HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to HIW. HIW was compared to 130 industry peers in the Diversified REITs industry. HIW has a medium profitability rating, but doesn't score so well on its financial health evaluation. HIW is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HIW was profitable.
In the past year HIW had a positive cash flow from operations.
Each year in the past 5 years HIW has been profitable.
Each year in the past 5 years HIW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HIW (1.65%) is better than 63.08% of its industry peers.
The Return On Equity of HIW (4.23%) is better than 66.92% of its industry peers.
HIW has a Return On Invested Capital (2.93%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HIW is in line with the industry average of 3.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.23% | ||
| ROIC | 2.93% |
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 better Profit Margin (12.08%) than 66.15% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 25.76%, HIW perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
HIW's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 67.04%, HIW is in line with its industry, outperforming 52.31% of the companies in the same industry.
HIW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.76% | ||
| PM (TTM) | 12.08% | ||
| GM | 67.04% |
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
HIW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HIW has more shares outstanding than it did 1 year ago.
HIW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HIW has a worse debt to assets ratio.
2.2 Solvency
HIW has an Altman-Z score of 0.60. 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 0.60. This is comparable to the rest of the industry: HIW outperforms 55.38% of its industry peers.
HIW has a debt to FCF ratio of 15.35. This is a negative value and a sign of low solvency as HIW would need 15.35 years to pay back of all of its debts.
HIW has a better Debt to FCF ratio (15.35) than 81.54% of its industry peers.
HIW has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
HIW's Debt to Equity ratio of 1.39 is in line compared to the rest of the industry. HIW outperforms 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 15.35 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.44
WACC6.68%
2.3 Liquidity
HIW has a Current Ratio of 1.44. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.44, HIW is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that HIW should not have too much problems paying its short term obligations.
HIW has a Quick ratio (1.25) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.44% over the past year.
Measured over the past years, HIW shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.09% on average per year.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -0.98% in the last year.
The Revenue has been growing slightly by 2.33% on average over the past years.
EPS 1Y (TTM)43.44%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%232%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
3.2 Future
HIW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.01% yearly.
HIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y-40.22%
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
EPS Next 5YN/A
Revenue Next Year-0.19%
Revenue Next 2Y2.43%
Revenue Next 3Y2.21%
Revenue Next 5Y3.35%
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.
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 16.67 indicates a correct valuation of HIW.
Based on the Price/Earnings ratio, HIW is valued cheaper than 83.85% 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 28.22.
A Price/Forward Earnings ratio of 39.85 indicates a quite expensive valuation of HIW.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.86. HIW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 39.85 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 65.38% of the companies in the same industry.
HIW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HIW is cheaper than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
HIW's earnings are expected to decrease with -14.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.98%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 16.33.
Compared to an average S&P500 Dividend Yield of 2.44, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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 215.35% of its income as dividend. This is not a sustainable payout ratio.
HIW's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP215.35%
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
29.18
+0.52 (+1.81%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.59%
Inst Owner Change-0.09%
Ins Owners1.67%
Ins Owner Change-0.26%
Market Cap3.15B
Analysts71.43
Price Target31.28 (7.2%)
Short Float %3.87%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP215.35%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.74%
Min EPS beat(2)-35.53%
Max EPS beat(2)71.02%
EPS beat(4)3
Avg EPS beat(4)46.41%
Min EPS beat(4)-35.53%
Max EPS beat(4)116.36%
EPS beat(8)6
Avg EPS beat(8)36.15%
EPS beat(12)8
Avg EPS beat(12)24.82%
EPS beat(16)12
Avg EPS beat(16)38.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)2
Avg Revenue beat(12)-0.82%
Revenue beat(16)4
Avg Revenue beat(16)-0.56%
PT rev (1m)-2.26%
PT rev (3m)-3.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)210.71%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)77.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 39.85 | ||
| P/S | 3.81 | ||
| P/FCF | 14.66 | ||
| P/OCF | 7.79 | ||
| P/B | 1.33 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)1.75
EY6%
EPS(NY)0.73
Fwd EY2.51%
FCF(TTM)1.99
FCFY6.82%
OCF(TTM)3.74
OCFY12.83%
SpS7.66
BVpS21.9
TBVpS21.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.23% | ||
| ROCE | 3.71% | ||
| ROIC | 2.93% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 2.94% | ||
| OM | 25.76% | ||
| PM (TTM) | 12.08% | ||
| GM | 67.04% | ||
| FCFM | 25.99% |
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-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 15.35 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 63.19% | ||
| Cap/Sales | 22.88% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 78.86% | ||
| Profit Quality | 215.12% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.6 |
F-Score3
WACC6.68%
ROIC/WACC0.44
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)43.44%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%232%
EPS Next Y-40.22%
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
Revenue Next Year-0.19%
Revenue Next 2Y2.43%
Revenue Next 3Y2.21%
Revenue Next 5Y3.35%
EBIT growth 1Y-4.61%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year120.66%
EBIT Next 3Y33.89%
EBIT Next 5Y25.05%
FCF growth 1Y26.15%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y6.05%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%