# The Hackett Group (HCKT.US)

Canonical: https://gigainvestors.com/s/HCKT

Analysis as of: 2026-10-16T07:28:59.023Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $11.66 per share; close as of 2026-10-15.

Estimated value: low $14.66 per share, central $16.64 per share, high $19.27 per share. Buy at or below the central value $16.64 per share. Valuation as of 2026-10-16T07:28:59.023Z; scenarios are not confidence intervals.

Expected annual return: 13.2% at the stated quote. About 13.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.11×

- FY2018: 0.12×

- FY2019: 0.11×

- FY2020: 0.04×

- FY2021: 0.17×

- FY2022: 0.19×

- FY2023: 0.17×

- FY2024: 0.14×

- FY2025: 0.09×

### moat: pass

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 46.7%

- Typical minus recent gross margin: -2.0 pp

- Typical gross margin (annual median): 36.4%

- Recent gross margin (lower of latest and 3-year median): 38.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 23.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: >100%

- FY2018: 47.8%

- FY2019: 67.1%

- FY2020: 46.7%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: 44.7%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $157M

- Net income, five-year total: $159M

- Return on incremental invested capital: -22.3%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 0.8 pp

- Working capital / revenue, final three-year average: 16.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.00×

- FY2023: 0.99×

- FY2024: 1.00×

- FY2025: 0.79×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 117.7% vs 122.4%

- Per-share earnings: 0.74 to 1.05 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -2.9%

- Market cap gain: -$32M

- Cumulative retained earnings: $135M

- Diluted shares, 5-year annual growth: -2.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.2%

- Per-share value change: $0.32

- Per-share value, starting three-year median: $0.74

- Per-share value, ending three-year median: $1.05

- Buybacks concentrated in cheaper years (correlation): 0.16

- Average buyback yield: 4.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $26M

- Cumulative net income, 10 years: $261M

- ROIC, first three-year median: >100%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.66

- FY2017: $0.85

- FY2018: $0.74

- FY2019: $0.72

- FY2020: $0.17

- FY2021: $1.26

- FY2022: $1.28

- FY2023: $1.24

- FY2024: $1.05

- FY2025: $0.46

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -13.4%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 76.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.11×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.38×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.1%

- FY2017: 0.5%

- FY2018: -4.7%

- FY2019: -9.9%

- FY2020: -20.0%

- FY2021: -2.3%

- FY2022: -9.8%

- FY2023: -1.8%

- FY2024: -9.4%

- FY2025: -13.4%

## Holders

## Price story

Down 63% since Nov 2024 · sales -2.6%

Story as of 2026-10-16T09:58:52.101Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.7% a year for ten years

### Sales · FY2024–2025

sales -2.6%; source https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm; observed 2026-02-27.

- FY2016: $289M 

- FY2017: $286M 

- FY2018: $286M 

- FY2019: $282M 

- FY2020: $239M 

- FY2021: $279M 

- FY2022: $294M 

- FY2023: $297M 

- FY2024: $314M 

- FY2025: $306M 

### Gross margin · FY2025

gross margin 38.3%; source https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm; observed 2026-02-27.

- FY2016: 33.5% 

- FY2017: 33.9% 

- FY2018: 34.8% 

- FY2019: 34.3% 

- FY2020: 30.5% 

- FY2021: 37.9% 

- FY2022: 39.3% 

- FY2023: 39.2% 

- FY2024: 39.3% 

- FY2025: 38.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 305.6 million.

