Hackett Group Inc Dossier
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SectorInformation Technology IndustryIT Consulting & Other Services Beta (adjusted)0.95 Intrinsic Value $11.68median of 5 methods · middle span $11-$20based on filings through 26 Jun 2026 Market Price $10.97Price as of 1 Oct 2026 Near fair valueIntrinsic value is 6% above the market price −50% · IV below pricenear fair value ±15%IV above price · +50% Data confidence Sign in to view data confidence Market Cap $272.9M Enterprise Value $339.6M Shares Outstanding 24.7M diluted Moat Rating Wide Next Earnings Date6 Nov 2026 Last ex-dividend22 Jun 2026 All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference. ThesisStreet consensus, scenarios, merits, risks, and invalidation triggers Thesis Summary The Hackett Group is undergoing a critical strategic transition from a project-based IT consulting firm to an IP platform-based Generative AI strategic advisory and digital transformation model. While this transition has caused near-term top-line contraction (revenue down 11% YoY in Q1 2026) and margin compression due to restructuring costs, the market has overly discounted the stock. The company's proprietary benchmarking databases and its strategic partnership with IBM to leverage AI tools position it as a highly resilient survivor. At current depressed valuations, the stock offers an attractive risk-reward profile backed by a solid 4.4% dividend yield. This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today. Street view · analyst 12-month targets Low · most bearish analyst$16.00 Mean target$17.67 High · most bullish analyst$20.00 Our research · scenarios, merits, risks, and invalidation triggersResearch as of 19 Jun 2026 Scenarios · 12-month scenario targets Bear CaseDownside scenario Macroeconomic headwinds and client budget constraints persist, prolonging the decline in consulting spend. The transition to AI-enabled delivery fails to offset the loss of traditional project-based revenues, and high leverage from recent aggressive share buybacks limits financial flexibility. Base CaseCentral scenario The company successfully stabilizes its revenue in the second half of 2026 as client hesitancy around AI ROI eases. Sequential growth in SAP Solutions and gradual recovery in Oracle implementations, combined with cost-saving measures from recent restructurings, drive adjusted EPS back toward historical levels. The stock rerates as recurring IP-platform revenues increase. Bull CaseUpside scenario The bull case for Hackett Group centers on its strategic transition to an AI platform-enabled delivery model, which is expected to drive significant margin expansion and sequential earnings growth starting in Q3 2026. Strategic partnerships, particularly with IBM and ServiceNow, are projected to accelerate client adoption of Hackett's proprietary AI XPLR and ZBrain platforms. Furthermore, the stock trades at a significant discount to its estimated DCF fair value, offering substantial valuation upside as earnings rebound. Scenarios are anchored to street consensus at the research date, with our probabilities and rationale. Key Investment Merits
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All scenarios are estimates and subject to change. Past performance is not indicative of future results. Quality Pillars MembersThis section is available to registered members. Create a free account or sign in to unlock the full breakdown. Explore this dossierValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework. |