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Held by 125 of 2,417 reporting institutions (92th percentile) — extremely crowded.
Data as of Q3 2026
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Total shares institutions bought (green) vs sold (red) each quarter across all holders.
Inferred from quarter-over-quarter change in each fund's 13F position (new stakes count as buys, exits as sells). Not tick-level trades.
Ranked against 24 sector peers with collected financials. Valuation from latest close × latest fiscal-year fundamentals; 13F conviction as of 2026-09-30.
Percentile is “goodness” within the peer set (100 = best). For valuation and leverage that means cheaper / less-levered ranks higher.
| Company | Mkt cap ▼ | P/E | EV/EBITDA | P/S | Rev gr | Gross | Net | ROE | ROIC | Net D/EBITDA | 13F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BX | $89.0B | 30.6× | — | 6.2× | 9.2% | — | 20.9% | 34.8% | 14.2% | — | 721 |
| APO | $68.4B | 20.9× | — | 2.1× | 22.7% | — | 10.9% | 15.0% | 9.5% | — | — |
| AMP | $42.7B | 13.5× | — | 2.3× | 5.5% | — | 18.8% | 54.4% | 54.4% | — | 444 |
| TROW | $22.2B | 11.2× | — | 3.0× | 3.1% | — | 28.5% | 19.2% | 19.2% | — | 372 |
| BEN | $16.1B | 34.8× | 25.3× | 1.8× | 3.5% | — | 6.0% | 4.3% | 3.6% | 3.2× | 189 |
| CG | $14.3B | 18.4× | 9.1× | 3.0× | -11.9% | — | 16.9% | 11.5% | 11.5% | -1.5× | 146 |
| EVR | $11.2B | 20.7× | — | 2.9× | 29.5% | — | 15.3% | 29.1% | 29.1% | — | 147 |
| AMG | $9.9B | 16.8× | — | 4.8× | 1.6% | — | 34.5% | 22.1% | 12.1% | — | 131 |
| HLI | $9.6B | 22.2× | 14.7× | 3.7× | 9.5% | — | 16.3% | 18.2% | 18.2% | -2.1× | 125 |
| MORN | $8.4B | 25.5× | 12.6× | 3.4× | 7.5% | 61.0% | 15.3% | 30.6% | 16.3% | 0.8× | 92 |
| TPG | $7.8B | 103.7× | 12.1× | 1.7× | 33.4% | — | 4.0% | 4.5% | 3.2% | 1.2× | 67 |
| OWL | $7.1B | 103.3× | 21.3× | 12.4× | 7.6% | — | 13.9% | 3.6% | 1.4% | 6.5× | 138 |
| VCTR | $6.8B | 27.1× | 13.8× | 5.2× | 46.2% | — | 25.3% | 13.6% | 9.7% | 1.5× | 88 |
| FHI | $4.4B | 11.4× | 7.9× | 2.4× | 10.3% | — | 22.4% | 33.7% | 26.1% | -0.5× | 96 |
| LAZ | $3.7B | 17.7× | 11.0× | 1.2× | 1.5% | — | 7.4% | 27.2% | 9.3% | 0.6× | 77 |
| CNS | $3.7B | 24.4× | 19.1× | 6.7× | 7.5% | — | 27.6% | 27.3% | 27.3% | -0.8× | 65 |
| APAM | $2.6B | 9.0× | 6.8× | 2.2× | 7.6% | — | 24.3% | 66.2% | 46.2% | 0.5× | 79 |
| RPC | $1.0B | 54.2× | 20.2× | 3.4× | 0.3% | — | 6.6% | 4.8% | 2.5% | 5.1× | — |
| ABX | $828M | 23.5× | 11.1× | 3.5× | 110% | 87.7% | 15.5% | 8.7% | 4.4% | 3.4× | 19 |
| VRTS | $783M | 5.9× | 5.0× | 0.9× | -6.0% | — | 15.9% | 14.6% | 10.3% | 1.7× | 40 |
| GCMG | $773M | 30.1× | 7.0× | 1.4× | 8.5% | — | 8.1% | 168% | 10.0% | 1.4× | 18 |
| NOAH | $462M | 29.3× | — | 1.2× | 4.8% | — | 21.4% | 5.7% | 5.7% | — | 9 |
| HKHC | $405M | 80.4× | 30.2× | 5.6× | 30.5% | — | 7.0% | 1.5% | 1.5% | -3.0× | — |
| WHG | $180M | 23.9× | 28.1× | 1.8× | 3.2% | — | 7.2% | 5.6% | 5.6% | -4.8× | 14 |
| RILY | $136M | 0.4× | 12.1× | 0.1× | 29.6% | 85.0% | 31.8% | -179% | 24.5% | 10.8× | 15 |
Peers = companies sharing HLI's sector (Investment Advice) with collected SEC financials. Multiples use the most recent end-of-day close and latest fiscal-year fundamentals (trailing, not forward). Missing cells mean the peer never reported that line item, has no collected price, or has a non-positive denominator. Not investment advice.