- Source: https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm (filed 2026-02-27); FY2025: revenue 305626000; grossProfit 117165000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-04); HCKT.US: The Hackett Group, Inc. operates as an intellectual property platform-based generative artificial intelligence strategic consulting and executive advisory digital transformation in the United States, Europe, and internationally. The company offers Hackett AI XPLR, an enterprise-wide Gen AI assessment, ideation and solution design platform; XT, a Gen AI"enabled business transformation acceleration platform; AIXelerator, a platform designed to support enterprise application implementation and modernization engagements; Ask Hackett and Hackett Connect, a Gen AI"assisted knowledge and insight capability that enables Hackett associates to support delivery of executive advisory and applied intelligence programs; Quantum Leap, a software-as-a-service platform, and Digital Transformation Platform, a platform that translate benchmark insight into actionable execution steps; and ZBrain, a Gen AI engineering and agentic workflow build capability. It also provides Gen AI"enabled delivery platforms including, supply chain and operation, finance, human resources, information technology, procurement, corporate services, as well as selected enterprise application implementation services, including Oracle, SAP, OneStream, and eProcurement applications. In addition, the company offers oracle solutions that help clients to choose and deploy oracle applications that meet needs and objectives; SAP solutions, including planning, architecture, and vendor evaluation and selection through implementation, customization, testing, and integration; post-implementation support, change and exception management, process transparency, system documentation, and end-user training; off-shore application development, and application maintenance and support services; and sells SAP suite of applications. The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in 2008. The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.

### Why customers stay

Margins ranged from 38.3% to 39.3% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 39.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 39.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 38.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,28.905341055341054],[2017,1.1770146489865585],[2018,0.47825510999645454],[2019,0.6710528992118667],[2020,0.467329222253873],[2021,2.4840179566038936],[2022,7.268767845689422],[2023,1.8932610238000036],[2024,1.2241467011643248],[2025,0.44676915933654915]]; median 1.2005806750754418. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 39% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm (filed 2026-02-27); Gross margin observations: [[2021,0.37897987511163556],[2022,0.39346092829762175],[2023,0.3924002832192589]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 69.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 0; upkeep 3179000; owner earnings 21947000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 0; upkeep 6517000; owner earnings 25369000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 1551.8877156935632; upkeep 9635448.112284306; owner earnings 19107551.887715694. Growth capex / owner earnings = 0.00008121855300004586.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 4568000; owner earnings 22951000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 1893000; owner earnings 8059000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 3242000; owner earnings 42680000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 1174367.323898334; upkeep 3481632.676101666; owner earnings 40757367.32389833. Growth capex / owner earnings = 0.02881362072691424.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 225843.4239760642; upkeep 3875156.576023936; owner earnings 33696843.423976064. Growth capex / owner earnings = 0.00670221305700615.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 161000; upkeep 3918000; owner earnings 29630000. Growth capex / owner earnings = 0.005433682078974013.

- Source: https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 7867000; owner earnings 10256000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,7163000],[2017,8670000],[2018,10048000],[2019,11196000],[2020,14937000],[2021,12885000],[2022,10437000],[2023,11972000],[2024,12112000],[2025,12903000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm (filed 2026-02-27); FY2025: cash repurchases 69149000 USD.

### What the price says

The price assumes cash profits shrink 3.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate -0.06458647595110495. Price 11.66; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $16.12 per share

