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HLI · NYSE · STOCK

Houlihan Lokey (HLI) Stock Analysis

Financial Services Updated September 22, 2026
$130.91
52W $112.83 – $211.78
56/100
$9.27B
21.8
0.97
AI Committee Verdict
Watch
56/100
Conviction: Contested · 67% agreement · 6 analysts
+0.8%
-4.0%
0.20:1
Contested

Is HLI Bullish or Bearish?

Mixed. Innellis AI committee rates Houlihan Lokey (HLI) Watch with a composite score of 56/100 , based on 6 analysts with 67% agreement. Last updated September 22, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +3.75 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 — -16.25 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 — vix regime is low -- calm backdrop supports risk-taking. 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
  • Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
  • Low leverage (debt-to-equity 0.00) -- balance sheet can absorb a shock — Risk
  • VIX regime is low -- calm backdrop supports risk-taking — Macro
Bear Case
  • Price-to-book of 4.3x prices in significant intangible value — Value
  • 2 consecutive earnings misses -- execution concerns — Growth
  • MACD histogram negative -- bearish momentum — 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 September 22, 2026
Overall Committee Score
56/100
Agreement
67%
Analysts
6
Conviction
Contested
Sector Rank
Top 84%
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
54 / 100 · High confidence
Mixed or range-bound price action
+ Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement
− MACD histogram negative -- bearish momentum
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
80 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ VIX regime is low -- calm backdrop supports risk-taking
News Analyst neutral
58 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
55 / 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
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Investment Thesis Evolution

Committee score moved marginally from 53.8 to 56.2.

Analyst-level changes:
  • Macro Analyst: score 65->80 (+15); +1 bullish signal(s).
  • Portfolio Manager: score 45->55 (+10); +1 bearish signal(s).

Comparing 2026-09-21 to 2026-09-22 (1 day apart).

Technical Analysis

RSI (14)
47.9
Neutral
MACD Histogram
-0.318
Bearish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Mixed
Support
$127.27
Resistance
$133.67
Bollinger %B
0.44
Inside Bands
Price vs Moving Averages
EMA 9
$133.08 Below
EMA 21
$132.98 Below
EMA 50
$133.99 Below
EMA 200
$148.63 Below

Fundamental Analysis

Valuation
79
Growth
29
Profitability
87
Financial Health
76
Cash Flow
70
Valuation
P/E Ratio 21.8×
P/B Ratio 3.91×
PEG Ratio -14.95
Dividend Yield 1.96%
52W High $211.78
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 21.8 (inexpensive relative to a 15-40x range); Price-to-book of 3.9x; PEG ratio of -15.0 (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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