Top 40 institutional holders — bubble size is position value, color is the move since last quarter. Hover any holder for detail.
Drag any bubble to rearrange · size = dollar value of the position
What the company returns to shareholders — and whether it's covered by cash.
The dividend is comfortably covered — only 26% of free cash flow, leaving room to grow it and fund buybacks. Last year: $174.0M dividends + $175.4M buybacks = $349.5M returned on $681.8M FCF.
Yields use the latest fiscal-year dividends/buybacks over current market cap. Dividends and buybacks from the SEC cash-flow statement; payout coverage vs net income and free cash flow. Educational — not a recommendation.
How management deployed cash over 10 years — and what it earned on reinvestment.
A cash-return story — far more went to shareholders than back into the business (mature, low-reinvestment).
Reinvestment has been productive — operating income grew well per dollar put in. Current ROIC on all capital: 18%. Rough measure (includes maintenance capex).
Cash uses aggregated from the SEC cash-flow statement over 10 fiscal years. "Return on reinvestment" is a rough proxy — operating-income change ÷ cumulative CapEx + M&A — and includes maintenance capex. Educational — not a recommendation.
EOD close · as of 2026-10-30
How a revenue dollar becomes profit — FY2026
Dividends and buybacks are cash paid out, shown here against the same year's profit for scale — not funded from it.
Each value shows its share of revenue below it (common-size).
| Line Item | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 | FY2018 | FY2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.62B 100.0% | $2.39B 100.0% | $1.91B 100.0% | $1.81B 100.0% | $2.27B 100.0% | $1.53B 100.0% | $1.16B 100.0% | $1.08B 100.0% | $963.4M 100.0% | $872.1M 100.0% |
| Gross Profit | — | $772.3M 32.3% | $571.1M 29.8% | $557.1M 30.8% | $795.3M 35.0% | $521.4M 34.2% | $322.5M 27.8% | $306.0M 28.2% | $277.6M 28.8% | $241.5M 27.7% |
| Total Operating Expenses | $2.09B 79.9% | $1.89B 79.0% | $1.54B 80.5% | $1.47B 81.1% | $1.66B 73.0% | $1.12B 73.2% | $929.8M 80.2% | $865.3M 79.8% | $749.0M 77.7% | $690.1M 79.1% |
| Operating Income | $527.0M 20.1% | $502.6M 21.0% | $373.2M 19.5% | $341.7M 18.9% | $612.9M 27.0% | $408.2M 26.8% | $229.6M 19.8% | $219.1M 20.2% | $214.4M 22.3% | $182.0M 20.9% |
| Other Income (Expense), net | $35.2M 1.3% | $28.8M 1.2% | $17.3M 0.9% | -$17.7M -1.0% | -$8.9M -0.4% | $1.1M 0.1% | $6.0M 0.5% | $5.2M 0.5% | $3.4M 0.4% | -$3.5M -0.4% |
| Pretax Income | $562.3M 21.5% | $531.3M 22.2% | $390.5M 20.4% | $324.0M 17.9% | $603.9M 26.6% | $409.2M 26.8% | $235.6M 20.3% | $224.3M 20.7% | $217.8M 22.6% | $178.5M 20.5% |
| Income Tax Expense | $138.1M 5.3% | $131.6M 5.5% | $110.2M 5.8% | $69.8M 3.9% | $165.6M 7.3% | $96.5M 6.3% | $51.9M 4.5% | $65.2M 6.0% | $45.6M 4.7% | $70.1M 8.0% |
| Net Income | $424.0M 16.2% | $400.0M 16.7% | $280.0M 14.6% | $254.0M 14.0% | $438.0M 19.3% | $312.8M 20.5% | $183.8M 15.9% | $159.1M 14.7% | $172.3M 17.9% | $108.3M 12.4% |
| Per Share | ||||||||||
| EPS (Basic) | $6.40 | $6.08 | $4.36 | $4.01 | $6.74 | $4.75 | $2.96 | $2.56 | $2.76 | $1.77 |
| EPS (Diluted) | $6.22 | $5.82 | $4.11 | $3.76 | $6.41 | $4.55 | $2.80 | $2.42 | $2.60 | $1.63 |
| Weighted Avg Shares (Basic) | 66.5M | 65.7M | 64.3M | 63.4M | 65.0M | 65.8M | 62.2M | 62.2M | 62.5M | 61.1M |
| Weighted Avg Shares (Diluted) | 68.4M | 68.7M | 68.2M | 67.6M | 68.3M | 68.7M | 65.7M | 65.8M | 66.3M | 66.6M |
Source: SEC EDGAR XBRL filings (annual, fiscal year). Quarterly flow items are derived from cumulative filings; balance-sheet figures are as-of each period end. Ratios and margins are computed, not reported.