- 2016-11: $17.76 per share

- 2016-12: $17.66 per share

- 2017-01: $16.25 per share

- 2017-02: $20.16 per share

- 2017-03: $19.49 per share

- 2017-04: $19.83 per share

- 2017-05: $14.66 per share

- 2017-06: $15.50 per share

- 2017-07: $16.42 per share

- 2017-08: $13.66 per share

- 2017-09: $15.19 per share

- 2017-10: $15.44 per share

- 2017-11: $16.33 per share

- 2017-12: $15.71 per share

- 2018-01: $16.01 per share

- 2018-02: $18.03 per share

- 2018-03: $16.06 per share

- 2018-04: $16.21 per share

- 2018-05: $16.10 per share

- 2018-06: $16.07 per share

- 2018-07: $18.03 per share

- 2018-08: $20.47 per share

- 2018-09: $20.15 per share

- 2018-10: $20.47 per share

- 2018-11: $17.65 per share

- 2018-12: $16.01 per share

- 2019-01: $17.99 per share

- 2019-02: $16.26 per share

- 2019-03: $15.80 per share

- 2019-04: $15.35 per share

- 2019-05: $16.09 per share

- 2019-06: $16.79 per share

- 2019-07: $16.42 per share

- 2019-08: $16.13 per share

- 2019-09: $16.46 per share

- 2019-10: $16.91 per share

- 2019-11: $15.33 per share

- 2019-12: $16.14 per share

- 2020-01: $15.46 per share

- 2020-02: $15.40 per share

- 2020-03: $12.72 per share

- 2020-04: $14.83 per share

- 2020-05: $13.79 per share

- 2020-06: $13.54 per share

- 2020-07: $13.79 per share

- 2020-08: $12.61 per share

- 2020-09: $11.18 per share

- 2020-10: $12.92 per share

- 2020-11: $14.08 per share

- 2020-12: $14.39 per share

- 2021-01: $13.62 per share

- 2021-02: $15.62 per share

- 2021-03: $16.39 per share

- 2021-04: $16.63 per share

- 2021-05: $17.81 per share

- 2021-06: $18.02 per share

- 2021-07: $17.92 per share

- 2021-08: $19.60 per share

- 2021-09: $19.62 per share

- 2021-10: $21.14 per share

- 2021-11: $20.46 per share

- 2021-12: $20.53 per share

- 2022-01: $19.14 per share

- 2022-02: $20.72 per share

- 2022-03: $23.06 per share

- 2022-04: $23.49 per share

- 2022-05: $20.49 per share

- 2022-06: $18.97 per share

- 2022-07: $20.97 per share

- 2022-08: $20.53 per share

- 2022-09: $17.72 per share

- 2022-10: $21.84 per share

- 2022-11: $23.10 per share

- 2022-12: $20.37 per share

- 2023-01: $22.10 per share

- 2023-02: $18.64 per share

- 2023-03: $18.48 per share

- 2023-04: $18.56 per share

- 2023-05: $19.39 per share

- 2023-06: $22.35 per share

- 2023-07: $23.25 per share

- 2023-08: $23.57 per share

- 2023-09: $23.59 per share

- 2023-10: $22.29 per share

- 2023-11: $22.31 per share

- 2023-12: $22.77 per share

- 2024-01: $23.12 per share

- 2024-02: $24.72 per share

- 2024-03: $24.30 per share

- 2024-04: $21.69 per share

- 2024-05: $22.31 per share

- 2024-06: $21.72 per share

- 2024-07: $27.28 per share

- 2024-08: $26.50 per share

- 2024-09: $26.27 per share

- 2024-10: $24.32 per share

- 2024-11: $31.34 per share

- 2024-12: $30.72 per share

- 2025-01: $30.88 per share

- 2025-02: $30.38 per share

- 2025-03: $29.22 per share

- 2025-04: $25.54 per share

- 2025-05: $24.52 per share

- 2025-06: $25.42 per share

- 2025-07: $23.39 per share

- 2025-08: $20.82 per share

- 2025-09: $19.01 per share

- 2025-10: $18.11 per share

- 2025-11: $18.47 per share

- 2025-12: $19.63 per share

- 2026-01: $18.25 per share

- 2026-02: $13.66 per share

- 2026-03: $13.01 per share

- 2026-04: $12.91 per share

- 2026-05: $11.53 per share

- 2026-06: $10.77 per share

- 2026-07: $10.72 per share

- 2026-08: $11.21 per share

- 2026-09: $10.05 per share

- 2026-10: $11.66 per share

## Annual estimated value (USD per share)

- FY2020: low $7.52 per share, central $8.37 per share, high $9.50 per share

- FY2021: low $8.75 per share, central $9.79 per share, high $11.17 per share

- FY2022: low $8.92 per share, central $10.05 per share, high $11.55 per share

- FY2023: low $13.87 per share, central $15.71 per share, high $18.15 per share

- FY2024: low $14.23 per share, central $16.15 per share, high $18.69 per share

- FY2025: low $14.03 per share, central $15.91 per share, high $18.40 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1057379/000119312526082863/hckt-20251226.htm); period 2025-12-26, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.