Robert Half Inc. (RHI): A Bull Case Theory

We came across a bullish thesis on Robert Half Inc. on DeepValue Capital’s Substack. In this article, we will summarize the bulls’ thesis on RHI. Robert Half Inc.'s share was trading at $37.94 as of August 22^nd. RHI’s trailing and forward P/E were 21.68 and 23.09 respectively according to Yahoo Finance.

Since the start of 2024, Robert Half International Inc. (RHI) has emerged as a compelling investment idea due to a combination of strong fundamentals, mispricing, and thematic leverage. The company, a 75-year-old staffing and consulting firm, operates across three primary segments: Contract Talent Solutions (56% of revenue), Permanent Placement (8%), and Protiviti business consulting (35%). Its strategy focuses on high-skilled, high-impact staffing and consulting, particularly in finance and accounting, which are less sensitive to economic cycles.

While the majority of its operations are U.S.-based, RHI maintains a presence in 32 countries, giving it a broad market footprint. Despite this, the stock has declined over 70% from 2022 highs, creating a potential upside opportunity. RHI boasts exceptional capital efficiency, with historical ROIC and ROCE around 39–40%, supported by a strong balance sheet with zero debt and $380 million in cash. It returns capital to shareholders via a 6.4% dividend and share buybacks, delivering a near 9% yield while awaiting revenue and free cash flow recovery.

The company’s decades of staffing data provide a foundation for AI-driven matching tools, likely enhancing efficiency and margins. Key risks include economic downturns, management incentives, AI investment execution, and competition in a fragmented industry. Assuming modest revenue growth of 6% annually after a 3% near-term decline, maintaining an 8% free cash flow margin, and accounting for share buybacks, RHI could achieve a market cap of $8.74 billion by 2028, implying a share price near $95—over 2x the current price. With strong returns on capital, a resilient business model, and valuation upside, Robert Half presents a highly attractive risk/reward scenario.

Previously we covered a bullish thesis on Kelly Services, Inc. (KELYA) by Unemployed Value Degen and Value Don’t Lie in April 2025, which highlighted the company’s transformation, focus on high-margin contract employment, and growth in science, engineering, and education segments. The stock has appreciated approximately 10.24% since our coverage. DeepValue Capital shares a similar perspective but emphasizes Robert Half’s high returns on capital, global footprint, and AI-driven efficiency gains, offering a different approach to value creation in the staffing industry.

Robert Half Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held RHI at the end of the first quarter which was 26 in the previous quarter. While we acknowledge the potential of RHI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.