Is Houlihan Lokey (HLI) stock a good buy?

This is a step-by-step stock review to answer the question, is Houlihan Lokey (HLI)stock a good buy?

This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.

What are the 4Ms?

• MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
• Meaning – The meaning is the business model and how scalable the revenue streams are.
• Moat – The moat is how the business compares to other companies in the same Sector and Industry.
• Management – The management is the track record of the CEO.

What 4M score are we going for?

• 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
• 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
• 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.

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Table of Contents

The following links will direct you to key topics to help answer the question, is Houlihan Lokey (HLI) stock a good buy?

1. Houlihan Lokey Company History
2. MOS
3. Meaning
4. Moat
5. Management
6. 4M Score
7. Is Houlihan Lokey (HLI) stock a good buy?

1.  Houlihan Lokey Company History

When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.

• Founded in 1972: Houlihan Lokey began its journey in Los Angeles, California.
• Initial Focus: Specialized in investment banking services, particularly in advisory services for middle-market companies.
• Expansion: Quickly grew from a regional firm to a national presence, establishing offices across the United States.
• Global Reach: Entered international markets with offices in Europe, Asia, and the Middle East, enhancing its global footprint.
• Public Offering: Went public in 2015, listed on the New York Stock Exchange under the ticker symbol HLI.
• Key Services: Renowned for mergers and acquisitions (M&A), capital markets, financial restructuring, and valuation services.
• Industry Recognition: Consistently ranked as a top M&A advisor and restructuring advisor, gaining a stellar reputation in investment banking.
• Client Base: Serves a diverse range of clients, including corporations, institutions, and governments worldwide.
• Innovation: Known for its innovative solutions, Houlihan Lokey has adapted to changing market dynamics and client needs.
• Commitment: Maintains a strong commitment to providing unbiased, expert advice and delivering exceptional results.
• Leadership: Led by a team of seasoned professionals, driving growth and maintaining the firm’s market leadership.
• Future Vision: Continues to expand its services and global reach, aiming to remain a leader in the financial advisory industry.

2. MOS (Margin of Safety)

When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.

• Summary: watch
• Score: 56/100
• MOS: 1%

To see the most up-to-date Summary, Score, and MOS, please log into Tykr.

3. Meaning

When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.

Here is how Houlihan Lokey (HLI) makes money:

• Advisory Fees: Charges fees for advising on mergers and acquisitions (M&A), including helping companies buy or sell businesses.
• Financial Restructuring: Earns money by assisting companies in financial distress, helping them reorganize or restructure their debt.
• Valuation Services: Provides valuations of companies and assets, charging fees for these assessments.
• Capital Markets: Advises on raising capital through debt or equity markets, earning fees for these services.
• Fairness Opinions: Offers fairness opinions on financial transactions, charging clients for this independent analysis.
• Strategic Consulting: Provides strategic advice to companies on various financial and business matters for a fee.
• Private Funds Advisory: Helps private equity firms and other investors with fundraising and other advisory services, earning fees for these efforts.
• Retainer Fees: Often charges clients a retainer fee for ongoing advisory services.

Houlihan Lokey uses these various streams to maximize their earnings and provide diverse services to moviegoers.

Here are a few of the other companies that Houlihan Lokey has acquired over the years.

• 7 Mile Advisors
• Oakley Advisory
• Freeman
• MVP Capital
• GCA Corporation

4. Moat

When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Houlihan Lokey (HLI) stacks up against other companies.

1. Nomura Holdings, Inc.(NMR) – 72
2. Associated Capital Group, Inc.(AC) – 61
3. BGC Group, Inc(BGC) – 61
4. Houlihan Lokey, Inc.(HLI) – 56
5. Westwood Holdings Group, Inc.(WHG) – 56
6. The Goldman Sachs Group, Inc.(GS-PD)

To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.

5. Management

When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.

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To truly know if Houlihan Lokey is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.

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