HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT - Currency: USD
Taking everything into account, HIW scores 5 out of 10 in our fundamental rating. HIW was compared to 129 industry peers in the Diversified REITs industry. HIW has only an average score on both its financial health and profitability. HIW is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HIW had positive earnings in the past year.
HIW had a positive operating cash flow in the past year.
In the past 5 years HIW has always been profitable.
Each year in the past 5 years HIW had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.82%, HIW is doing good in the industry, outperforming 75.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.10%, HIW belongs to the top of the industry, outperforming 82.17% of the companies in the same industry.
HIW's Return On Invested Capital of 2.84% is in line compared to the rest of the industry. HIW outperforms 56.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HIW is in line with the industry average of 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 7.1% | ||
| ROIC | 2.84% |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)3.09%
ROIC(5y)3.29%
1.3 Margins
HIW has a Profit Margin of 21.00%. This is in the better half of the industry: HIW outperforms 77.52% of its industry peers.
In the last couple of years the Profit Margin of HIW has declined.
HIW has a Operating Margin (25.71%) which is comparable to the rest of the industry.
HIW's Operating Margin has been stable in the last couple of years.
HIW has a Gross Margin of 67.27%. This is comparable to the rest of the industry: HIW outperforms 52.71% of its industry peers.
In the last couple of years the Gross Margin of HIW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.71% | ||
| PM (TTM) | 21% | ||
| GM | 67.27% |
OM growth 3Y-5.14%
OM growth 5Y0.08%
PM growth 3Y-33.17%
PM growth 5Y-7.93%
GM growth 3Y-1.06%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HIW is destroying value.
Compared to 1 year ago, HIW has more shares outstanding
Compared to 5 years ago, HIW has more shares outstanding
HIW has a worse debt/assets ratio than last year.
2.2 Solvency
HIW has an Altman-Z score of 0.66. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
HIW has a Altman-Z score of 0.66. This is comparable to the rest of the industry: HIW outperforms 55.81% of its industry peers.
The Debt to FCF ratio of HIW is 17.31, which is on the high side as it means it would take HIW, 17.31 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HIW (17.31) is better than 82.95% of its industry peers.
HIW has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.38, HIW perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.36
WACC7.99%
2.3 Liquidity
HIW has a Current Ratio of 1.49. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HIW (1.49) is better than 69.77% of its industry peers.
HIW has a Quick Ratio of 1.49. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
HIW's Quick ratio of 1.49 is fine compared to the rest of the industry. HIW outperforms 70.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
HIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
The Earnings Per Share has been decreasing by -2.09% on average over the past years.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -2.11% in the last year.
Measured over the past years, HIW shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
EPS 1Y (TTM)50%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%264%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
3.2 Future
The Earnings Per Share is expected to decrease by -13.23% on average over the next years. This is quite bad
HIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y-8.28%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
EPS Next 5YN/A
Revenue Next Year-0.4%
Revenue Next 2Y2.33%
Revenue Next 3Y2.16%
Revenue Next 5Y3.27%
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 decreasing.
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 17.21, the valuation of HIW can be described as rather expensive.
HIW's Price/Earnings ratio is rather cheap when compared to the industry. HIW is cheaper than 87.60% of the companies in the same industry.
HIW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 42.28, which means the current valuation is very expensive for HIW.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than the industry average as 63.57% of the companies are valued more expensively.
HIW's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 42.28 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA is on the same level as the industry average.
HIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HIW is cheaper than 80.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 13.34 |
4.3 Compensation for Growth
The decent profitability rating of HIW may justify a higher PE ratio.
A cheap valuation may be justified as HIW's earnings are expected to decrease with -13.23% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.28%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 6.75.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
5.2 History
The dividend of HIW has a limited annual growth rate of 0.93%.
HIW has been paying a dividend for at least 10 years, so it has a reliable track record.
HIW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.93%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
HIW pays out 126.08% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of HIW has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP126.08%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
31.49
-0.36 (-1.13%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.64%
Inst Owner Change4.02%
Ins Owners1.9%
Ins Owner Change0.78%
Market Cap3.39B
Analysts71.43
Price Target31.05 (-1.4%)
Short Float %3.43%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.28% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP126.08%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)192.63%
Min EPS beat(2)71.02%
Max EPS beat(2)314.25%
EPS beat(4)3
Avg EPS beat(4)116.52%
Min EPS beat(4)-35.53%
Max EPS beat(4)314.25%
EPS beat(8)6
Avg EPS beat(8)71.25%
EPS beat(12)8
Avg EPS beat(12)50.12%
EPS beat(16)12
Avg EPS beat(16)52.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.1%
Revenue beat(12)1
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-0.73%
PT rev (1m)-1.08%
PT rev (3m)-2.97%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)39.87%
EPS NY rev (1m)53.43%
EPS NY rev (3m)90.87%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.21 | ||
| Fwd PE | 42.28 | ||
| P/S | 4.17 | ||
| P/FCF | 17.61 | ||
| P/OCF | 8.99 | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 13.34 |
EPS(TTM)1.83
EY5.81%
EPS(NY)0.74
Fwd EY2.37%
FCF(TTM)1.79
FCFY5.68%
OCF(TTM)3.5
OCFY11.12%
SpS7.56
BVpS22.36
TBVpS22.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 7.1% | ||
| ROCE | 3.59% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 2.85% | ||
| OM | 25.71% | ||
| PM (TTM) | 21% | ||
| GM | 67.27% | ||
| FCFM | 23.66% |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)3.09%
ROIC(5y)3.29%
ROICexc(3y)3.11%
ROICexc(5y)3.32%
ROICexgc(3y)3.11%
ROICexgc(5y)3.32%
ROCE(3y)3.92%
ROCE(5y)4.16%
ROICexcg growth 3Y-5.82%
ROICexcg growth 5Y-0.78%
ROICexc growth 3Y-5.82%
ROICexc growth 5Y-0.78%
OM growth 3Y-5.14%
OM growth 5Y0.08%
PM growth 3Y-33.17%
PM growth 5Y-7.93%
GM growth 3Y-1.06%
GM growth 5Y0.24%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 17.31 | ||
| Debt/EBITDA | 6.59 | ||
| Cap/Depr | 62.23% | ||
| Cap/Sales | 22.66% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 74.55% | ||
| Profit Quality | 112.66% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 0.66 |
F-Score5
WACC7.99%
ROIC/WACC0.36
Cap/Depr(3y)72.48%
Cap/Depr(5y)90.32%
Cap/Sales(3y)25.75%
Cap/Sales(5y)30.97%
Profit Quality(3y)148.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%264%
EPS Next Y-8.28%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
Revenue Next Year-0.4%
Revenue Next 2Y2.33%
Revenue Next 3Y2.16%
Revenue Next 5Y3.27%
EBIT growth 1Y-1.94%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year121.4%
EBIT Next 3Y34%
EBIT Next 5Y25.48%
FCF growth 1Y15.11%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y-7.25%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%