HANESBRANDS INC (HBI)

US4103451021 - Common Stock

5.15  +0.29 (+5.97%)

Fundamental Rating

3

Taking everything into account, HBI scores 3 out of 10 in our fundamental rating. HBI was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. HBI has a bad profitability rating. Also its financial health evaluation is rather negative. HBI has a valuation in line with the averages, but on the other hand it scores bad on growth.



3

1. Profitability

1.1 Basic Checks

In the past year HBI was profitable.
In the past year HBI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HBI reported negative net income in multiple years.
Of the past 5 years HBI 4 years had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -0.31%, HBI is in line with its industry, outperforming 42.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of -4.23%, HBI is doing worse than 60.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.52%, HBI is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HBI is in line with the industry average of 10.03%.
Industry RankSector Rank
ROA -0.31%
ROE -4.23%
ROIC 7.52%
ROA(3y)-0.39%
ROA(5y)1.2%
ROE(3y)-8.39%
ROE(5y)2.82%
ROIC(3y)10.94%
ROIC(5y)11.34%

1.3 Margins

HBI has a Operating Margin of 7.18%. This is comparable to the rest of the industry: HBI outperforms 46.00% of its industry peers.
In the last couple of years the Operating Margin of HBI has declined.
HBI has a Gross Margin of 34.92%. This is in the lower half of the industry: HBI underperforms 76.00% of its industry peers.
HBI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 7.18%
PM (TTM) N/A
GM 34.92%
OM growth 3Y-17.27%
OM growth 5Y-12.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2%
GM growth 5Y-2.46%

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HBI is creating some value.
HBI has more shares outstanding than it did 1 year ago.
HBI has less shares outstanding than it did 5 years ago.
HBI has a better debt/assets ratio than last year.

2.2 Solvency

HBI has an Altman-Z score of 1.76. This is a bad value and indicates that HBI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.76, HBI is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
The Debt to FCF ratio of HBI is 6.38, which is on the high side as it means it would take HBI, 6.38 years of fcf income to pay off all of its debts.
HBI has a Debt to FCF ratio of 6.38. This is comparable to the rest of the industry: HBI outperforms 44.00% of its industry peers.
A Debt/Equity ratio of 7.72 is on the high side and indicates that HBI has dependencies on debt financing.
HBI's Debt to Equity ratio of 7.72 is on the low side compared to the rest of the industry. HBI is outperformed by 96.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.72
Debt/FCF 6.38
Altman-Z 1.76
ROIC/WACC0.84
WACC9%

2.3 Liquidity

A Current Ratio of 1.64 indicates that HBI should not have too much problems paying its short term obligations.
HBI's Current ratio of 1.64 is on the low side compared to the rest of the industry. HBI is outperformed by 72.00% of its industry peers.
A Quick Ratio of 0.65 indicates that HBI may have some problems paying its short term obligations.
With a Quick ratio value of 0.65, HBI is not doing good in the industry: 86.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 0.65

3

3. Growth

3.1 Past

The earnings per share for HBI have decreased strongly by -93.88% in the last year.
The earnings per share for HBI have been decreasing by -49.01% on average. This is quite bad
Looking at the last year, HBI shows a decrease in Revenue. The Revenue has decreased by -9.58% in the last year.
Measured over the past years, HBI shows a decrease in Revenue. The Revenue has been decreasing by -3.69% on average per year.
EPS 1Y (TTM)-93.88%
EPS 3Y-65.41%
EPS 5Y-49.01%
EPS growth Q2Q-57.14%
Revenue 1Y (TTM)-9.58%
Revenue growth 3Y-2.74%
Revenue growth 5Y-3.69%
Revenue growth Q2Q-11.98%

3.2 Future

HBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 96.72% yearly.
HBI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.20% yearly.
EPS Next Y708.49%
EPS Next 2Y253.7%
EPS Next 3Y190.74%
EPS Next 5Y96.72%
Revenue Next Year-1.93%
Revenue Next 2Y-0.27%
Revenue Next 3Y1.79%
Revenue Next 5Y2.2%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 85.83, the valuation of HBI can be described as expensive.
62.00% of the companies in the same industry are cheaper than HBI, based on the Price/Earnings ratio.
HBI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.81.
Based on the Price/Forward Earnings ratio of 10.62, the valuation of HBI can be described as reasonable.
Based on the Price/Forward Earnings ratio, HBI is valued cheaply inside the industry as 86.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, HBI is valued rather cheaply.
Industry RankSector Rank
PE 85.83
Fwd PE 10.62

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBI indicates a somewhat cheap valuation: HBI is cheaper than 66.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HBI is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.48
EV/EBITDA 9.41

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HBI's earnings are expected to grow with 190.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y253.7%
EPS Next 3Y190.74%

0

5. Dividend

5.1 Amount

No dividends for HBI!.
Industry RankSector Rank
Dividend Yield N/A

HANESBRANDS INC

NYSE:HBI (2/27/2024, 2:41:04 PM)

5.15

+0.29 (+5.97%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.80B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 85.83
Fwd PE 10.62
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.12
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.31%
ROE -4.23%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.18%
PM (TTM) N/A
GM 34.92%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1
Health
Industry RankSector Rank
Debt/Equity 7.72
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.64
Quick Ratio 0.65
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-93.88%
EPS 3Y-65.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y708.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.58%
Revenue growth 3Y-2.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y