Solve the discounted cash flow backwards, then stress-test the assumptions.
The same 3 years as the 3-yr average, with the stock compensation of those years charged as a cost. Shares issued to employees are real dilution, so this asks what the business generates for existing holders.
To be worth $138.00 today, the market must believe free cash flow compounds 7.7%/yr for a decade (off $405.4M on the SBC-adjusted basis).
On the basis ($584.2M) the requirement is 2.8%/yr. The difference is what charging stock compensation costs.
The market's 7.7% is more conservative than its 9-yr track record.
Default is 9.8% — this company's computed cost of capital (computed WACC), the same rate the Analysis tab discounts at.
2-stage DCF · 0.07B shares (market data) · net debt -$1.19B
mean 77.3% · volatility σ 213% · implied rate exceeded in 4/8 yrs
Central path = implied 7.7%/yr growth; shaded band = ±1σ (213%) of this company's historical FCF volatility, widening with time. The wider the band, the less certain the growth.
Reverse DCF: rather than guessing a fair value, we solve for the growth the current price implies, then you stress-test the assumptions. Enterprise value of the FCF stream, less net debt, ÷ shares. Educational — not a recommendation.
How much the company owes, how it's trended, and how comfortably it's serviced.
Cash of $1.19B (at 2026-03-31) covers all $123.3M of scheduled principal — no refinancing pressure. Scheduled principal only (excludes interest & revolver draws). As of 2021-12-31 (10-Q). The cash figure is from 2026-03-31, so the two are not the same balance-sheet date — the schedule has not been refiled since.
Green ≤ 1.5× · amber ≤ 3× · red > 3× (leverage relative to cash earnings).
Interest expense isn't separately reported — often netted into “other income (expense), net.”
Cash vs short-term debt unavailable.
Short-term / long-term split not separately reported.
Debt, cash, interest and equity from the SEC balance sheet & income statement. Effective rate = interest ÷ average debt. Maturity ladder from the SEC long-term-debt repayment schedule. Educational — not a recommendation.
Total return (dividends reinvested) vs the market, from quarter-end prices.
Above 0 = ahead of the S&P 500 since the window start; below 0 = behind. Rising means it's pulling ahead.
How far the stock fell below its prior peak. Deeper, longer drawdowns = a rougher ride to the same return.
Quarter-end, dividend-adjusted (total return). Beta & volatility from quarterly returns (annualized). Benchmark is the S&P 500 (SPY total return). Annual returns compound the quarters ending in each calendar year; the first and last years in a window may be partial. Past performance doesn't predict future results.
Last reported position per insider, carried forward. Steps can be a holding disclosed for the first time rather than a trade.
| Date | Insider | What it was | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-10-01 | Reichert Thomas Director | Grant | 925 | $0.00 | $0 |
| 2026-09-10 | 3 co-filers GENERAL COUNSEL | Other | 1,000 | $0.00 | $0 |
| 2026-09-10 | 3 co-filers GENERAL COUNSEL | Open-market sale | 1,000 | $140.15 | $140k |
| 2026-09-10 | 3 co-filers GENERAL COUNSEL | Other | 1,000 | $0.00 | — |
| 2026-08-03 | Alley J Lindsey |
Every row is classified by what it MEANT, not by its SEC code. A code is not a meaning: code P (“purchase”) also covers dividend reinvestment and employee stock purchase plans, and code S (“sale”) also covers 10b5-1 plan sales scheduled months earlier and option exercises sold the same day.
