HANESBRANDS INC (HBI)
US4103451021 - Common Stock
Taking everything into account, HBI scores 3 out of 10 in our fundamental rating. HBI was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of HBI have multiple concerns. HBI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HBI was profitable.
HBI had a positive operating cash flow in the past year.
In multiple years HBI reported negative net income over the last 5 years.
Of the past 5 years HBI 4 years had a positive operating cash flow.
1.2 Ratios
HBI has a Return On Assets of -0.40%. This is in the lower half of the industry: HBI underperforms 62.00% of its industry peers.
HBI has a Return On Equity of -6.65%. This is in the lower half of the industry: HBI underperforms 66.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.13%, HBI is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
HBI had an Average Return On Invested Capital over the past 3 years of 10.94%. This is in line with the industry average of 10.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -6.65% | ||
| ROIC | 8.13% |
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
Looking at the Operating Margin, with a value of 7.87%, HBI is in line with its industry, outperforming 56.00% of the companies in the same industry.
In the last couple of years the Operating Margin of HBI has declined.
HBI has a Gross Margin of 36.57%. This is in the lower half of the industry: HBI underperforms 76.00% of its industry peers.
In the last couple of years the Gross Margin of HBI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.87% | ||
| PM (TTM) | N/A | ||
| GM | 36.57% |
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. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HBI is creating some value.
The number of shares outstanding for HBI has been increased compared to 1 year ago.
The number of shares outstanding for HBI has been reduced compared to 5 years ago.
Compared to 1 year ago, HBI has an improved debt to assets ratio.
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: 72.00% of the companies in the same industry are doing better.
HBI has a debt to FCF ratio of 6.55. This is a slightly negative value and a sign of low solvency as HBI would need 6.55 years to pay back of all of its debts.
HBI has a Debt to FCF ratio of 6.55. This is in the lower half of the industry: HBI underperforms 62.00% of its industry peers.
HBI has a Debt/Equity ratio of 9.57. This is a high value indicating a heavy dependency on external financing.
HBI's Debt to Equity ratio of 9.57 is on the low side compared to the rest of the industry. HBI is outperformed by 96.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.57 | ||
| Debt/FCF | 6.55 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.91
WACC8.93%
2.3 Liquidity
HBI has a Current Ratio of 1.59. This is a normal value and indicates that HBI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HBI (1.59) is worse than 74.00% of its industry peers.
A Quick Ratio of 0.62 indicates that HBI may have some problems paying its short term obligations.
The Quick ratio of HBI (0.62) is worse than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
HBI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -82.76%.
HBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -49.01% yearly.
Looking at the last year, HBI shows a very negative growth in Revenue. The Revenue has decreased by -10.64% in the last year.
The Revenue has been decreasing by -3.69% on average over the past years.
EPS 1Y (TTM)-82.76%
EPS 3Y-65.41%
EPS 5Y-49.01%
EPS Q2Q%66.67%
Revenue 1Y (TTM)-10.64%
Revenue growth 3Y-2.74%
Revenue growth 5Y-3.69%
Sales Q2Q%-16.78%
3.2 Future
Based on estimates for the next years, HBI will show a very strong growth in Earnings Per Share. The EPS will grow by 92.98% on average per year.
The Revenue is expected to grow by 1.11% on average over the next years.
EPS Next Y649.08%
EPS Next 2Y230.31%
EPS Next 3Y136.32%
EPS Next 5Y92.98%
Revenue Next Year-9.32%
Revenue Next 2Y-4.15%
Revenue Next 3Y-3.94%
Revenue Next 5Y1.11%
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
Based on the Price/Earnings ratio of 61.40, the valuation of HBI can be described as expensive.
Based on the Price/Earnings ratio, HBI is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 24.41. HBI is valued rather expensively when compared to this.
HBI is valuated reasonably with a Price/Forward Earnings ratio of 9.38.
Based on the Price/Forward Earnings ratio, HBI is valued cheaper than 94.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HBI to the average of the S&P500 Index (20.59), we can say HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.4 | ||
| Fwd PE | 9.38 |
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 62.00% of the companies listed in the same industry.
96.00% of the companies in the same industry are more expensive than HBI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.29 | ||
| EV/EBITDA | 9.61 |
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 136.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y230.31%
EPS Next 3Y136.32%
5. Dividend
5.1 Amount
No dividends for HBI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HANESBRANDS INC
NYSE:HBI (7/26/2024, 7:04:00 PM)
After market: 6.1 -0.04 (-0.65%)6.14
+0.47 (+8.29%)
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 Cap2.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.4 | ||
| Fwd PE | 9.38 | ||
| 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)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -6.65% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.87% | ||
| PM (TTM) | N/A | ||
| GM | 36.57% | ||
| 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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 0.62 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-82.76%
EPS 3Y-65.41%
EPS 5Y
EPS Q2Q%
EPS Next Y649.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.64%
Revenue growth 3Y-2.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y