QUOTE AND NEWS
Market Intelligence Center  Jun 25  Comment 
After closing Wednesday at $56.32, Robert Half International Inc. (RHI) presents an attractive opportunity to get a 3.15% return in just 85 days, which is an annualized return of 13.53% (for comparison purposes only). To enter this trade, sell one...
Clusterstock  Jun 22  Comment 
In theory, most of us know that taking an uninterrupted break from work allows us to refresh and recharge, so that we're more productive when we return. But new research suggests that the siren call of the smartphone is too much for some...
Market Intelligence Center  Jun 22  Comment 
For a hedged play on Robert Half International Inc. (RHI) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the Sep. '15 $55.00 covered call for a net debit in the $53.54 area. That is also the break-even stock price for...
TheStreet.com  Jun 16  Comment 
NEW YORK (TheStreet) — You may think you're going away on vacation and leaving workplace stress behind. Are you really? "As CEO of three companies, I am constantly tempted to check my email when on vacation," says Simon Slade, co-founder of...
Market Intelligence Center  Jun 5  Comment 
For a hedged play on Robert Half International Inc. (RHI) MarketIntelligenceCenter.com’s patented trade-picking algorithms recommend the Sep. '15 $55.00 covered call for a net debit in the $52.93 area. That is also the break-even stock price for...
TheStreet.com  Apr 28  Comment 
NEW YORK (TheStreet) -- The hiring of accountants and other finance experts, typically the last part of the labor market to rebound from an economic downturn, is beginning to outpace overall employment in the U.S. Big U.S. staffing firms --...
Market Intelligence Center  Apr 24  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on Robert Half International Inc. (RHI) that includes 9.77% downside protection. Sell one...
Forbes  Apr 22  Comment 
Wall Street is expecting higher profit for Robert Half International when the company reports its first quarter results on Thursday, April 23, 2015. The consensus estimate is calling for profit of 56 cents a share, a rise from 45 cents per share a...
Market Intelligence Center  Feb 18  Comment 
For a hedged play on Robert Half International Inc. (RHI), MarketIntelligenceCenter.com’s option-trade picking algorithms recommend the Jun. '15 $60.00 covered call for a net debit in the $57.84 area. That is also the break-even stock price for...




 

Robert Half International (NYSE:RHI) is a temporary staffing company. The company provides its customers with temporary, project, and full-time workers specializing in accounting and finance.[1] Though Robert Half competes with companies such as Adecco SA (ADO), Manpower (MAN), and Kelly Services (KELYA) in the temporary staffing market, its employees' high degree of specialization sets it apart from its peers. The company earned $3 billion in revenue and $37 million in net income in 2009.[2]

Robert Half uses its reputation for providing specialized financial and accounting workers to charge a premium price, making it the most profitable of the large temporary staffing companies. Despite Robert Half's advantages, several external factors, such as unemployment rates, which are hovering at 9% as of the sumer of 2010. On the other hand, higher demand for flexible workers has led to an increase in the average number of temporary workers employed on a given day. Additionally, because the company generates revenue overseas, a weak dollar also helps the company's revenues.

Company Overview

Business Segments

Temporary and Consultant Staffing (78% of net sales)

Temporary and Consultant Staffing provides customers with temporary and consultant workers. The workers are employed and paid by Robert Half and customers pay Robert Half a fee for hours worked. Temporary and Consultant Staffing operates under the following brand names:

  • Accountemps provides customers with temporary accounting workers to deal with predictable events such as vacations, tax season, and taking inventories as well as unpredictable events such as illness or emergencies.
  • OfficeTeam provides customers with full time temporary workers in administration and office settings. Employees range from word processors to office managers.
  • Robert Half Technology provides customers with experts in programming, networking, help desk support, etc. for technology consulting and full time worker placement.
  • Robert Half Legal provides customers with temporary and full time attorneys, paralegals, legal administrators, and legal secretaries.
  • Robert Half Management Resources provides customers with senior level finance and accounting professionals such as CFOs and senior financial analysts to assist with projects such as financial systems conversions, expansions into new markets, and post-merger financial consolidation.
  • The Creative Group supplies clients in the marketing, advertising, and web design businesses with project consultants that fill positions such as graphic designers, public relations specialists, and creative directors.

Permanent Placement Staffing (10% of net sales)

Permanent Placement Staffing provides customers with full time accounting and finance workers under the Robert Half Finance & Accounting brand name. Customers pay Robert Half Finance & Accounting a placement fee (usually a percentage of the new employees salary) to help them find new workers. Workers are not charged any fees by Robert Half Finance & Accounting. Additionally, customers sometimes hire a worker from one of Robert Half's Temporary and Consultant Staffing programs to work full time. If this happens, the customer pays Robert half a one-time fee to convert the worker from a temporary worker to a full-time employee.

Risk Consulting and Internal Audit Services (12% of net sales)

Risk Consulting and Internal Audit Services provides customers with independent internal audit and risk consulting services under the Protiviti brand name. Customers pay Protiviti a consulting fee for internal audit and risk management consulting.

Business Growth

FY 2009 (ended December 31, 2009)[2]

  • Net sales fell 34% to $3 billion. The company attributes the loss in revenue to the sluggish economy and high unemployment rate which has deceased the demand for temporary workers and increased the number of working applications.
  • Net income fell 85% to $37 million.

Trends and Forces

Increasing unemployment results in low demand for temporary workers

Temporary workers are generally the first hired as unemployment drops and the first fired as unemployment rises. Situations in which unemployment rises usually result in decreased demand for temporary workers. As of the summer of 2010, unemployment was 9% due to the sluggish global economy.[3]

Demand for flexible jobs and workers increases the demand for Robert Half's temp services

According to the American Staffing Association, two-thirds of temporary employees cite increased flexibility as their main reason for choosing to become a temporary or contract employee, along with having more time to spend with family.[4] Businesses also prefer to hire temporary workers because they can add employees during peak work periods without incurring the costs of hiring full time.

Competitors

  • Manpower (MAN)- Manpower is a world wide staffing agency with a presence in over 80 countries. Manpower gets 90% of its revenues from outside the US and is an international competitor for Robert Half. However, Manpower doesn't offer as many specialized temporary workers as Robert Half.
  • Adecco SA (ADO)- Adecco SA is a staffing agency based in Switzerland. It offers some specialized labor, but for the most part offers unspecialized labor, much like Manpower (MAN).
  • Kelly Services (KELYA)- Kelly Services provides scientific temporary workers in IT, engineering, and financial services. The company has a presence in 36 countries.

References

  1. RHI 2009 10-K "Business" pg. 1
  2. 2.0 2.1 RHI 2009 10-K "Selected Financial Data" pg. 11
  3. RHI 2009 10-K pg. 4
  4. Staffing Industry Economic Analysis
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