Across 30 days of all filings, $5.08bn of insider selling contained $3.50bn of plan sales and $0.46bn of exercise-and-sell. Only 29% was discretionary. Reading an unclassified feed badly overstates how much insiders decided.
Buys and sales are counted separately and never netted. They are different decisions by different people; a company where one officer bought while another sold is not “neutral”.
The holding line carries each insider's last reported position forward, so it shows the total held rather than a sawtooth of whoever traded that day. It covers only insiders who filed in the window.
“Filed late” counts calendar days past the two-business-day deadline with five days' grace, so a Thursday or Friday trade crossing a weekend is never flagged. It describes the company's filing discipline, not the trade.
Insider activity is descriptive. Nothing here is investment advice.
| Open-market buy |
| 4,020 |
| $124.52 |
| $501k |
| 2026-05-21 | 2 co-filers CO-CHAIRMAN | Grant | 19,815 | $0.00 | — |
| 2026-05-21 | 2 co-filers GENERAL COUNSEL | Grant | 3,197 | $0.00 | — |
| 2026-05-21 | 3 co-filers CEO | Grant | 13,952 | $0.00 | — |
| 2026-05-21 | 3 co-filers Chief Financial Officer | Grant | 3,778 | $0.00 | — |
| 2026-05-21 | 3 co-filers CO-CHAIRMAN | Other | 6,265 | $0.00 | $0 |
| 2026-05-21 | Walker Cyrus D. Director | Grant | 996 | $0.00 | $0 |
| 2026-05-21 | Bassey Ekpedeme M Director | Grant | 797 | $0.00 | $0 |
| 2026-05-21 | Zucker Gillian Beth Director | Grant | 996 | $0.00 | $0 |
| 2026-05-21 | Zuber Paul Andrew Director | Grantindirect | 797 | $0.00 | $0 |
| 2026-05-21 | Schriesheim Robert A Director | Grant | 1,129 | $0.00 | $0 |
| 2026-05-21 | Mund Ronald Scott Director | Grant | 476 | $0.00 | $0 |
| 2026-05-21 | 3 co-filers CO-CHAIRMAN | Open-market sale | 6,265 | $150.26 | $941k |
| 2026-05-21 | 3 co-filers Chief Financial Officer | Grant | 3,322 | $0.00 | — |
| 2026-05-21 | 3 co-filers CEO | Grant | 3,322 | $0.00 | — |
| 2026-05-21 | 2 co-filers GENERAL COUNSEL | Otherindirect | 3,197 | $0.00 | — |
| 2026-05-21 | 2 co-filers CO-CHAIRMAN | Otherindirect | 19,815 | $0.00 | — |
| 2026-05-21 | 3 co-filers CO-CHAIRMAN | Other | 6,265 | $0.00 | — |
| 2026-05-21 | 3 co-filers Chief Financial Officer | Otherindirect | 7,100 | $0.00 | — |
| 2026-05-21 | 3 co-filers CEO | Otherindirect | 17,274 | $0.00 | — |
| 2026-05-19 | Crain Christopher M GENERAL COUNSEL | Tax withholdingindirect | 2,107 | $150.35 | — |
| 2026-05-15 | Beiser Scott L CO-CHAIRMAN | Tax withholdingindirect | 6,497 | $150.35 | — |
| 2026-05-15 | Gold Irwin CO-CHAIRMAN | Tax withholdingindirect | 4,619 | $150.35 | — |
| 2026-05-15 | Carter Todd J Director | Tax withholdingindirect | 13,707 | $150.35 | — |
| 2026-05-15 | Alley J Lindsey Chief Financial Officer | Tax withholdingindirect | 2,983 | $150.35 | — |
| 2026-05-15 | Adelson Scott Joseph CEO | Tax withholdingindirect | 11,093 | $150.35 | — |
| 2026-05-15 | Siegert Paul Eric CO-CHAIRMAN | Tax withholdingindirect | 9,359 | $150.35 | — |
| 2026-04-01 | 3 co-filers GENERAL COUNSEL | Other | 500 | $0.00 | $0 |
| 2026-04-01 | 3 co-filers GENERAL COUNSEL | 10b5-1 plan sale | 500 | $143.40 | $72k |
| 2026-04-01 | 3 co-filers GENERAL COUNSEL | Other | 500 | $0.00 | — |
| 2026-02-06 | Schriesheim Robert A Director | Open-market sale | 5,000 | $170.86 | $854k |
| 2026-01-02 | 3 co-filers GENERAL COUNSEL | Other | 500 | $0.00 | $0 |
| 2026-01-02 | 3 co-filers GENERAL COUNSEL | 10b5-1 plan sale | 500 | $174.17 | $87k |
| 2026-01-02 | 3 co-filers GENERAL COUNSEL | Other | 500 | $0.00 | — |
| 2025-12-05 | 3 co-filers CO-CHAIRMAN | Other | 5,000 | $0.00 | $0 |
| 2025-12-05 | 3 co-filers CO-CHAIRMAN | Gift | 5,000 | $0.00 | $0 |
EOD close · as of 2026-10-30
Where each multiple sits in its own 11-yr range
Dot = today · shaded = middle 50% · line = median. Lower percentile = cheaper vs its own 11-yr history.
