MeritValue

HireQuest, Inc.

HQIdata completeness 63%17 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'

The thesis, from the filings

HireQuest, Inc. earns about 15% on invested capital, but has diluted owners by 3% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $4.69 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$21.3M1$28.9M2$35.8M3$32.7M4$29M4
Net income$11.9M5$12.5M6$6.14M7$3.67M8$6.33M8
Operating cash flow$17.4M9$16.9M10$10.6M11$12M12$12M12
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents—————
Diluted shares13.6M13.7M13.8M13.9M14.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$48.87
your share of equity
Profit it earned you last year
$4.53
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $48.87 of net worth that earned you $4.53 last year.

iii. Is this a good business?
Moat signal · return on invested capital
15% avg · 5y
FY21 26%FY22 21%FY23 12%FY24 7%FY25 10%

It earned an average 15% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+3% shares · 5y

Share count is up 3% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$4.69
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$6.33M
  • growthAssumed0.0%
Graham Number
$7.03
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437749-23-007413 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001437749-24-008879 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001437749-25-009646 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001437749-26-010435 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001437749-23-007413 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001437749-24-008879 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001437749-25-009646 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001437749-26-010435 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001437749-23-007413 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001437749-24-008879 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001437749-25-009646 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001437749-26-010435 (NetCashProvidedByUsedInOperatingActivities)