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The Hackett Group

HCKT
57
Information Technology Services · Technology
Price
$11.08
+0.28 (+2.59%)
Market Cap
$279.1M
Exchange
NASDAQ
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 26, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Strong
Stability
Strong
Valuation
Strong
Dividends
Good

Share count falling — buybacks

17.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 32.9M (2021) → 27.3M (2025)

Winston Score History

The full picture

The Hackett Group is a consulting and research firm that helps large companies run their back-office functions — like finance, human resources, and supply chain — more efficiently. Its main customers are big corporations looking to cut costs and improve operations. The company is known for its benchmarking research, which compares how well a company's operations stack up against thousands of other businesses worldwide.

The Hackett Group makes money by selling consulting projects, executive advisory memberships, and research subscriptions to its corporate clients. It operates primarily in North America and Europe, serving Fortune 500-sized companies. Its proprietary benchmarking database — built over decades — is a key competitive advantage because it is difficult for newer rivals to replicate. A growing opportunity is helping clients adopt artificial intelligence tools in their back-office processes, but the company's small size makes it vulnerable to losing contracts to larger consulting firms with broader resources.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
40.0%
Modest — 40.0% gross margin
Profit after running costs
Operating Margin
11.1%
Modest — 11.1% operating margin
Return on the money invested
ROCE
24.3%
Exceptional — 24.3% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-9.1%
Shrinking sales (-9.1% YoY)
Profit growth
EPS YoY
+7.1%
Modest earnings growth (+7.1% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
241%
Turns 241% of profit into real cash
Spare cash per sale
FCF Margin
10.9%
Modest free cash flow (10.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
1.19
Elevated debt (1.19)
Covers its interest
Interest Cover
26.83x
Comfortably covers interest (26.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
17.0x
Fair value — P/E 17.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+9.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (17.0 → 7.7)

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Dividends

Dividend
Dividend Yield
4.41%
Healthy income — 4.41% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+2.1%
Dividend flat

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