HANESBRANDS INC (HBI) Stock Fundamental Analysis
NYSE:HBI - New York Stock Exchange, Inc. - US4103451021 - Common Stock - Currency: USD
Taking everything into account, HBI scores 3 out of 10 in our fundamental rating. HBI was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. HBI may be in some trouble as it scores bad on both profitability and health. HBI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
HBI had positive earnings in the past year.
In the past year HBI had a positive cash flow from operations.
In the past 5 years HBI reported 4 times negative net income.
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 -8.34%, HBI is doing worse than 75.00% of the companies in the same industry.
HBI's Return On Equity of -942.17% is on the low side compared to the rest of the industry. HBI is outperformed by 89.58% of its industry peers.
HBI's Return On Invested Capital of 12.65% is fine compared to the rest of the industry. HBI outperforms 70.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBI is below the industry average of 13.45%.
The last Return On Invested Capital (12.65%) for HBI is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.34% | ||
| ROE | -942.17% | ||
| ROIC | 12.65% |
ROA(3y)-3.54%
ROA(5y)-2.1%
ROE(3y)-326.11%
ROE(5y)-195.33%
ROIC(3y)9.25%
ROIC(5y)10.86%
1.3 Margins
HBI's Operating Margin of 11.84% is amongst the best of the industry. HBI outperforms 81.25% of its industry peers.
HBI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 41.36%, HBI is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
HBI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 41.36% |
OM growth 3Y-4.92%
OM growth 5Y-3.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
HBI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HBI has more shares outstanding
HBI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HBI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that HBI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.77, HBI is doing worse than 75.00% of the companies in the same industry.
HBI has a debt to FCF ratio of 10.08. This is a negative value and a sign of low solvency as HBI would need 10.08 years to pay back of all of its debts.
The Debt to FCF ratio of HBI (10.08) is worse than 60.42% of its industry peers.
HBI has a Debt/Equity ratio of 64.28. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 64.28, HBI is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 64.28 | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.22
WACC10.35%
2.3 Liquidity
HBI has a Current Ratio of 1.37. This is a normal value and indicates that HBI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, HBI is doing worse than 79.17% of the companies in the same industry.
HBI has a Quick Ratio of 1.37. This is a bad value and indicates that HBI is not financially healthy enough and could expect problems in meeting its short term obligations.
HBI has a worse Quick ratio (0.68) than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 440.00% over the past year.
HBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.96% yearly.
The Revenue has decreased by -3.63% in the past year.
HBI shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.40% yearly.
EPS 1Y (TTM)440%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%450%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-34.25%
3.2 Future
The Earnings Per Share is expected to grow by 14.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.94% on average over the next years.
EPS Next Y21.72%
EPS Next 2Y15.11%
EPS Next 3Y17.2%
EPS Next 5Y14.06%
Revenue Next Year-3.24%
Revenue Next 2Y-1.87%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.06, the valuation of HBI can be described as very reasonable.
81.25% of the companies in the same industry are more expensive than HBI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.82, HBI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.20, the valuation of HBI can be described as reasonable.
87.50% of the companies in the same industry are more expensive than HBI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HBI to the average of the S&P500 Index (21.76), we can say HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.2 |
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 72.92% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HBI is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.64 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
HBI's 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 17.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y15.11%
EPS Next 3Y17.2%
5. Dividend
5.1 Amount
No dividends for HBI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.89
-0.15 (-2.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change-4.87%
Ins Owners0.8%
Ins Owner Change4.67%
Market Cap1.73B
Analysts50.77
Price Target5 (2.25%)
Short Float %8.59%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.88%
Min EPS beat(2)17.38%
Max EPS beat(2)24.38%
EPS beat(4)4
Avg EPS beat(4)41.98%
Min EPS beat(4)17.38%
Max EPS beat(4)70.66%
EPS beat(8)6
Avg EPS beat(8)19.96%
EPS beat(12)8
Avg EPS beat(12)14.15%
EPS beat(16)11
Avg EPS beat(16)15.54%
Revenue beat(2)0
Avg Revenue beat(2)-8%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-7.43%
Revenue beat(4)0
Avg Revenue beat(4)-11.69%
Min Revenue beat(4)-27.34%
Max Revenue beat(4)-3.41%
Revenue beat(8)1
Avg Revenue beat(8)-7.11%
Revenue beat(12)2
Avg Revenue beat(12)-5.82%
Revenue beat(16)3
Avg Revenue beat(16)-3.99%
PT rev (1m)-22.63%
PT rev (3m)-22.63%
EPS NQ rev (1m)-3.54%
EPS NQ rev (3m)-23.05%
EPS NY rev (1m)4.33%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.2 | ||
| P/S | 0.49 | ||
| P/FCF | 7.64 | ||
| P/OCF | 6.54 | ||
| P/B | 50.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.48 |
EPS(TTM)0.54
EY11.04%
EPS(NY)0.6
Fwd EY12.19%
FCF(TTM)0.64
FCFY13.09%
OCF(TTM)0.75
OCFY15.28%
SpS9.92
BVpS0.1
TBVpS-4.22
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.34% | ||
| ROE | -942.17% | ||
| ROCE | 16.01% | ||
| ROIC | 12.65% | ||
| ROICexc | 13.8% | ||
| ROICexgc | 38.45% | ||
| OM | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 41.36% | ||
| FCFM | 6.45% |
ROA(3y)-3.54%
ROA(5y)-2.1%
ROE(3y)-326.11%
ROE(5y)-195.33%
ROIC(3y)9.25%
ROIC(5y)10.86%
ROICexc(3y)9.89%
ROICexc(5y)12.07%
ROICexgc(3y)24.54%
ROICexgc(5y)28.18%
ROCE(3y)11.7%
ROCE(5y)13.75%
ROICexcg growth 3Y-1.22%
ROICexcg growth 5Y5.88%
ROICexc growth 3Y-7.77%
ROICexc growth 5Y0.09%
OM growth 3Y-4.92%
OM growth 5Y-3.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y1.34%
F-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 64.28 | ||
| Debt/FCF | 10.08 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 41.16% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 1.73 | ||
| Cash Conversion | 52.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.77 |
F-Score4
WACC10.35%
ROIC/WACC1.22
Cap/Depr(3y)95.15%
Cap/Depr(5y)77.33%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)440%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%450%
EPS Next Y21.72%
EPS Next 2Y15.11%
EPS Next 3Y17.2%
EPS Next 5Y14.06%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-34.25%
Revenue Next Year-3.24%
Revenue Next 2Y-1.87%
Revenue Next 3Y-0.21%
Revenue Next 5Y0.94%
EBIT growth 1Y2.58%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year26.54%
EBIT Next 3Y9.56%
EBIT Next 5Y8.59%
FCF growth 1Y-56.28%
FCF growth 3Y-25.8%
FCF growth 5Y-20.26%
OCF growth 1Y-52.96%
OCF growth 3Y-24.88%
OCF growth 5Y-19.94%