Core Insights - Houlihan Lokey has announced two strategic transactions to enhance its European platform and expand its global Corporate Finance capabilities [1] Group 1: Acquisition of Audere Partners - The firm has secured a controlling interest in Audere Partners, a leading French corporate finance firm, significantly enhancing its presence in France and positioning it as a top mid-cap advisory platform [2] - The transaction will add over 50 finance professionals to Houlihan Lokey, bringing the total number of its French team to around 80 [5] - Audere Partners is known for its expertise in French mid-cap advisory, primarily serving financial sponsors, entrepreneurs, and family-owned businesses [4] Group 2: Acquisition of Mellum Capital - Houlihan Lokey has acquired the real estate capital advisory business of Mellum Capital, which operates in Munich and London, further expanding its client support across the capital structure [3] - The Mellum Capital team, including founding partners Heinrich Hauss and Markus Reule, will join Houlihan Lokey as Managing Directors in the Capital Solutions Group [6] - The Mellum Capital business has been fully integrated into Houlihan Lokey, with a total of 11 professionals joining the firm [7] Group 3: Strategic Growth and Leadership Statements - The CEO of Houlihan Lokey emphasized the firm's growth in Europe, driven by a focus on delivering exceptional outcomes for clients through a differentiated offering [4] - The President of Houlihan Lokey, Europe, highlighted the importance of these transactions as milestones in the development of the European business, which now comprises approximately 550 financial professionals [4]

Core Insights - Houlihan Lokey, Inc. has appointed Géraud Estrangin as a Managing Director in its Industrials Group, focusing on aerospace and defense in Europe [1][2] Group 1: Appointment and Role - Géraud Estrangin will coordinate with the global Aerospace, Defense & Government team and support France-related transactions, enhancing the firm's European capabilities during a period of sustained deal activity [2] - Estrangin has nearly three decades of experience in investment banking and corporate finance, previously co-founding Lincoln International in Paris and leading the European Aerospace & Defense practice [3] Group 2: Leadership Comments - Bill Peluchiwski, Global Head of Industrials, expressed confidence that Estrangin's expertise will solidify Houlihan Lokey's position as a leading advisory platform in Europe and globally [4] - Matteo Manfredi, Co-Head of Industrials, Europe, highlighted Estrangin's exceptional track record and expertise in building advisory platforms, which will strengthen the Industrials Group [4] Group 3: Industry Performance - Houlihan Lokey's Industrials Group is recognized for its superior service in M&A advisory, capital-raising, restructuring, and financial advisory services [5] - The global Aerospace, Defense & Government practice has completed approximately 30 transactions in the past 18 months, indicating sustained momentum in the sector [5]

Group 1 - Houlihan Lokey, Inc. (NYSE:HLI) is recognized among 15 dividend stocks with low payout ratios and strong upside potential [1] - Keefe Bruyette has lowered its price target for Houlihan Lokey to $228 from $230 while maintaining an Outperform rating, citing a supportive economic backdrop expected in 2026 [2] - Fiscal Q2 2026 results showed revenue of $659 million, an increase from $575 million in the same quarter of the previous year, with net income rising to $112 million or $1.63 per diluted share compared to $94 million or $1.37 per diluted share a year earlier [3] Group 2 - Revenue growth was broad-based, with Corporate Finance revenue increasing by 21% year over year, Financial Restructuring revenue rising by 2%, and Financial and Valuation Advisory revenue climbing by 10% [4] - As of September 30, 2025, the company held $1.11 billion in unrestricted cash, cash equivalents, and investment securities, providing significant liquidity and flexibility [4] - Houlihan Lokey operates as a global investment bank with strengths in mergers and acquisitions, capital solutions, financial restructuring, and valuation and advisory services [5]

