HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - NYSE:HBI - US4103451021 - Common Stock
6.39 USD
+0.04 (+0.63%)
6.39 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to HBI. HBI was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. HBI has a medium profitability rating, but doesn't score so well on its financial health evaluation. HBI has a correct valuation and a medium growth rate.
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.
In the past 5 years HBI reported 4 times negative net income.
HBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HBI has a Return On Assets of 2.22%. This is comparable to the rest of the industry: HBI outperforms 50.00% of its industry peers.
HBI's Return On Equity of 53.63% is amongst the best of the industry. HBI outperforms 95.83% of its industry peers.
With a decent Return On Invested Capital value of 13.28%, HBI is doing good in the industry, outperforming 77.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HBI is below the industry average of 12.15%.
The 3 year average ROIC (9.25%) for HBI is below the current ROIC(13.28%), indicating increased profibility in the last year.
| 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
HBI's Profit Margin of 2.56% is in line compared to the rest of the industry. HBI outperforms 50.00% of its industry peers.
Looking at the Operating Margin, with a value of 13.47%, HBI belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
HBI's Operating Margin has declined in the last couple of years.
HBI has a Gross Margin of 42.19%. This is in the lower half of the industry: HBI underperforms 60.42% of its industry peers.
HBI's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HBI is creating some value.
Compared to 1 year ago, HBI has more shares outstanding
The number of shares outstanding for HBI has been reduced compared to 5 years ago.
Compared to 1 year ago, HBI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.90 indicates that HBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HBI has a Altman-Z score of 1.90. This is in the lower half of the industry: HBI underperforms 77.08% 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.
HBI has a Debt to FCF ratio of 41.06. This is in the lower half of the industry: HBI underperforms 62.50% of its industry peers.
HBI has a Debt/Equity ratio of 13.62. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 13.62, HBI is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.23
WACC10.78%
2.3 Liquidity
A Current Ratio of 1.52 indicates that HBI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.52, HBI is doing worse than 72.92% of the companies in the same industry.
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.
HBI has a worse Quick ratio (0.74) than 83.33% of its industry peers.
| 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 103.23%, which is quite impressive.
The earnings per share for HBI have been decreasing by -23.96% on average. This is quite bad
The Revenue has decreased by -3.63% in the past year.
The Revenue for HBI have been decreasing by -11.40% on average. This is quite bad
EPS 1Y (TTM)103.23%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-4.85%
3.2 Future
Based on estimates for the next years, HBI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.06% on average per year.
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
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
A Price/Earnings ratio of 10.14 indicates a reasonable valuation of HBI.
HBI's Price/Earnings ratio is rather cheap when compared to the industry. HBI is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of HBI to the average of the S&P500 Index (25.83), we can say HBI is valued rather cheaply.
The Price/Forward Earnings ratio is 9.44, which indicates a very decent valuation of HBI.
Based on the Price/Forward Earnings ratio, HBI is valued cheaper than 89.58% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 9.44 |
4.2 Price Multiples
HBI's Enterprise Value to EBITDA is on the same level as the industry average.
HBI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HBI is more expensive than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.2 | ||
| EV/EBITDA | 8.34 |
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)0.21
PEG (5Y)N/A
EPS Next 2Y22.64%
EPS Next 3Y17.53%
5. Dividend
5.1 Amount
No dividends for HBI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.39
+0.04 (+0.63%)
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 Cap2.26B
Revenue(TTM)3.51B
Net Income(TTM)89.23M
Analysts70
Price Target6.16 (-3.6%)
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)14.95%
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 | 10.14 | ||
| Fwd PE | 9.44 | ||
| P/S | 0.65 | ||
| P/FCF | 39.2 | ||
| P/OCF | 25.75 | ||
| P/B | 13.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.34 |
EPS(TTM)0.63
EY9.86%
EPS(NY)0.68
Fwd EY10.59%
FCF(TTM)0.16
FCFY2.55%
OCF(TTM)0.25
OCFY3.88%
SpS9.85
BVpS0.47
TBVpS-3.94
PEG (NY)0.21
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 | 1.9 |
F-Score7
WACC10.78%
ROIC/WACC1.23
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)103.23%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%0%
EPS Next Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y14.06%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-4.85%
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%.