HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - NYSE:HBI - US4103451021 - Common Stock
6.61 USD
-0.03 (-0.45%)
6.61 USD
0 (0%)
Overall HBI gets a fundamental rating of 3 out of 10. We evaluated HBI against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. While HBI is still in line with the averages on profitability rating, there are concerns on its financial health. HBI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HBI had positive earnings in the past year.
HBI had a positive operating cash flow in the past year.
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
HBI has a Return On Assets (2.22%) which is in line with its industry peers.
HBI has a better Return On Equity (53.63%) than 97.92% of its industry peers.
HBI has a better Return On Invested Capital (13.28%) than 77.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBI is below the industry average of 12.23%.
The last Return On Invested Capital (13.28%) for HBI is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 53.63% | ||
| ROIC | 13.28% |
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
With a Profit Margin value of 2.56%, HBI perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
HBI has a Operating Margin of 13.47%. This is amongst the best in the industry. HBI outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of HBI has declined.
Looking at the Gross Margin, with a value of 42.19%, HBI is doing worse than 60.42% of the companies in the same industry.
In the last couple of years the Gross Margin of HBI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 2.56% | ||
| GM | 42.19% |
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.
The number of shares outstanding for HBI has been increased compared to 1 year ago.
Compared to 5 years ago, HBI has less shares outstanding
HBI has a worse debt/assets ratio than last year.
2.2 Solvency
HBI has an Altman-Z score of 1.91. This is not the best score and indicates that HBI is in the grey zone with still only limited risk for bankruptcy at the moment.
HBI has a worse Altman-Z score (1.91) than 79.17% of its industry peers.
HBI has a debt to FCF ratio of 41.06. This is a negative value and a sign of low solvency as HBI would need 41.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 41.06, HBI is doing worse than 62.50% of the companies in the same industry.
HBI has a Debt/Equity ratio of 13.62. This is a high value indicating a heavy dependency on external financing.
HBI's Debt to Equity ratio of 13.62 is on the low side compared to the rest of the industry. HBI is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.22
WACC10.85%
2.3 Liquidity
HBI has a Current Ratio of 1.52. This is a normal value and indicates that HBI is financially healthy and should not expect problems in meeting its short term obligations.
HBI's Current ratio of 1.52 is on the low side compared to the rest of the industry. HBI is outperformed by 75.00% of its industry peers.
HBI has a Quick Ratio of 1.52. This is a bad value and indicates that HBI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, HBI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
HBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 142.31%, which is quite impressive.
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 for HBI has decreased by -23.93% in the past year. This is quite bad
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)142.31%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%60%
Revenue 1Y (TTM)-23.93%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-0.41%
3.2 Future
HBI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.06% yearly.
The Revenue is expected to grow by 0.83% on average over the next years.
EPS Next Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y14.06%
Revenue Next Year-2.25%
Revenue Next 2Y-1.67%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.49 indicates a reasonable valuation of HBI.
Based on the Price/Earnings ratio, HBI is valued cheaper than 81.25% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. HBI is valued rather cheaply when compared to this.
HBI is valuated reasonably with a Price/Forward Earnings ratio of 9.77.
HBI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HBI is cheaper than 85.42% of the companies in the same industry.
HBI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.77 |
4.2 Price Multiples
HBI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, HBI is valued a bit more expensive than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.55 | ||
| EV/EBITDA | 8.49 |
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 17.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y22.64%
EPS Next 3Y17.53%
5. Dividend
5.1 Amount
HBI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.61
-0.03 (-0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.24%
Inst Owner Change-2.48%
Ins Owners1.11%
Ins Owner Change-0.09%
Market Cap2.34B
Revenue(TTM)3.49B
Net Income(TTM)89.23M
Analysts70
Price Target6.16 (-6.81%)
Short Float %8.46%
Short Ratio4.38
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)125.71%
Min EPS beat(2)33.5%
Max EPS beat(2)217.92%
EPS beat(4)4
Avg EPS beat(4)73.29%
Min EPS beat(4)17.38%
Max EPS beat(4)217.92%
EPS beat(8)6
Avg EPS beat(8)43.31%
EPS beat(12)9
Avg EPS beat(12)34.6%
EPS beat(16)11
Avg EPS beat(16)27.01%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.05%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)1.19%
Revenue beat(8)2
Avg Revenue beat(8)-6.83%
Revenue beat(12)3
Avg Revenue beat(12)-4.9%
Revenue beat(16)4
Avg Revenue beat(16)-4.45%
PT rev (1m)3.68%
PT rev (3m)11.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)0%
EPS NY rev (3m)22.22%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 9.77 | ||
| P/S | 0.67 | ||
| P/FCF | 40.55 | ||
| P/OCF | 26.64 | ||
| P/B | 14.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.49 |
EPS(TTM)0.63
EY9.53%
EPS(NY)0.68
Fwd EY10.24%
FCF(TTM)0.16
FCFY2.47%
OCF(TTM)0.25
OCFY3.75%
SpS9.85
BVpS0.47
TBVpS-3.94
PEG (NY)0.22
PEG (5Y)N/A
Graham Number2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 53.63% | ||
| ROCE | 16.81% | ||
| ROIC | 13.28% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 36.61% | ||
| OM | 13.47% | ||
| PM (TTM) | 2.56% | ||
| GM | 42.19% | ||
| FCFM | 1.65% |
ROA(3y)-3.54%
ROA(5y)-2.1%
ROE(3y)-326.11%
ROE(5y)-195.33%
ROIC(3y)9.25%
ROIC(5y)10.86%
ROICexc(3y)9.89%
ROICexc(5y)12.07%
ROICexgc(3y)24.54%
ROICexgc(5y)28.18%
ROCE(3y)11.7%
ROCE(5y)13.75%
ROICexgc growth 3Y-1.22%
ROICexgc 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-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Debt/EBITDA | 4.29 | ||
| Cap/Depr | 51.19% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.62% | ||
| Profit Quality | 64.63% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.91 |
F-Score7
WACC10.85%
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)142.31%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%60%
EPS Next Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y14.06%
Revenue 1Y (TTM)-23.93%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-0.41%
Revenue Next Year-2.25%
Revenue Next 2Y-1.67%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.83%
EBIT growth 1Y8.16%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year31.24%
EBIT Next 3Y10.56%
EBIT Next 5Y8.7%
FCF growth 1Y-45.95%
FCF growth 3Y-25.8%
FCF growth 5Y-20.26%
OCF growth 1Y-59.08%
OCF growth 3Y-24.88%
OCF growth 5Y-19.94%
HANESBRANDS INC / HBI FAQ
What is the fundamental rating for HBI stock?
ChartMill assigns a fundamental rating of 3 / 10 to HBI.
Can you provide the valuation status for HANESBRANDS INC?
ChartMill assigns a valuation rating of 6 / 10 to HANESBRANDS INC (HBI). This can be considered as Fairly Valued.
How profitable is HANESBRANDS INC (HBI) stock?
HANESBRANDS INC (HBI) has a profitability rating of 4 / 10.
What is the earnings growth outlook for HANESBRANDS INC?
The Earnings per Share (EPS) of HANESBRANDS INC (HBI) is expected to grow by 48.77% in the next year.
Is the dividend of HANESBRANDS INC sustainable?
The dividend rating of HANESBRANDS INC (HBI) is 0 / 10 and the dividend payout ratio is 0%.