Is the profit real, and how strong is the balance sheet?
FY2026 · every deduction from revenue to net income
DuPont — the three levers
ROE 18% against ROIC 18% — 0% of the return on equity comes from leverage and buybacks rather than from the operating business.
What the company owes vs. what it holds
This shows debt/cash structure and net leverage. The year-by-year maturity schedule is on the Debt & Leverage tab.
Latest year: profit growth vs revenue growth
Low operating leverage — profit tracks sales closely (stable, less cyclical).
Each line as % of revenue — the trend in color
| % of revenue | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|
| Gross Profit | 28.2 | 27.8 | 34.2 | 35.0 | 30.8 | 29.8 | 32.3 | — |
| Operating Income | 20.2 | 19.8 | 26.8 | 27.0 | 18.9 | 19.5 | 21.0 | 20.1 |
| Income Tax | 6.0 | 4.5 | 6.3 | 7.3 | 3.9 | 5.8 | 5.5 | 5.3 |
| Net Income | 14.7 | 15.9 | 20.5 | 19.3 | 14.0 | 14.6 | 16.7 | 16.2 |
Green = margin-favorable vs the row's own range · red = unfavorable.
The metrics that matter, over time
A 30-second read on HLI: price, valuation and headline fundamentals from SEC filings. The four questions at the top of the page are where the judgements live.
Earns 18.31pts above its cost of capital, positive in 5 of the last 5 years.
| Period | ROIC | Cost of capital | Spread |
|---|---|---|---|
| FY2020 | 25.6% | 9.8% (today's — no rate published for this year) | 15.9pts |
| FY2021 | 48.6% | 9.8% (today's — no rate published for this year) | 38.8pts |
| FY2022 | 69.3% | 5.3% | 64.0pts |
| FY2023 | 27.1% | 8.0% | 19.2pts |
| FY2024 | 24.0% | 9.0% | 14.9pts |
| FY2025 | 29.8% | 9.5% | 20.3pts |
| FY2026 | 32.4% | 9.2% | 23.2pts |
| Now | 18.2% | 9.8% | 8.4pts |
| Fiscal year | Gross margin | Operating margin | Net margin |
|---|---|---|---|
| FY2017 | 27.7% | 20.9% | 12.4% |
| FY2018 | 28.8% | 22.3% | 17.9% |
| FY2019 | 28.2% | 20.2% | 14.7% |
| FY2020 | 27.8% | 19.8% | 15.9% |
| FY2021 | 34.2% | 26.8% | 20.5% |
| FY2022 | 35.0% | 27.0% | 19.3% |
| FY2023 | 30.8% | 18.9% | 14.0% |
| FY2024 | 29.8% | 19.5% | 14.6% |
| FY2025 | 32.3% | 21.0% | 16.7% |
| FY2026 | not reported | 20.1% | 16.3% |
Return on equity (18%) and return on invested capital (18%) are within a couple of points in FY2026, so the headline return is the operating return — there is no meaningful leverage effect to strip out.
No material counter-signal in the checked set: ROIC vs WACC spread, 5-year spread history, gross margin trend, operating margin trend, net margin against 3 years ago, revenue growth, ROIC ex-goodwill gap.
