HLI · NYSE · STOCK
Houlihan Lokey (HLI) Stock Analysis
$129.79
52W $112.83 – $204.18
54/100
$8.98B
21.1
1.01
Is HLI Bullish or Bearish?
Mixed.
Innellis AI committee rates Houlihan Lokey (HLI) Watch with a composite score of 54/100
, based on 6 analysts with 50% agreement.
Last updated October 16, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +5.51 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -14.49 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case. Growth Analyst remains cautious — 2 consecutive earnings misses -- execution concerns. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 17.8% shows genuine earnings power backing the valuation — Value
- MACD histogram positive -- bullish momentum — Technical
- Low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock — Risk
- News sentiment is positive (+0.20 across 10 articles, 14d) — News
Bear Case
- Price-to-book of 4.3x prices in significant intangible value — Value
- 2 consecutive earnings misses -- execution concerns — Growth
- Price structure making lower highs and lower lows — Technical
- Trend and market structure agree -- coherent bearish picture — Technical
- Current ratio of 0.97 is tight -- limited short-term liquidity cushion — Risk
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 16, 2026
Overall Committee Score
54/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 82%
of 211 Financial Services peers
Value Analyst
neutral
59
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 17.8% shows genuine earnings power backing the valuation
− Price-to-book of 4.3x prices in significant intangible value
Growth Analyst
bearish
30
/ 100 · Moderate confidence
Growth story is weak, decelerating, or inconsistent
− 2 consecutive earnings misses -- execution concerns
Technical Analyst
neutral
52
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst
neutral
58
/ 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
+ Low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock
− Current ratio of 0.97 is tight -- limited short-term liquidity cushion
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
64
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.20 across 10 articles, 14d)
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2739.42)
Investment Thesis Evolution
Committee score moved marginally from 54.5 to 54.5.
- New bearish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Portfolio Manager: +1 bearish signal(s).
Comparing 2026-10-15 to 2026-10-16 (1 day apart).
Technical Analysis
RSI (14)
51.2
Neutral
MACD Histogram
0.129
Bullish Momentum
Trend Direction
Downtrend
Weekly: Sideways
Market Structure
Lh Ll
Support
$127.27
Resistance
$133.67
Bollinger %B
0.52
Inside Bands
Price vs Moving Averages
EMA 9
$127.94
Above
EMA 21
$128.79
Above
EMA 50
$130.89
Below
EMA 200
$145.23
Below
Fundamental Analysis
Valuation
80
Growth
29
Profitability
87
Financial Health
76
Cash Flow
70
Valuation
P/E Ratio
21.1×
P/B Ratio
3.79×
PEG Ratio
-14.49
Dividend Yield
2.02%
52W High
$204.18
52W Low
$112.83
Quality & Growth
ROE
1817.4%
ROA
987.9%
Gross Margin
5079.5%
Operating Margin
2182.4%
Revenue Growth YoY
—
Debt / Equity
0.22
AI Fundamental Assessment
P/E ratio of 21.1 (inexpensive relative to a 15-40x range); Price-to-book of 3.8x; PEG ratio of -14.5 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 18.2%; Return on assets of 9.9%; Net margin of 16.1%; Gross margin of 50.8%; Current ratio of 1.44 (tight short-term liquidity); Debt-to-equity of 0.22; Free cash flow per share is positive (7.29); Most recent quarter missed estimates by 22.2%; 2 consecutive earnings misses; EPS growth roughly steady (-16.0% -> -17.2% QoQ); Average YoY EPS growth of -36.9%; Analyst estimates falling over recent quarters
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