HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - NYSE:HBI - US4103451021 - Common Stock
6.27 USD
-0.05 (-0.79%)
6.27 USD
0 (0%)
Overall HBI gets a fundamental rating of 4 out of 10. We evaluated HBI against 49 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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 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.
The Return On Equity of HBI (53.63%) is better than 97.96% of its industry peers.
HBI's Return On Invested Capital of 13.28% is fine compared to the rest of the industry. HBI outperforms 77.55% of its industry peers.
HBI had an Average Return On Invested Capital over the past 3 years of 9.25%. This is below the industry average of 12.08%.
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
With a Profit Margin value of 2.56%, HBI perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
HBI's Operating Margin of 13.47% is amongst the best of the industry. HBI outperforms 83.67% of its industry peers.
HBI's Operating Margin has declined in the last couple of years.
HBI's Gross Margin of 42.19% is on the low side compared to the rest of the industry. HBI is outperformed by 63.27% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HBI is still creating some value.
Compared to 1 year ago, HBI has more shares outstanding
HBI has less shares outstanding than it did 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.
The Altman-Z score of HBI (1.90) is worse than 81.63% of its industry peers.
The Debt to FCF ratio of HBI is 41.06, which is on the high side as it means it would take HBI, 41.06 years of fcf income to pay off 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 63.27% of its industry peers.
A Debt/Equity ratio of 13.62 is on the high side and indicates that HBI has dependencies on debt financing.
HBI has a Debt to Equity ratio of 13.62. This is amonst the worse of the industry: HBI underperforms 91.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.24
WACC10.73%
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 73.47% 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.
Looking at the Quick ratio, with a value of 0.74, HBI is doing worse than 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 142.31% over the past year.
Measured over the past years, HBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.96% on average per year.
HBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.93%.
The Revenue for HBI have been decreasing by -11.40% on average. This is quite bad
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.
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
HBI is valuated reasonably with a Price/Earnings ratio of 9.95.
83.67% of the companies in the same industry are more expensive than HBI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HBI to the average of the S&P500 Index (27.20), we can say HBI is valued rather cheaply.
HBI is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
Based on the Price/Forward Earnings ratio, HBI is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.71. HBI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.26 |
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 61.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.46 | ||
| EV/EBITDA | 8.3 |
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 17.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
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 |
6.27
-0.05 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners93.15%
Inst Owner Change1.92%
Ins Owners1.12%
Ins Owner Change7.33%
Market Cap2.22B
Analysts70
Price Target5.95 (-5.1%)
Short Float %6.13%
Short Ratio2.37
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)10.87%
PT rev (3m)7.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.4%
EPS NY rev (1m)22.22%
EPS NY rev (3m)22.22%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.64 | ||
| P/FCF | 38.46 | ||
| P/OCF | 25.27 | ||
| P/B | 13.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.3 |
EPS(TTM)0.63
EY10.05%
EPS(NY)0.68
Fwd EY10.8%
FCF(TTM)0.16
FCFY2.6%
OCF(TTM)0.25
OCFY3.96%
SpS9.85
BVpS0.47
TBVpS-3.94
PEG (NY)0.2
PEG (5Y)N/A
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%
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-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
WACC10.73%
ROIC/WACC1.24
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 Year26.31%
EBIT Next 3Y9.48%
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%