Core Insights - The article discusses the importance of low payout ratios in dividend stocks and highlights companies with strong upside potential and sustainable dividends [1][2][3] Dividend Payout Ratios - A high payout ratio indicates that a large portion of earnings is distributed to shareholders, leaving less for reinvestment [1] - Historical data shows that companies in the second quintile of payout ratios (averaging 40%) have outperformed those in the first quintile (averaging 75%) over multiple decades [2] - Companies with lower payout ratios are less likely to cut dividends during earnings declines, as they have more margin for error [3] Investment Methodology - The selection process involved screening for companies with a 5-year average payout ratio below 60%, indicating a strong cash position [6] - Stocks were further filtered to include those with a minimum upside potential of 25% based on analysts' targets as of December 24 [6] - The final list included 15 companies favored by hedge funds, as per Insider Monkey's database for Q3 2025 [6][7] Company Highlights - **Houlihan Lokey, Inc. (NYSE:HLI)**: - 5-Year Average Payout Ratio: 40.94% - Upside Potential: 26.3% - Recent revenue of $659 million, up from $575 million year-over-year, with net income rising to $112 million [9][10][11] - **Weyerhaeuser Company (NYSE:WY)**: - 5-Year Average Payout Ratio: 59.1% - Upside Potential: 32.1% - Recent initiatives include a joint venture with Aymium to produce sustainable biocarbon, with plans to convert over 7 million tons of wood fiber annually [13][15][16][17] - **Bunge Global SA (NYSE:BG)**: - 5-Year Average Payout Ratio: 22.6% - Upside Potential: 33.2% - Recent earnings per share reported at $0.86, with adjusted segment EBIT rising to $924 million [18][20][21]

Group 1 - Scott Adelson is the CEO of Houlihan Lokey and has over 35 years of experience with the firm, previously serving as Co-President and Global Head of Corporate Finance [1] - Anthony Martino is the Global Co-Head of Capital Solutions at Houlihan Lokey, focusing on raising debt and equity capital, and has been with the firm since 2013 [2]

Core Insights - Houlihan Lokey announced that Scott Adelson and Anthony Martino will present at Goldman Sachs' U.S. Financial Services Conference on December 9, 2025 [1] Company Information - The presentation will feature key insights from Houlihan Lokey's leadership, indicating the company's active engagement in the financial services sector [1] Industry Context - The participation in Goldman Sachs' conference highlights the importance of financial services events for networking and showcasing expertise within the industry [1]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Houlihan Lokey (HLI) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of future stock price gains [3] - Houlihan Lokey's historical EPS growth rate is 2.5%, but projected EPS growth for this year is 24.1%, surpassing the industry average of 19% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - Houlihan Lokey's year-over-year cash flow growth is 40.3%, significantly higher than the industry average of -3.5% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 15.9%, compared to the industry average of 11.7% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Current-year earnings estimates for Houlihan Lokey have been revised upward, with the Zacks Consensus Estimate increasing by 2.2% over the past month [8] Group 5: Overall Assessment - Houlihan Lokey has achieved a Zacks Rank 2 and a Growth Score of A, positioning it well for potential outperformance in the market [9]

Core Insights - Houlihan Lokey Inc. (HLI) has achieved a total return of 44% since January 24, 2024, outperforming the S&P 500 [1] Group 1 - The total return of Houlihan Lokey Inc. (HLI) is significantly higher than that of the S&P 500 during the same period [1]

Core Insights - Houlihan Lokey has strengthened its European Financial Sponsors Coverage team with the appointment of Neil Price as Managing Director in London, aiming to expand client relationships in the U.K. market and grow the overall sponsor business across Europe [1][2]. Company Developments - Neil Price joins from Mayfair Equity Partners, where he was Head of Originations, and has nearly two decades of experience at Lloyds Banking Group in senior leadership roles [3]. - The addition of Price follows the recent hiring of Martin Rezaie as Managing Director in Germany, indicating Houlihan Lokey's ongoing growth and leadership in advising financial sponsors [2][5]. Team and Expertise - The Financial Sponsors Group at Houlihan Lokey consists of over 35 professionals, including 24 Managing Directors across eight countries, managing approximately 1,900 relationships with private equity firms, credit funds, family offices, and sovereign wealth funds [5]. - The firm is recognized as a leading advisor to alternative capital providers, with a strong focus on delivering exceptional outcomes for financial sponsors [5]. Strategic Positioning - Neil Price's extensive experience in origination, structuring, and execution, along with his established relationships in the private market community, is expected to enhance the capabilities of the Financial Sponsors Coverage team [4][5]. - The firm emphasizes its global reach, deep market insight, and collaborative approach as key factors in helping clients execute complex transactions and create lasting value [5].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - Houlihan Lokey (HLI) is highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 2.5%, but projected EPS growth for the current year is expected to be 24.1%, surpassing the industry average of 19% [4] Group 2: Financial Metrics - Cash flow growth for Houlihan Lokey stands at 40.3% year-over-year, significantly higher than the industry average of -2.5% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 15.9%, compared to the industry average of 12% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Houlihan Lokey, with the Zacks Consensus Estimate for the current year increasing by 1.8% over the past month [7] - The combination of a Growth Score of A and a Zacks Rank of 2 indicates that Houlihan Lokey is positioned as a potential outperformer for growth investors [9]