.9% lower than our fair-value estimate)
68% below our estimate, below the bear case
Fundamentals snapshot
The Hackett Group, Inc.
HCKT · NMS · Technology · Information Technology Services
Current price
$10.71
52-week range
$9.16 - $20.68
Market cap
$266.44M
Balance sheet
Stretched
15.53x Strong cushion
Net debt $68.86M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 17.9% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 94.8% over 3 years.
- Risk Operating margin compressed from 18.6% to 12.0% over 3 years.
What this company does
The Hackett Group, Inc.
The Hackett Group is a consulting company that advises other businesses on how to use technology like artificial intelligence to improve their operations in areas like finance or their supply chain (the entire network involved in creating and selling a product). They primarily make money by charging for this expert advice and for access to their specialized software. This is significant because many companies are eager to adopt new technologies to become more efficient, and they often pay for outside help to do it correctly.
How the company got here
The Hackett Group started in 1991, focusing on benchmarking (comparing a company's performance to others) to find best practices. In 1997, a new advisory firm called Answerthink, Inc. was founded by former KPMG partners, and it quickly acquired the original Hackett benchmarking business. After going public in 1998 to raise money for growth, the company expanded into broader business and technology consulting. To better reflect its well-known research and data-driven approach, the company officially changed its name from Answerthink to The Hackett Group in 2008.
What it actually does
The Hackett Group is a consulting firm that helps other companies improve how they operate and use technology. Think of them as expert advisors who show businesses how to become more efficient and effective, often by using data to compare them against top-performing companies. They provide advice on everything from finance and human resources to technology and managing supply chains (the network of people and companies involved in creating and distributing a product). A key part of their service is helping companies implement and get the most out of powerful business software from major providers like Oracle and SAP.
Global Strategy & Business Transformation (Global S&BT)
This is the company's largest business area, making up the majority of its revenue. It provides high-level advice to executives on how to improve their company's performance in areas like finance, human resources, and procurement (the process of buying goods and services). A core part of this segment is its benchmarking service, where they use a massive database of performance metrics to show a company how its efficiency compares to the best in the world. This group also advises on major initiatives like digital transformation (adopting modern digital technology to improve business processes) and using artificial intelligence.
Oracle Solutions
This segment focuses on helping clients use software from Oracle, a major technology company that provides applications for managing business operations. The Hackett Group's experts in this area help businesses choose, set up, and manage Oracle's tools for things like financial planning and resource management. This is a significant part of their business, helping companies implement complex software to run their core functions more smoothly. They also provide ongoing support to ensure the software keeps working well for the client's needs.
SAP Solutions
Similar to the Oracle group, this segment is dedicated to helping clients with software from another major provider, SAP. This part of the company, which operates largely under the original Answerthink brand name, specializes in implementing and customizing SAP's powerful business software for mid-sized and large companies. They help businesses use SAP's tools to manage everything from finances to supply chains, aiming to make their operations more efficient. This is a well-established part of their business, and they have been recognized by SAP for their expertise and successful projects.
What management is betting on now
The Hackett Group is heavily focused on digital transformation, helping clients adopt cloud-based software and automate their business processes. A major priority is generative artificial intelligence (AI), where they are developing platforms and advising companies on how to use this new technology to improve efficiency and innovate. They are also concentrating on helping clients manage costs and risks in their supply chains, which has become a top concern for many businesses. Ultimately, the company is betting that its expertise in combining data-driven advice with technology implementation will be critical for businesses trying to stay competitive.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$9.35M
FY2024 Q4
$19.62M
FY2025 Q1
$2.65M
FY2025 Q2
$3.74M
FY2025 Q3
$5.54M
FY2025 Q4
$14.65M
FY2026 Q1
$-7.48M
FY2026 Q2
$12.58M
Revenue
$69.33M
Net income
$4.41M
Diluted EPS
0.18
Operating cash flow
$15.16M
Free cash flow
$12.58M
Fetching…
Sources
Revenue
$68.80M
Net income
$4.28M
Diluted EPS
0.17
Operating cash flow
$-5.07M
Free cash flow
$-7.48M
Fetching…
Sources
Revenue
$75.75M
Net income
$5.59M
Diluted EPS
0.21
Operating cash flow
$19.07M
Free cash flow
$14.65M
Fetching…
Sources
Revenue
$73.11M
Net income
$2.55M
Diluted EPS
0.09
Operating cash flow
$11.39M
Free cash flow
$5.54M
Fetching…
Sources
Revenue
$78.90M
Net income
$1.66M
Diluted EPS
0.06
Operating cash flow
$5.65M
Free cash flow
$3.74M
Fetching…
Sources
Revenue
$77.86M
Net income
$3.14M
Diluted EPS
0.11
Operating cash flow
$4.19M
Free cash flow
$2.65M
Fetching…
Sources
Revenue
$79.23M
Net income
$3.56M
Diluted EPS
0.12
Operating cash flow
$20.64M
Free cash flow
$19.62M
Fetching…
Sources
Revenue
$79.78M
Net income
$8.59M
Diluted EPS
0.31
Operating cash flow
$10.58M
Free cash flow
$9.35M
Fetching…
Sources
Is it cheap or expensive?
Fair value $33.97 vs current price $10.71
Wall Street consensus is the average analyst price target: $16.67 (-50.9% lower than our fair-value estimate).
Our most-likely fair value is $33.97 a share — about 217.2% above today's price of $10.71, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $68.9M. Interest coverage 15.5x.
Net debt
$68.86M
Interest coverage
15.53x
The Hackett Group, Inc.'s profit covers its interest bill about 15.5 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
HCKT
BASELINE
The Hackett Group, Inc.
Total debt $83.03M Interest coverage 15.53x This is the baseline the peer rows are being compared against.
Total debt $67.50M Interest coverage 4.38x -72% vs HCKT Carries about 3.5x less debt cushion than HCKT.
Total debt $865.16M Interest coverage 5.49x -65% vs HCKT Carries about 2.8x less debt cushion than HCKT.
Total debt $63.99M Interest coverage 0.73x -95% vs HCKT Carries about 21.4x less debt cushion than HCKT.
Total debt $303.65M Interest coverage 15.51x -0% vs HCKT Has roughly the same debt cushion as HCKT.
Total debt $22.52M Interest coverage -54.10x -100% vs HCKT This peer has almost no interest-payment cushion compared with HCKT.
What you should know
The case for and against HCKT
3 Rewards
2 Risks
Rewards
-
Returns 17.9% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 17.0x P/E vs peer median 23.9x (28.7% cheaper).
Risks
-
Net debt grew 94.8% over 3 years.
-
Operating margin compressed from 18.6% to 12.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.00x
Forward P/E
6.72x
P/B
3.91x
P/S
0.94x
EV/EBITDA
8.06x
PEG ratio
0.63x
Profitability
How much profit each dollar creates
Gross margin
41.8%
Operating margin
12.0%
Net margin
5.9%
ROE
17.9%
ROA
11.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.22x
Current ratio
1.94x
Quick ratio
1.74x
Total debt
$83.03M
Total cash
$14.16M
Growth
How the business has been compounding
Revenue TTM
$286.99M
Revenue 5Y CAGR
2.3%
EPS TTM
0.63
EPS 5Y CAGR
-28.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$40.55M
Free CF TTM
$32.44M
FCF margin
11.3%
Dividend
Shareholder payout
Yield
4.4%
Payout ratio
76.2%
Last ex-div date
2026-09-18