Converts 1.31x of reported profit into free cash flow over 5 years, with accruals negative.
Reported free cash flow is $682M; after share-based compensation it is $481M. The difference is a real cost that the cash flow statement adds back. Buybacks of $175M covered 87% of the $201M charge, so the repurchase is absorbing dilution rather than returning capital.
No debt, so there is no leverage path to distress.
This schedule comes from a filing dated 2021-12-31, 1765 days old. Maturities are shown relative to that date, not to today.
Ladder as of 2021-12-31 (10-Q); cash from the 2026-03-31 balance sheet; FCF from FY2026.
Balance sheet at 2026-03-31. Undrawn revolving credit is not shown: the tag is collected but not yet mapped through to the API.
No material counter-signal in the checked set: net debt / EBITDA, interest coverage, stressed coverage, maturity schedule vs cash and one year of FCF, liquidity ratios.
At $138.00, free cash flow must compound 7.73%/yr for 10 years. It has done 15.48%/yr over 6 years after stock compensation.
| Fiscal year | FCF growth | Price requires |
|---|---|---|
| FY2021 | 148.4% | 7.7% |
| FY2022 | 26.4% | 7.7% |
| FY2023 | −111.2% | 7.7% |
| FY2025 | 573.2% | 7.7% |
| FY2026 | −25.0% | 7.7% |
This is solved on free cash flow AFTER stock compensation ($405M against $584M before it). On the unadjusted figure the requirement would be 2.77%/yr. Which is right depends on whether you think the share issuance is a recurring cost of running the business.
| Step | Amount | Running total |
|---|---|---|
| Net income | $426M | $426M |
| Share-based comp | $201M | $627M |
| Other non-cash & working capital | $77M | $704M |
| Operating cash flow | $704M | $704M |
| Capex | −$22M | $682M |
| Free cash flow | $682M | $682M |
| FCF after SBC | $481M | $481M |
| Fiscal year | Revenue growth | Receivables growth | Gap |
|---|---|---|---|
| FY2021 | 31.6% | 34.0% | 2.4 points |
| FY2022 | 48.8% | 32.9% | -16.0 points |
| FY2023 | -20.3% | 26.4% | 46.7 points |
| FY2024 | 5.8% | 9.7% | 3.9 points |
| FY2025 | 24.8% | 28.9% | 4.1 points |
| FY2026 | 9.6% | -11.4% | -21.0 points |
| Fiscal year | DSO | DIO | DPO | Cash conversion cycle |
|---|---|---|---|---|
| FY2020 | 25.5 days | not reported | not reported | not reported |
| FY2021 | 25.9 days | not reported | not reported | not reported |
| FY2022 | 23.2 days | not reported | not reported | not reported |
| FY2023 | 36.7 days | not reported | not reported | not reported |
| FY2024 | 38.1 days | not reported | not reported | not reported |
| FY2025 | 39.3 days | not reported | not reported | not reported |
| FY2026 | 31.8 days | not reported | not reported | not reported |
| Fiscal year | Accruals / assets |
|---|---|
| FY2020 | -6.2 percent |
| FY2021 | -11.0 percent |
| FY2022 | -10.3 percent |
| FY2023 | 4.0 percent |
| FY2024 | -1.5 percent |
| FY2025 | -11.8 percent |
| FY2026 | -6.5 percent |
Below the line, the asset base is being consumed faster than it is replaced.
Below the line for 2 consecutive years to the latest.
Depreciation here includes amortisation of acquired intangibles — goodwill written down over time, customer lists, acquired technology. Capex does not replace those and is not meant to, so an acquisitive or asset-light company sits below 1.0 permanently and correctly. The signal is cleanest for capital-intensive businesses, where the two measure the same physical base. For that reason this informs the earnings-quality verdict but never caps it.
SBC is added back inside operating cash flow, so reported free cash flow treats shares issued to employees as free. Percent of revenue says how expensive the payroll is; percent of operating cash flow says how much of the cash exists only because the charge was added back. The buyback offset is buybacks over SBC — below 1.0 the repurchase does not cover the shares issued.
Figures are the latest fiscal year (FY2026) from the company's own filings, not a trailing-twelve-month window — Q2 reads fiscal years throughout so the cash-conversion ratios and these share one basis. A blank is a line the filer did not report; it is never read as zero.